Monsanto Case

Monsanto is a very famous agricultural corporation in the world. It established in 1901 and in the early time of Monsanto, it is a company whom purpose on producing goods for food industry and pharmacy industry. In 1981, Monsanto focus on transform to field of biotechnology. In 1990, Monsanto transferred all about the chemical products business to a newly established named Solutia Company and also left a lot of litigations about chemical to Solutia. So Monsanto became to an agriculture enterprise. Now Monsanto's major operation area are Latin America, Canada, US, Europe, Africa and Asia-Pacific.

Monsanto go abroad because it can help it exploiting firm-specific competitive advantages. It can seek resource, market and labor. On the other way, while it go aboard also get additional motivation, technology seeking, market engaging and competition matching. For example, Monsanto established in America, that's his parent country. After it went to china, in 1996 it established JiDai cottonseed technology limited company with Heibei province bureau of agriculture subordinate's seed station. So Monsanto got into Chinese market by form of Joint Venture Company. This is his host country. Then they hired some foreigner in china to work for the company, that's the third-country culture.

Father of strategic management--lgor Ansoff'. He said 3-step International Strategy. Doing "something" well, Moving that "something" from point A to B, then making money on that "something" on the B. Monsanto fellow it very well. It do the genetically modified goods very well in his parent country, then bring the transgenosis to the host country and make big money on the host country.

In the Monsanto's position, I think their mission is that for the world's food producers, we work to deliver products and solutions to help them reach their goals in ways that meet the world's growing food and fiber needs, conserving natural resources and improving the environment. And their vision: Abundant Food and a Healthy Environment. In my opinion, the SWOT of Monsanto as fellow:

Strengths have four points. First is technology. Monsanto products "Roundup" and get it patent. Roundup is very evil, I will explain later. Monsanto control biotechnology. Lead-edge technologies in Genetically Modified Organism support to innovation and research development. Second is Product. Monsanto is world leader in transgenic seeds with a wide range of seeds that meet farmers' wants and needs. Third is support, it got strong government support from Food and Drug Administration. Last is market. Monsanto is sharing 50%-70% of seed market and 90% market of transgenic seed in the global.

Weakness is that Monsanto risk from its Roundup, it can pollute to the environment and threat human's health. And its pesticide for transgenic beans kills animals.

Opportunities, in the market expansion a lot of developing countries need Monsanto. Some countries don't produce GMOs or a little. So Monsanto can extend its sphere of influence and sell more seeds than it does already do. Also some of countries go to