Calgene Inc.: Marketing
1. Do a traditional SWOT analysis (strengths, weaknesses, opportunities, and threats) of Calgene's situation in the spring of 1995.
Strengths
R&D abilities in bioengineering technology
Competitive advantages in bioengineered product licenses and regulatory agency approval to market tomato (and other bioengineered products)
Competitive advantages in already test marketing "MacGregor's Tomatoes"
Competitive advantage of being "closer" to mass marketing its tomato
Success of industrial and edible oils and cotton seed divisions
Bioengineering licensing agreements
New "soft picking, packing, and shipping" methods
Operating plants with new "soft" picking, packing, and shipping systems Weaknesses
High costs associated with operating "soft" p/p/s systems
Management inexperience with "commercializing" products developed by R&D
Bioengineering technology base may already be outdated
Questionable knowledge base about acceptability of bioengineered products
Question of whether "taste tests" of MacGregor's Tomato ever happened
Still unproven ability to mass market a consumer product
No established relationships with "resellers" in fresh tomato market
Threats
Customer acceptance or lack of acceptance of bioengineered fresh consumable products
High operating costs associated with "soft" p/p/s process may require "premium" pricing at point of sale
Perceived advantages of "MacGregor's Tomato" does not occur at either reseller or consumer level
Competitor tomato "Endless Summer" based on new technology may have superior product features
Threatened boycott of bioengineered products like "Chefs" example
Opportunities
First into new markets generally establish lion's share of market
Size of market for fresh tomatoes is huge; even a small market share could mean large revenues for Calgene
Loads of theoretical opportunities for additional bioengineered fresh producei.e., corn, etc.
Two other divisions
Strengths
R&D abilities in bioengineering technology
Competitive advantages in bioengineered product licenses and regulatory agency approval to market tomato (and other bioengineered products)
Competitive advantages in already test marketing "MacGregor's Tomatoes"
Competitive advantage of being "closer" to mass marketing its tomato
Success of industrial and edible oils and cotton seed divisions
Bioengineering licensing agreements
New "soft picking, packing, and shipping" methods
Operating plants with new "soft" picking, packing, and shipping systems Weaknesses
High costs associated with operating "soft" p/p/s systems
Management inexperience with "commercializing" products developed by R&D
Bioengineering technology base may already be outdated
Questionable knowledge base about acceptability of bioengineered products
Question of whether "taste tests" of MacGregor's Tomato ever happened
Still unproven ability to mass market a consumer product
No established relationships with "resellers" in fresh tomato market
Threats
Customer acceptance or lack of acceptance of bioengineered fresh consumable products
High operating costs associated with "soft" p/p/s process may require "premium" pricing at point of sale
Perceived advantages of "MacGregor's Tomato" does not occur at either reseller or consumer level
Competitor tomato "Endless Summer" based on new technology may have superior product features
Threatened boycott of bioengineered products like "Chefs" example
Opportunities
First into new markets generally establish lion's share of market
Size of market for fresh tomatoes is huge; even a small market share could mean large revenues for Calgene
Loads of theoretical opportunities for additional bioengineered fresh producei.e., corn, etc.
Two other divisions