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Essay on Genetically Modified Food and Monsanto

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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 …show more content…

There are high entry barriers and this constitutes a low threat for the existing companies in the industry
Bargaining power of suppliers
In the industry the supplier’s goods are critical to buyer marketplace success. There are few major suppliers. Some of them, including Monsanto, have vertically integrated companies for the production of seed and for supply raw materials. It increased their power market. The fact that there are few major suppliers permits them to have a high bargaining power. It constitute a high threat
Bargaining power of buyers
Highly specialized farmers are the predominant buyers in this industry. They have a greater amount of information about the manufacturer’s products and costs through the Internet. They have a high bargaining power especially in the pesticide sector where switching costs are low. They constitute a high threat.
One-reason farmers decrease their power, though, is often the agreements signed with the companies that supplies their products.
Threat of substitute products
Due the high costs of technology, patents and government regulations there are no competitive substitute in the market. The only substitutes are the traditional pesticides and crops, which are still on the market with a percentage of 53%. They could constitute a high threat if patent and intellectual properties are banned.
Rivalry among existing competitors
Government regulation and patents laws have a major role in this market. The high cost

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