The following is a real case and it tells us about a company that produces agricultural inputs, and more precisely, the inoculant used in soybean production.
This is a family-owned company with large incomes, favored by a continuously expanding market due to the significant production of soybeans and the price it has reached in the markets. This led to a strong export of inoculants by the company in question. But like many companies that achieve important successes, their owners and managers are more enchanted by the benefits obtained, leaving aside the deep analysis of the market and competitors.
Thus, without a development strategy, and without taking into account the critical characteristics of their market, they follow a path that leads them to the precipice. In this order of things, the company in question could not think of a better idea than to appoint a relative to be a sales representative in one of the main soybean regions of the country. That relative to whom this activity is given is a doctor who treats the sale as a secondary matter.
He takes care of his patients and in the remaining hours he is in charge of this profitable family business.
The right thing to do is to select an agronomist with training and skills in sales and marketing, also complying with the company's strategies. The selection and / or choice of vendors and their corresponding field work are not a minor issue, they are part of one of the most important areas of any company, and much more if it is a high-tech agricultural company, in the which move millions of dollars. Markets in which those who make mistakes are sooner or later totally out of those markets.
The selection and as a consequence the policy followed by the company shows a total strategic ignorance on the part of the managers and owners. As it is a product that is in the second phase of the product life cycle, also having a very important profitability, and being a product of those linked to biotechnology, it increases the pressure of large companies to gain the largest share of market by taking advantage of the "experience curve", which allows you to reduce costs, consequently lower prices and take the competition out of the market.
Not having a 100% professional sales policy, with exclusive dedication, is giving other companies the possibility of taking over the market, which means in sales volume and, as a consequence, market positioning and cost reduction. Other markets served by professional sellers will fall as a result of the weakest link in the business chain.
Not having a strategy to defend and increase market share will make it impossible to compete on costs with the large multinational companies involved not only in the sale of fertilizers, agrochemicals and inoculants, but also in the sale of cereals, with which they obtain no not only economies of scale, but also strong and powerful economies of scope. Not managing these strategic concepts pre-announce the end not only of this company, but also of any other that trying to participate in markets with strong competition, are unaware not only of the structure and characteristics of said markets, but also of the complexity with which all must move. the pieces of the board.
In the commented case, the facts not only show a lack of commercial strategies, but also a total lack of awareness regarding marketing strategies. They are from these entrepreneurs who consider that while generating large volumes of income everything is fine and there is nothing new to learn.
