Industry Analysis

Discuss about the Report for Clients and Markets.

IBM is the well–known software company that provides a variety of software solutions to various companies. IBM already exists in Australia and is providing the software solution and serves to the software companies. The agriculture industry is considering as a new industry where IBM can be involved with new software. IBM can provide new software for precision agriculture in the agriculture field. There is a lot of scope of precision technology in agriculture industry of Australia. To provide the best software solution and services, the agriculture industry has chosen by IBM.  Precision agriculture technology is not used yet in Australia. IBM is going to introduce the new precision agriculture technology in Australia or the first time.

Precision agriculture technology is the smart way to increase the production of the food and to increase the crop production. Precision agriculture is also known as the satellite farming. Precision farming is a concept of management to measure and observe the intra or inter filed crops variability. Precision means the precise applications and the correct input (Castle et al 2016). There are various inter and intra variability factors such as drought, sun light, rain and etc, so to maintain all these factors using satellite, this precision technology of agriculture is used. This technology also decides the correct input factors such as fertilizers, water and the suitable climate for the crops. This type of agriculture by using satellite is known as the precision agriculture. In this report, the possible services that can be provided by IBM to the agriculture are highlighted In this paper, IBM is choosing as the business 2 business organization. IBM is providing the precision farming technology to an agriculture business industry. Agriculture industry will further provide these technologies to the customers and other consumers. IBM is new in this precision agriculture industry that is providing the precision farming technologies in Australia. It is very difficult to establish a successful business so all the strategies are defined above in this report (Aubert et al 2012).

IBM is using weather modeling and the precision agriculture technology for the help of the farmers. The researcher of IBM and the other engineers Ulisses Mello of IBM researches that the daunting challenges lies under the real time data gathering and analysis. The researchers are researching how this precision agriculture technique can be helpful for the farmers to maximize the food production and how to reduce the cost. The scope of agriculture industry is very wide in Australia.

Feasibility Report

The question is arising that IBM is feasible to enter in agriculture industry of Australia or it not feasible? According to the researchers, IBM is able to provide the best solution to the agriculture industry for precision farming and it shows the viable economic profit. IBM is also able to provide the best robotics and other software solution with the help of its experts to for the precision agriculture. It is helpful to increase the overall production at less cost. So, this decision is feasible. IBM is feasible to enter in the agriculture field which provides the best precision agriculture technology. IBM is feasible to enter in the agriculture field (Young and Loomis 2014) .

There are many competitors in the precision agriculture market. There are many competitors such as Crop Matrics and iteris in the market for IBM, so, there is a need to provide the best precision technology. Competitors are working hard for competing for each other. There is a high competition in the precision agriculture business. If IBM is able to compete its competitors by its product then it is very helpful for the sales. It directly affects the sales and sales will increase.

There is a great competition in the precision agriculture market. Michael Porter and James Heppelmann look forward to the changes in the precision agriculture technology. They look a deep study in this field. The Times Alexandra Frean also provides OnFarm’s software to the agriculture industry. This software helps to collect all the input from the different sources and then inspect those input factors and feeds back to the producers. There is a high competition in this field. So, there is the need to serve advance software to the agriculture field in Australia. IBM is ready with its new software technology to enter in the precision agriculture  (Lin, et al 2015).

IBM is providing precision agriculture technology that is based on software developed by IBM developer. Precision farming technology is developed for the forecasting of weathers in short time-span. It works using the high-performance computing and it forecasts weather in a short span of time(MacDonald et al 2013). It is provided by the IBM to the agriculture industry to provide the high-resolution predictions of weather. It helps to predict the velocity of the storm and the wind velocity (Jensen et al 2014). This is also used for the determination of time which a plant will take to grow and the time for irrigation and harvest crops. It works on the basis of dynamic environmental conditions for the individual farming locations.

Size of Industry and Competitors

There are various factors that are affecting the agriculture industry that aare technology, market position, labour, capital and environment factors and climate. The main issue is the climate of the place which affects the agriculture field very much. Environmental factrs are the physical factors including climate and the soil. Climate is also the main issue such as the wrong measurement of the temperature and the water also. If there is no correct measurement of water, soil, that will affect the agriculture industry. Government is also the reason for affecting the agriculture industry. Government affects the crops farmers and subslidies also. So by using the IBM services, any precision agriculture industry can gain high profit (Rubatzky 2012).

PESTLE

PESTLE stands for Political, environmental, social, technological, legal, economical) analysis is required for the agriculture industry to track the environment operated to develop the project. PESTLE analysis is referred to the PEST analysis. This is used by IBM as the tool to develop the precision technology to track the environment and to forecast the weather.

