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-Up?competes 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 ...