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Monsanto Case Study
Monsanto is a multinational world leader in the production of the herbicide glyphosate and in the manipulation of genetically modified (GM) seeds. They were a chemical company, which shifted into the new life science area developing numerous patents related to genetic techniques and GM seeds variety. The company entered in the agrobiochemical industry, which is in its growth life cycle based on continuous product improvements and replacement by superior traits. The industry is focused on chemical products used in agriculture and genetically modified crops.
There are rivals in the agrobiochemical industry and during the early 2000s; government regulation, public and medical concern about the safety of genetically modified (GM) foods affected its sales and profits.
Analysis of the external environment:
Economic segment
The lack of food experienced by countries and the consequent increase of their costs given the opportunity to private and public companies to invest in appropriate researches in biotechnology to mitigate food security problems and improve food quality. Mergers and acquisitions among agrobiochemical multinationals have been developed in order to improve technologies and promote researches.
Global segment
The globalization of market provided opportunities for private industry to expand their sales in other countries. The major market for agrobiochemical products is USA and Europe. Developing countries such as Brazil, and India have started to increase their production acreage and to invest in biotechnological products.
Political/legal segment
Intellectual properties and patents laws are importan ...