International Strategic Marketing, Syngenta Case Essay Example

in the primary sector, and Syngenta has gained a reputation for providing innovative solutions and brands to growers and the food and feed chain. The company employs scientists such as biologists and chemists to conduct systematic investigations to seek answers to agricultural problems, which may eventually lead to new products. For example, the company's chemists investigate thousands of different compounds to find potentials for a new crop protection product. The development process involves turning research findings into a product, which can take up to 9 years for Syngenta's products to reach the market.

Consequently, it can be deduced that the process may require significant expenditures. Research and development costs are treated as expenses from an accounting perspective and only classified as assets if available for commercial production. Thus, Syngenta can only gain a return on its investment after introducing new products to the market. To ensure protection of their research and development investments, Syngenta must engage in regular cost-benefit analyses of their developing products and employ protective measures such as patenting. However, it should be noted that the protection offered by patents is limited in terms of time. Therefore, focusing on fully patentable products would be advantageous for achieving good profitability.

According to Syngenta (2007), in order to fully appreciate their R&D program, it must be aligned with the company's primary goals. These goals include providing safe and effective products for farmers and growers, developing new plant varieties that produce higher yields and quality in diverse soil and weather conditions, and maximizing crop productivity while maintaining and enhancing farmland biodiversity.

When considering the role of R;D, it may be questioned if introducing new innovations at appropriate times

can extend the maturity stage. To achieve this, product development personnel must know when a product should mature and when new innovations should be introduced. Furthermore, appropriate portfolio analysis models can also be used to compare the relative success of different product lines and suggest strategies that fit the company's strengths and exploit the most attractive opportunities (Tutor2u, n.d.).

Using the given definition, a portfolio analysis involves determining the best combination of products and services to fulfill corporate objectives. As such, companies must assess their current portfolio and make decisions about investing in certain businesses, developing growth strategies, and discontinuing certain products or businesses. Two popular portfolio planning methods include the Boston Consulting Group Portfolio Matrix and the McKinsey/General Electric Matrix.

In either of the two methods, the first step is to identify the Strategic Business Units (SBUs) present in a company's portfolio. The way an SBU is structured may vary. It can be a division, a product line, or a single brand, but it should function independently of other units. This assumes that each SBU has a unique mission and objective. Based on this, Syngenta should categorize its current products according to their individual missions or objectives for future planning.

Sygenta can now use SBU evaluation to assess the impact of their products on profitability and other criteria. They can also create a comparison matrix for their products. An example of how this can be done is using the McKinsey/GE Matrix method to evaluate the UK retailing market. This involves using market attractiveness and competitive strength as criteria to identify factors such as market size, growth, profitability, pricing trends, competitive intensity, risk of returns, opportunity for differentiation,

segmentation, and distribution structure.

The company can further classify its products based on market size, growth, profitability, pricing trends, and other factors that affect market attractiveness. By doing so, it can compare the relative success of its various product lines. Syngenta must answer if it can apply the theoretical constructs of Booz, Allen & Hamilton's decay curve of new product ideas. Booz, Allen & Hamilton's original research found that 58 new product ideas were needed to produce one potentially successful product. Even during the commercialization stage, there was a 50/50 chance that the product would not succeed. Syngenta needs to undergo a challenging R process to innovate based on this experience.

Booz, Allen and Hamilton discovered that creating a completely new, successful product is challenging. Therefore, it may prove difficult for Syngenta to continuously develop new products and instead focus on enhancing existing ones. This paper aims to explore the application of theoretical constructs regarding the product life cycle and life cycle extension strategies for Syngenta. Adopting a product-life extension strategy could significantly reduce the amount of materials and energy necessary to meet the demands of consumers. By implementing productivity estimates, it is possible to increase productivity per unit of resource used by more than nine times.

The increase in profitability and competitiveness is achievable through improved resource productivity. Booz, Allen ; Hamilton's "theory on the decay curve of new product ideas" suggests limited success for new products. Instead, implementing life cycle extension strategies would be more beneficial in research and development activities (Indigo Development, 2005). To understand the application of theoretical constructs on Rogers’ diffusion of innovations, it is important to note that a tipping point

exists where change spreads easily (Orr, 2003).

According to diffusion theory, innovation is communicated through certain channels over time among members of a social system. The most striking feature is that the decision to adopt an innovation depends heavily on the decisions of other members, resulting in an S-shaped curve. Under this theory, the decision to innovate requires a cost-benefit analysis and uncertainty is a major obstacle. Syngenta's research and development activities play a crucial role in the company's new product development process. By focusing on how R&D leads to successful new products from introduction to decline, the company can be guided by its objectives. (Leader Values, 2007) (Orr, 2003)

The company was advised to introduce new innovations at appropriate times in order to extend the maturity stage. Booz, Allen & Hamilton's theory of decay-curve of new product ideas suggested that improving on new products is a better way of introducing innovations instead of creating purely new products. However, the most crucial aspect for Syngenta is achieving its company objectives through the application of portfolio analysis principles while implementing these strategies (Byars, 1991; Cooper, L., 2000; Porter, 1980) (Smith, 1996; Haedrich, 1993).