Monsanto is a multinational agrochemical and agricultural corporation. The company has subsidiary outlets around the world, especially in agriculture dependent countries. Its purchase of Bayer AG in 2016 allowed it to expand internationally. The vastness and expansiveness of Bayer AG into Europe and the Middle East countries have given Monsanto Company an international presence that allows it to permeate far and wide.
The geographical structure design of Monsanto Company relies heavily on its subsidiary outlets in the many countries of establishment to ensure functionality. The structure ensures connectivity and gives the company a wide berth of operation across a broad spectrum. For example, the fact that there is a growing population and ever growing rising middle class has provided a runway for products like beans and corn. Monsanto’s presence in the third world countries allows incorporation of integrated solutions that helps in the attainment of positive presence. Hence, offering Monsanto’s geographical-area leadership structure a leadership presence in those countries of establishment. This is in turn helps it adopts an integrated approach that allows the implementation of data science and seed technology in unlocking solutions that gives the company an advantage over its competitors in these new geographies. These platforms help the company to create value in subsidiary branches and introduce new technologies and categories like fertility in seeds like corn and wheat.
Monsanto deals with agrochemical products. With the purchase of Bayer AG, they added veterinary and human pharmaceutical products. Agricultural and its health products vary from one place to another due to climatic and ecological differences. This means that product distribution varies depending on area adaptability to a product. Monsanto global presence means that it has to ensure that it addresses those existing differences in its product. The parent company has research facilities that ensure products produced and distributed by the company get to meet a countries geographical requirement. For example, despite the similarities between the Irish and the Kenyan dairy farming practices, the difference in ecological disease prevalence means that veterinary health products differ in content. Also, the prevalence of disease occurrence in the tropics means that the kind of products supplied there will differ greatly as compared to maybe Europe or in the Middle East.
To permeate the Mexican market, Monsanto employs a number of strategies that allow it to identify with the Mexican market (Kanthan 74-83). For example, Mexico is a country that is dependent on agribusiness to an extent. Thus, Monsanto needs to conduct research on the viability of the Mexican market in order to ensure productivity of content products. Product branding, distribution, and advertisements have been used to ensure sales and identify with a relatively harsh market.
Due to the versatile nature of the Mexican market, Monsanto has faced a backlash especially in regard to its GMO maize products and its pesticide products. This has hindered the growth of Monsanto as a brand in Mexico (Louv 173). The strategies adopted to ensure viability have meant Monsanto has had to address Mexico with a different approach. For example, the corn crises that engulfed Mexico gave an opportunity for Monsanto to venture into the market. In order to achieve this goal, Monsanto purchased land and planted its own GMO corn seed as way of localizing and introducing the product into the market.
The importance of the Mexican market lies in its agricultural ability. However, the difficulty in venturing into such a market means the company has to adopt a totally different approach. It cannot simply standardize entry strategies into this kind of a market (Kanthan 33). The existence of activists, a strict government policy, and a conscious people requires Monsanto to adopt a more localized strategy that allows the market to adopt it as a true and genuine brand.
Louv, Jason. Monsanto vs. the World: The Monsanto Protection Act, GMOs and Our Genetically Modified Future. New York: Create Space Independent Publishing Platform. 2013.
Kanthan, Chris. Deconstructing Monsanto. Ottawa: Kanthan Publishing.2015.