Monsanto Co.: The Coming of Age of Biotechnology SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Monsanto Co.: The Coming of Age of Biotechnology
Monsanto has one product, Roundup, accounting for 30% of company net income and is going off patent. How should the company position itself and its products in the future?
Swot Analysis of "Monsanto Co.: The Coming of Age of Biotechnology" written by Ray A. Goldberg, Thomas N. Urban includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Monsanto Roundup facing as an external strategic factors. Some of the topics covered in Monsanto Co.: The Coming of Age of Biotechnology case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Monsanto Co.: The Coming of Age of Biotechnology casestudy better are - – there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing commodity prices, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Monsanto Co.: The Coming of Age of Biotechnology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Monsanto Co.: The Coming of Age of Biotechnology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Monsanto Roundup, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Monsanto Roundup operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Monsanto Co.: The Coming of Age of Biotechnology can be done for the following purposes –
1. Strategic planning using facts provided in Monsanto Co.: The Coming of Age of Biotechnology case study
2. Improving business portfolio management of Monsanto Roundup
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Monsanto Roundup
Strengths Monsanto Co.: The Coming of Age of Biotechnology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Monsanto Roundup in Monsanto Co.: The Coming of Age of Biotechnology Harvard Business Review case study are -
Effective Research and Development (R&D)
– Monsanto Roundup has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Monsanto Co.: The Coming of Age of Biotechnology - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Monsanto Roundup has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Monsanto Roundup is one of the leading recruiters in the industry. Managers in the Monsanto Co.: The Coming of Age of Biotechnology are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Monsanto Roundup is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Monsanto Roundup is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Monsanto Co.: The Coming of Age of Biotechnology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Monsanto Roundup is present in almost all the verticals within the industry. This has provided firm in Monsanto Co.: The Coming of Age of Biotechnology case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Monsanto Roundup in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Monsanto Roundup has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Monsanto Roundup has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Monsanto Co.: The Coming of Age of Biotechnology Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Monsanto Roundup is one of the most innovative firm in sector. Manager in Monsanto Co.: The Coming of Age of Biotechnology Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Monsanto Roundup are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Monsanto Roundup digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Monsanto Roundup has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Sales & Marketing industry
– Monsanto Co.: The Coming of Age of Biotechnology firm has clearly differentiated products in the market place. This has enabled Monsanto Roundup to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Monsanto Roundup to invest into research and development (R&D) and innovation.
Weaknesses Monsanto Co.: The Coming of Age of Biotechnology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Monsanto Co.: The Coming of Age of Biotechnology are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Monsanto Roundup supply chain. Even after few cautionary changes mentioned in the HBR case study - Monsanto Co.: The Coming of Age of Biotechnology, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Monsanto Roundup vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Monsanto Roundup has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Monsanto Roundup even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Monsanto Roundup has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Monsanto Co.: The Coming of Age of Biotechnology, in the dynamic environment Monsanto Roundup has struggled to respond to the nimble upstart competition. Monsanto Roundup has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Monsanto Co.: The Coming of Age of Biotechnology, it seems that the employees of Monsanto Roundup don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High operating costs
– Compare to the competitors, firm in the HBR case study Monsanto Co.: The Coming of Age of Biotechnology has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Monsanto Roundup 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Monsanto Co.: The Coming of Age of Biotechnology HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Monsanto Roundup has relatively successful track record of launching new products.
High cash cycle compare to competitors
Monsanto Roundup has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Monsanto Roundup is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Monsanto Co.: The Coming of Age of Biotechnology can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Monsanto Co.: The Coming of Age of Biotechnology that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Monsanto Co.: The Coming of Age of Biotechnology can leverage the sales team experience to cultivate customer relationships as Monsanto Roundup is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Monsanto Roundup needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Monsanto Co.: The Coming of Age of Biotechnology | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Monsanto Co.: The Coming of Age of Biotechnology are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Monsanto Roundup in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Monsanto Roundup can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Monsanto Roundup is facing challenges because of the dominance of functional experts in the organization. Monsanto Co.: The Coming of Age of Biotechnology case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Monsanto Roundup in the consumer business. Now Monsanto Roundup can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Monsanto Roundup can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Monsanto Roundup to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Monsanto Roundup to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Monsanto Roundup has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Monsanto Co.: The Coming of Age of Biotechnology - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Monsanto Roundup to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Monsanto Roundup can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Monsanto Co.: The Coming of Age of Biotechnology suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Monsanto Roundup can use these opportunities to build new business models that can help the communities that Monsanto Roundup operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Loyalty marketing
– Monsanto Roundup has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Monsanto Roundup can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Monsanto Roundup to increase its market reach. Monsanto Roundup will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Monsanto Roundup has opened avenues for new revenue streams for the organization in the industry. This can help Monsanto Roundup to build a more holistic ecosystem as suggested in the Monsanto Co.: The Coming of Age of Biotechnology case study. Monsanto Roundup can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Monsanto Co.: The Coming of Age of Biotechnology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Monsanto Co.: The Coming of Age of Biotechnology are -
High dependence on third party suppliers
– Monsanto Roundup high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Monsanto Co.: The Coming of Age of Biotechnology, Monsanto Roundup may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Environmental challenges
– Monsanto Roundup needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Monsanto Roundup can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Monsanto Roundup with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Monsanto Roundup is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Monsanto Roundup can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Monsanto Roundup
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Monsanto Roundup.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Monsanto Roundup business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Monsanto Roundup in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Monsanto Roundup has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Monsanto Roundup needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Monsanto Roundup needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Weighted SWOT Analysis of Monsanto Co.: The Coming of Age of Biotechnology Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Monsanto Co.: The Coming of Age of Biotechnology needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Monsanto Co.: The Coming of Age of Biotechnology is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Monsanto Co.: The Coming of Age of Biotechnology is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Monsanto Co.: The Coming of Age of Biotechnology is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Monsanto Roundup needs to make to build a sustainable competitive advantage.
