Monsanto

Porters 5 Forces
Analysis

Syndicate 4
Fitriyaningsih (29116112)
Hari Widodo (29116133)
Lucky Kosasih (29116527)
Zamalludin (29116054)
 Suppliers Bargaining
Power

Specialty Chemicals Equipment

Quality and cost of the inputs are very
important. Affecting output quality and
production cost
Several suppliers and trend toward
backward integration.
Suppliers can act as competitor
Some raw materials are result of
significant R&D
Quality and cost of the inputs are very
important. Affecting output quality and
production cost
Patented components/pieces from
supplier
Supplier are often a sister firm of
equipment manufacturer

Medium High
Intensity of Rivalry
Among Competitors
Specialty Chemicals
Small numbers of top world-scale
companies.
High Industry growth.
Mergers and acquisitions in the
industry
There are strategic alliances among
company in the industry
Low switching cost
Medium
Equipment
Numerous competitors.
High Industry growth.
Mergers and acquisitions in the
industry.
Medium high switching cost for
Municipal Costumer
Low switching cost to Individual
costumer
High
 Threat of Substitute
Products

Specialty Chemicals Equipment

Many non-chemical of water treatment Growing Bottled water industry

technologies (biological/physical)
Low switching cost
Perception about quality of drinking
water
Various type of existing Water purifier
Used-equipment market
Low switching cost

Medium High
 Bargaining Power of
Buyers

Specialty Chemicals Equipment

Buyers are mostly organization Large number of Buyers for Individual

example: municipal and industrial Costumer
markets. Need an investment in education about
Consulting and Engineering firm water appliances (medium switching
usually decides which company the cost)
Government/Municipal will be
appointed.
Trend of competitor to consolidate both
supplier and engineering firm.

High Medium
 Threat of New Entrants

Specialty Chemicals Equipment

High economies of scale High economies of scale

Few Product differentiation (with Easy to have product differentiation
different technology) Many type of distribution channel
High Capital requirements
High Switching costs
Depend on Government policy
Moderate Expected retaliation (with
High R&D)

Low High
Recommendation
Porters 5 Forces Specialty Chemicals Equipment
Suppliers Bargaining Medium High
Power
Intensity of Rivalry Medium High
Among Competitors
Threat of Substitute Medium High
Products
Bargaining Power of High Medium
Buyers
Threat of New Low High
Entrants
Can be considered Unattractive