Monsanto Company is a multinational agricultural biotechnology and chemical corporation that produces genetically engineered (GE) seed and herbicide glyphosate. The company heavily invests in the biotechnology industry business model where they could use the technical developments in Genentech and biotech drugs to carry out their research works. Despite involvement into direct conflict with farmers and critic of threat to biodiversity, the seeds were productive and produced enormous yield ((Eds.) 100).
The Monsanto Company believes that ‘everyone would benefit when farmers are able to produce more with fewer resources’ (Vance 1) therefore, in order to offer support and promote them, the Monsanto Company settled on business model that would provide a new type of insurance to farmers; to acquire climatic corporation and combination to provide farmers with suite of farm tools. The company intends to use the Climate Corp. as a data and analytic services to offer farmers with precise ecological weather condition.The primary responsibility of companies is to win their customers trust by producing quality products. Monsanto Co. uses the loyalty business model strategically to increase their customers’ loyalty hoping that their aims and objective will be meet . Improved products quality and services offered is believed to provide satisfaction to customers, as a result therefore, increase sales and income.
In order to continuously grow and be able to control the market, the Monsanto Co. has allowed individual wholesalers and some small companies to franchise using their rights. This has helped it increase its sale by using the franchisor as supply chain to distribute their goods; moreover, because the franchisee has a direct stake in business they acquire incentive than direct employee (Timmers 5).
With the current information and technological mechanism developments such as coordination and aggregation, the company has been able to implement cutting out the middlemen business model through their supply chain thereby dealing with their customers directly via the internet (Afuah and Tucci 19). Websites and platforms that such companies develop, enable them to interact with their customers and moreover, allowing customers to give feedback about the products which they use to improve on their production qualities.
Direct sales marketing business model in most cases, is aimed at technical, strategic and financial objectives by the involved company. It is normally done through party plans, personal contact agreement and one-to-one stop either along the road side or at their homes (Shafer, Smith, and Linder 207). The Monsanto Company technically uses the model to regardless of selling their products at low prices, only to break even into the market and acquire feedback from the customers. Moreover, strategically and financially, aimed at boosting the corporations income, sales and be defensive to prevent others from having direct access to their best customers.
Being an agricultural biotechnology and chemical supplying corporation, the Monsanto Company uses the chemical leasing business model to shift people’s concentration from increasing its sale volume towards a value added approach. As a result therefore, they help control and ensure its efficient quality and economical benefits ((Eds.)110).
In conclusion therefore, business models play an important role in ensuring that companies develop proper strategies so as to be viable and withstand competition from others, moreover, they be sustainable and long term entities. The fact that it explores a large scope of business growth and development, this broadens the management area of thinking on how to link factors so as to achieve the companies’ goal.
(Eds.), Christian Nielsen & Morten Lund. Business Models. Bookboon. Print.
Afuah, Allan, and Christopher L. Tucci. Internet Business Models and Strategies: Text and Cases. 1st ed. McGraw-Hill Higher Education, 2000. Print.
Shafer, Scott M., H. Jeff Smith, and Jane C. Linder. “The Power of Business Models.” Business Horizons 48.3 (2005): 199–207. ScienceDirect. Web. 20 Oct. 2013.
Timmers, Paul. “Business Models for Electronic Markets.” Electronic Markets 8.2 (1998): 3–8. Taylor and Francis+NEJM. Web. 20 Oct. 2013.
Vance, Ashlee. “Monsanto’s Billion-Dollar Bet Brings Big Data to the Farm.” BusinessWeek: technology 2 Oct. 2013. BusinessWeek. Web. 20 Oct. 2013.
REFERENCESAdditional resources:ISB2 - Brychan Thomas, Christopher Miller , Lyndon Murphy, Innovation and Small Business – Vol 2, ISBN: 978-87-7681-733-6, 1 edition, free:http://bookboon.com/en/innovation-and-small-business-volume-2-ebookBM - Christian Nielsen , Morten Lund (Eds.), Business Models - Networking, Innovating andGlobalizing, ISBN: 978-87-403-0179-3, 2 edition, free:http://bookboon.com/en/business-models-ebook