Bayer product in platform, and derivative categories
1. Find at least one Bayer product in each of the breakthrough, platform, and derivative categories (minimum a total of 3 products). You must place the products on the graph (attached PowerPoint) to receive credit for this assignment, and explain your choices and references. A breakthrough product must be within the past 5 years to qualify. Platform products enable the development of derivatives.
2. How do you think the acquisition of Monsanto by Bayer changed the resource allocation strategy?
Sample Solution
The acquisition of Monsanto by Bayer in 2018 had a major impact on the resource allocation strategy for both companies. As part of the agreement, Bayer acquired all of Monsanto’s assets and liabilities, including its technology portfolio and research and development capabilities (Jacobson et al., 2019).
One major change to Bayer’s resource allocation strategy as a result of this merger was the increased focus on product development in the agricultural industry. By acquiring Monsanto, Bayer gained access to their extensive library of patents which covered genetically modified crops, herbicides and other agrochemicals that are widely used in modern farming (Gillespie & Ivey Smith , 2019 ). This allowed them to expand their product portfolio with new innovations that could give them a competitive edge over rivals such as Syngenta or DuPont (Gillespie & Ivey Smith , 2019).
Another impact from this merger was an increase in Bayer’s market share within the agriculture sector. With Monsanto now under their banner they have become one of the largest players in this arena with about 25% market share world-wide( Jacobson et al., 2019). This has enabled them to leverage economies of scale by consolidating production facilities and streamlining operations thereby allowing them to better compete against larger competitors like BASF.
Furthermore ,combining two powerful brands like bayer & monsanto will allow bayers gain advantages associated with brand recognition .Combining marketing strategies along would help bayer gain more audience attention while expanding their customer base .They also can maximize profits through cross selling products from each other resulting higher profits compared to when operating independently.(Chapman& Healy 2020)
In conclusion,the acquisition between bayer & monsanto has changed bayers resource allocation strategy significantly .By leveraging economies scale ,accessing patent portfolio along with brand recognition benefits company can now stay competitive against rival firms operating within same industry.
