MARKETING AND INNOVATIONS IN CHEMICAL AGRI-INDUSTRY THROUGH THE SWOT AND PEST ANALYSIS

Abstract

This paper is dedicated to the reflection of innovations in the mirror of marketing. The best way to do so is to consider specific product, company or market. The production of mineral fertilizers is one of the most important branches in the chemical industry. The potash market is exceptional in characteristics, which make it an interesting object for marketing analysis with emphasis on innovations. The comparative marketing analysis of main potash producers has been performed in order to delineate the best potash supplier for EU market. SWOT and PEST analysis as well as Porter's five competitive forces model were used. It has very important economic advantages aroused from Canadian tax system, facilitating the company to work up a market by lowest prices for potash fertilizers. However, transportation costs to EU market are relatively large. Recently Uralkali started massive retrofit installation, completed the takeover process of Silvinit, which has set company to the second place in the international potash market. The main disadvantages of the company are relatively low quality of the product and high transportation cost to EU market. On the other hand, Belaruskali remains to be the best supplier for EU countries from the point of geographical location and product quality, since German K+S cannot cover all EU market demand. Despite highly unfavourable political environment, the main company's asset is high quality potash fertilizer. Recently, a radical innovation - the balling granulation - has been introduced by Belaruskali, which allowed obtaining the product with superior characteristics. Finally, the estimation of the economic effect for balling granulation has been performed.