Recommendation Plant Nutrients Inc. (PNI) is operating in an industry requiring constant innovation in order to combat declining prices. In the case of PNI, it is critical that Brian Dunwoodie acknowledge where the company’s competitive advantage lies, and continue to leverage PNI’s ability to sell to small farms well. PNI should incorporate a seed business into its current business model through a strategic partnership with Larson Seeds, giving PNI the ability to offer a complete agronomic input package. The addition of a seed business will position PNI for continued success with small farms, as well as provide a tool to grow their business with medium farms, which account for the majority of crop production in PNI’s market area.
ixed costs Push Wholesale Business Small number of dealers to target Little contact required to make sale

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Lowering Prices

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Customers like getting “more for less” Assumed increase in volume

Add A Seed Business

• Provides assumed profitable growth • Allows for improved customer service • Seed sales expected to grow due to new

1 Assessed in terms of value to farmers – receiving “more for less”

Weaknesses • Only have small opportunity for expansion before blending capacity is exhausted • Sales consultant retraining to better meet needs of large farms • Have different needs than other farms – would need to reassess marketing approach • Shift toward dealers adding their own blending capacity or dropping product line • Wholesale business is in decline – growth opportunity is limited • Premium pricing communicates quality • Questionable positive impact on profits • Little knowledge of effects of lower prices • Pioneer has established market presence already with seed corn

2 Deemed seed business to be rare because although many farms have a seed provider,