Summary
Rapid introduction of the product, approvals by FAO and WHO and registration in 45 countries are strong points in favour of DuPont. There should not be any problem with EU and US registrations. Monsanto, with recent bad reputation on GM seeds may not be a difficult competitor. Syngenta is lesser known in many countries. Thus it cannot compete very effectively in all markets. But stiffer competition is likely from leading country-specific insecticide firms in certain markets.
Analysis
DuPont appears to have certain strong points in their favour for excellent market positioning of their new Rynaxypyr.
1. The company is one of the global leaders in this segment.
2. It has strong brand image.
3. It has no serious adverse record of environmental issue.
4. The product has been introduced into the global market very rapidly which takes competition by surprise and they need time to react. This gives leading edge for DuPont.
5. The product has already received approvals in a number of countries, including seven EU countries and the US as claimed. When seven EU countries have approved the product already, it can pave way for rest of the EU to follow the suit. Hence, getting registration in EU should not be a problem. It is claimed that registration has been obtained in the US.
6.Most importantly, FAO and WHO approvals facilitate the spread of this product to more countries, especially to developing countries like India, where the crops mentioned are cultivated in large areas.
These advantages put DuPont in a good position to take on competition effectively.
Syngenta is also a leading company, but not very well-known in many countries, especially in certain Asian markets. On the other hand, Monsanto has a significant presence in most countries. Of late their reputation has been affected by GM seeds (Bt cotton, brinjal) due to adverse publicity given by some media and opponents of GM technology for crop improvement. These factors make the two companies weak competitors. But other companies producing insecticides, especially country-specific firms like Rallis in India can pose local challenges for DuPont.
