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Monsanto is a seed company with a monopoly in the United States. Monsanto regulates more than 80% of the retail supply. It is a monopoly market because it is the primary manufacturer and has market influence. Furthermore, Monsanto sets the price and does not accept it. It has a monopoly because it is the market's only manufacturer.
A monopoly is bad for buyers since the seller will intentionally raise costs by causing a scarcity of supply. When the amount supplied is small, the price will rise. It is very inconvenient for customers.
There are rivals, but none pose a serious threat. We have DuPont and Syngenta by our side. In a monopoly, there is need to distinguish your products and set a niche above others. In this case, it is the main product; they work to create a brand. It is not easy for new firms to enter a monopoly market. It is because a large firm that has enjoyed profits for a long time will lower its prices below which a new competitor will not survive in the market.
In the global perspective, Monsanto faces competition and a CR4 ration of 23%. However, in the US, it dominates the market with almost triple that percentage.
If you are not familiar with the Monsanto market structure, you are not alone. There are many other companies in the same position. Here are a few examples. Listed below are several of these companies and their market structures. Read on to learn more. But, before we go any further, let's look at the company itself. What are its core strengths and weaknesses? How does it compete in the market? Does it have a diverse portfolio of products?
The Monsanto Company is a multinational seed company that provides seeds and agriculture products to farmers worldwide. Founded in 1901, Monsanto has offices and employs over 20,000 people worldwide. The company is divided into two divisions: seeds and plants. Its market share is nearly 80%. The company has considerable influence over price, as it is the only manufacturer. Monopolies are harmful to buyers, since they artificially raise the costs of goods.
Moreover, the market structure of ag-biotech is highly concentrated. The first three companies dominate the global seed market. The rest are fragmented, with many growers and few consumers. Agricultural biotech companies invent seeds and traits for these crops, which are then sold to distributors. Retail grocers and food manufacturers buy these seeds. Combined, these companies control about 80 percent of U.S. corn, cotton, and soybean acres.
In addition, Monsanto is looking to dominate the supply chain. To this end, the company plans to create a central "digital agriculture" platform. FieldView will serve as a software hub for commercial farmers to access real-time data about their crops. This platform will be monitored by satellites and sensors. It will initially be open to third-party developers to create new software for it, but eventually it will serve as the central hub of agricultural data.
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