There are many value factors that can affect the business. The partnership with the agriculture industry should be very transparent (Tittonell and Giller 2013). Partnership of IBM with another agriculture industry helps IBM to enlarge its business and to serve the service in the best way. The partnership can be helpful for the company to innovate new precision technology.

An innovation of the precision farming technology is also a value affecting factor. It should be very clear that what a company needs to innovate. A proper market research should conduct before the innovation of the product. An innovation of the precision farming technology tools, developed by the IBM experts.

There should be proper management for the situation of risk. If any risk can be the failure of the devices and the software, so the proper management is very necessary as well as time management. The failure of the devices is the main risk so /IBM checks all the devices and the proper services can be maintain at time to time.

IBM updates its software according to the time. If a weather forecasting takes place then it is necessary to manage the time. Time management for sensors is very important to value affecting factor. So, all the devices should be proper managed.

Competitors:

IBM is providing the precision agriculture technology but there are competitors in the market. There are various companies, who are providing the precision agriculture farming technology such as Crop Metrics, Iteris, Agribotix and Granular. These all are the agriculture firms which are providing the precision farming technology. There is a lot of competition in the market among all these companies. These all are the real competitors which affects the sale if precision farming products of IBM. IBm needs to enlarge its services to increase its value and size in the market.

Product Type

The ability of different precision farming system to further sustainability can evaluate across a wide range of potential dimension. The concept and science of the precision farming sustainability in the terms of farming impacts and approaches of the economic security and food security is maintain the same relationship among the competitors. They all are concern for the economic and food security. They all are working for the new approaches to make its technology upgradable. These all the part of completion is maintaining the competitive relationship.

 Figure 1: Diagrammatic representation of the companies

(Source: Young 2014)

The production of the food can be maximized in the less cost (Toffler 2013). The precision agriculture is increasing day by day. The best quality sensors, they are providing as the segmentation approach. They are providing soil sensor, water and climate sensor for competing for each other. So, IBM is providing the deep thunder technology for the precision agriculture. The diagrammatic representation shows the process of the precision technology (Franzen and Mulla 2015). The competition and success of the family depend on the factors which are high lighting in the given diagram.

Figure 2: Marketing process for IBM industry

(Source: Lam 2014)

Many organizations in the Australia are going to use this software for the precision such as eBee Ag, Lancaster, Crop Mapper and Quand Indago. These all are the agriculture firms wich will buy the precision farming technology from IBM. As, IBM is a business to the business organization so, it provides robotics and satellite facility to the agriculture industry. It also reduces the lack of food. It will also contribute to the economic value of the company. It is an opportunity for the agriculture industry to increase their annual revenue. So the agriculture firms adopt this technology and will serve to the local farmers in Australia(Berthon et al 2012). So, it is very helpful for the agriculture industries as well as to the farmers also. IBM also provides the GPS sensors and the big data analysis to save the water and to improve the crops production.

SPAA will help to promote this IBM technology in Australia. SPAA is the member in Australia that helps to promote the new development in the precision agriculture field. It is the non-profitable organization group in the Australia that helps the agriculture industry to use the new precision agriculture technology (Drucker 2014). Is also adopts the development in the organization field. The aim of this organization is to create awareness among the people for the precision agriculture in Australia. The other aim of this organization is to maximize the sustainability of the agriculture system using precision agriculture technology (Lam 2014

Factors Affecting the Agriculture Industry

Segmentation is the strategy to implement the new strategy to fulfill the business target by dividing the target into the groups of consumers, countries and business that belongs to common need and interest. Macro segmentation is used by IBM to achieve the target to buy products like agriculture institute, research centres, farming companies, agriculuture product manufacturing companies. Macro segmentation is the approach of the marketing is a strategy to fulfill the needs of the consumer’s needs for the products and It is used for large scope business. AS, IBM is a b2b company so, there is need to implement the macro segmentation.

It helps a business organization a lot to allocate the efficient market resources and to attract the farming companies to make purchase its product. The main aim of the segmentation is to meet the unique requirements of the customers segments. If, market researchers have the proper segmentation knowledge, it helps the business marketers in focusing the product development efforts. The market segmentation helps the business marketer to implement the effective and appropriate market strategy for the success of precision agriculture technology (Reidsma et al 2015). Segmentation is also helpful to minimize the risk associated with the variation in the market.

