Table 4.
Components of sustainable competitive advantages of fertilizer companies.
| Component |
Access to all types of mineral resources |
Access to unique mineral resources |
After-sales services |
Digital solutions |
|---|---|---|---|---|
| External environment: | ||||
| Independence of the terms and conditions offered by suppliers | High quality products with low costs; | Standardized products | Standardized products | |
| Limitation of natural resources | Limitation of natural resources; oligopolistic market with large players | Need of differentiation (customers' request for services and solutions based on agronomic advice and analytics) | The importance of delivery in-time and reliability of supply | |
| Oligopolistic market with large players | Standardized products | Industry's mature; limited resources for competition and development in resource sphere; necessity of development new niches for rivalry | Services and solutions based on agronomic advice and analytics | |
| Internal environment: | ||||
| Resources | Mineral resources of all types (phosphate, potash and nitrogen) | Unique mineral resources | Qualified personnel (human capital) | Investments over 60 million USD per year |
| Production assets | Production assets | Wide distribution network | Own production, logistic, distribution and digital assets Qualified personnel (human capital) |
|
| Capabilities | Possibility to control all process – from exploration to sales to the end consumers | Production capabilities Technical and technological capabilities | Possibility to control all process – from exploration to sales to the end consumers | Possibility to control all process – from exploration to sales to the end consumers |
| Production capabilities | Brand Capability to get agricultural knowledge |
Data and analytical capabilities E-commerce capability |
||
| Core competencies | Strong industry knowledge and direct customer relationships across the value chain, providing unique insights on trends and developments in the agriculture industry | Integration of technology, innovation and data Support from people, products, extensive distribution network and systems |
||
| Support from people, products, extensive distribution network and systems | Competency in cybersecurity in conjunction with cybersecurity strategy, policy and framework | |||
| Result and contribution to reduction of the negative influence of external factors in the long run | Raw material independence of the company | Customers' loyalty due to production quality Low costs |
Increase customers' loyalty, increase sales, provide effective usage of fertilizers, grow the company's market share | Digital offerings increase customers' loyalty, drive down costs, reduce working capital and grow the company's market share |
Source: authors' compilation based on data from Table 3 and websites of EuroChem, Uralkali, Nutrient Company, Phosagro, Yara International and The Mosaic Company.