Monsanto: Winning the Ground War

While products of disruptive innovation may lead to great business opportunities, market acceptance and readiness could be a life-or-death challenge. When Hugh Grant took the top job at Monsanto (MON) in May, 2003, the company's nickname in some quarters was "Mutanto." A growing chorus of critics warned that Monsanto's genetically modified plant seeds would wipe out the monarch butterfly, give people virulent new allergies, and reduce the planet's agricultural diversity. During the 12 months preceding Grant's elevation, Monsanto's stock price fell nearly 50% to $8 a share. In fiscal year 2002, the company lost $1.7 billion. Fewer than five years later, Monsanto is thriving. The company’s net income leaped 44% last year, to $993 million, on $8.5 billion in revenue. Monsanto shares, which closed at $104.81 on Dec. 5, have risen more than 1,000% during Grant's tenure. At 58.6, the company's price-to-earnings ratio is about two points higher than Google's (GOOG). Here is a fascinating story showing how Monsanto capture stakeholders’ needs and concerns and came up with its product mix and marketing strategy to attain market acceptance…


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