Monsanto: Product Differentiation

In Chapter 7, Barney discusses how businesses use product differentiation to their advantage.  There are various way that firms can differentiate their products or services:

Product features

Product complexity

Timing of product introduction

Location

Product customization

Consumer marketing

Product reputation

Linkages among functions within a firm

Linkages with other firms

Product mix

Distribution channels

Service and support

Monsanto utilizes a few of these to their advantage. 

Product features: Monsanto provides seeds that are genetically modified to fight off infestation from weeds and certain pests.  Research and development is constant to stay abreast of the needs of farmers and keep an edge over the competition.

Product complexity: Similar to product features, Monsanto uses this to stay ahead.  Making sure their products meet a particular need, they also have seeds that must be replanted annually to increase sales and stay current.

Timing of product introduction is key to ensure the product is available in time for planting season.

Location:  They produce globally and provide globally.

Consumer marketing and product reputation are two areas where Monsanto could perhaps use a little help.  Lack of regulation on GMOs means they are widely criticized and many end product consumers are speculative regarding the safety and wholesomeness of their genetically modified seeds.  Also, with the company being a producer of chemicals from it's beginning, they carry a stigma they can't seem to shake.