Dairyland Case Study
Company Analysis
Strengths:
Commitment to R&D and innovation
Leader in the development of STS varieties
Proprietary research in alfalfa, corn, and soybeans
Premium price leading to higher margins
Products fare well in trials
Largest alfalfa breeding program in industry
Corn growing steadily
Customer focus
Weaknesses:
No definitive, strong relationship with either biotechnology company
Family ownership may lead to a lack of new strategic vision
Not enough focus on specific traits
Little experience outside of local markets
Opportunities:
Round-Up growth
Partnership with Monsanto
Full participation in Monsanto's rebate program
No dominant supplier in alfalfa (product being one of Dairyland's strengths)
New Dairyland varieties demonstrate resistance to particular plant diseases (niche market opportunities)
Threats:
Competition is intense in all three product categories
Competitors like Novartis and Pioneer not having to pay Monsanto the technology fee have greater funds for R&D
Market share growth of Round-Upcompetes directly with STS
DuPont's more tight relationship with Dairyland's key competitor Pioneer
STS markets may become less attainable due to Monsanto's rebate program
Farmers are becoming less brand loyal and more economically focused
Higher price may look unattractive to the cost-conscious farmers
Problem Statement
How can Dairyland continue to provide the best value to its customers and profitably compete in a changing and intensely competitive seed industry?
Alternatives
1. End the DuPont relationship and focus solely on Monsanto
2. End the Monsanto relationship and focus solely on DuPont
3. Proceed with both...
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