This type of agriculture (Precision agriculture), the precision farming technology is segmented by IBM on the basis of many applications in the market of agriculture. The precision software is segmented on the basis of the technology used for the agriculture such as GPS, satellite and other robotics application (Duffie and Singleton 2012). IBM needs to implement the macro segmentation approach to serving its software to the agriculture industries such as Ouand Indago and Ag Eagle and these agriculture industries needs to implement the micro strategy to provide the best service to the consumers and customers also. The sensor also further segmented into various other applications such as water sensors, soil sensor and the climate prediction sensors. This process of the sub segmentation of necessary devices and strategies are known as the marketing segmentation approach (De Baerdemaeker 2013).

Overshoot marketing takes places when a product is too good in the technical terms. The high technologies used for the development of the product and the output of that particular product are also good. But customers want to purchase some new product they are known as the overshoot customers.

Undershoot customers are those who want to try some new goods when the last products are failed. When the result of the previous product is not satisfactory for the customers then the customer purchase new goods, that type of customers known as undershot customers.

Value Factors

New buyers are the customers when some customers never tried goods and purchase that product for the first time to check that product result, those customers are known as new customers.

In the case of precision agriculture technology, IBM will market with the undershot and buyers. It will be beneficial for IB to market with all the customers (agriculture industry). Undershot agriculture industry can be beneficial for the IBM. If, IBM provides the best precision technology to the undershot and new buyer, regular customers can be maintained by IBM. They will prefer to buy the product of the IBM which will increase the market value of IBM for the precision farming technology.

A marketing plan is the key of success for any business. A marketing plan is very necessary for the success. To implement the marketing plan, a successful business can be established. There is the need to implement the market plan by IBM.  The marketing plan should in the documented form in the reference to the business. So, there is need to make the plan and update it in the written form to execute the market industry (Robertson et al 2012). IBM software can be served to various new agriculture companies. The market should be practical and real. Only by implementing a suitable and well-researched program, a long term customer/business relationship with the agriculture industry can be established.

The marketing objects of the IBM are to provide the best weather modeling for the precision agriculture. To make the best to precision farming agriculture is the main objective of IBM. To provide the weather modeling by forecasting the climate is the objective of IBM. IBM is providing the best solution to reduce the complexity in the farming. To reduce the cost of food production and to maximize the production is the objective of the IBM. To enlarge the business and make the reputation in the agriculture industry is another objective of the IBM.

So, IBM is going to provide the precision farming technology to the agriculture industry. The marketing objectives are based on the weak and strong points. The marketing objects also depend on the business environment that is operated by the IBM to serve its services to the agriculture company. The objectives of the company should be chosen very smartly.  One should be very specific for the objective and the plans implemented by them in business (Haimes 2015). The objective of the marketing should be measurable and achievable. The objective should be practical which exists in the real world. There should be a deadline to sustain a target. The market objective is related with the marketing plan. If, there is proper marketing plan then it is easy to achieve the marketing objectives.

Partnerships

Four P’s are product, pricing, place and promotion:

IBM is the new industry that is going to serve the precision software technology to the agriculture industry in Australia. There is the software product or the services, so according to four P’s, one is a product. The precision farming technology is helpful for the IBM to achieve its objective, by providing the best precision technology.

The second p is the price factor. IBM will mark the price tagline for the product and services, it is providing. There should be a certain amount of cost fixed for the GPS, sensor and the software provided by the IBM. IBM can charge a fixed price for the services and products. Less price of the production will attract the agriculture industry towards the technology of the IBM.

Third P stand for the place, So, IBM choose the Country Australia for its precision farming technology business. There should be a right place for the business so that the cost of the delivery will be less. There is wide scope of precision farming in Australia so it will help for the agriculture industry to sustain is goal.

The fourth P stands for the promotion. A proper promotion by IBM is necessary for the successful turnover through thus business  (McNeil et al 2015). An advertisement of the products and the services provided by IBM is a good idea for the promotion. Sales can be increased by an effective promotion.

 Implementation of the marketing plan is very necessary. Each step of the market strategy should be well-defined and be realistic. So that, the marketing strategies can be implemented easily. There is also need to make budget which cost in making the plans. There will be a certain time given to the employees to achieve the success.

Conclusion:

In this paper, IBM is choosing as the business 2 business organization. IBM is providing the precision farming technology to an agriculture business industry. Agriculture industry will further provide these technologies to the customers and other consumers. IBM is new in this precision agriculture industry that is providing the precision farming technologies in Australia. It is very difficult to establish a successful business so all the strategies are defined above in this report.

Reference:

Aubert, B.A., Schroeder, A. and Grimaudo, J., 2012. IT as enabler of sustainable farming: An empirical analysis of farmers’ adoption decision of precision agriculture technology. Decision support systems, 54(1), pp.510-520.

Innovation

Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), pp.261-271.

Castle, M.H., Lubben, B.D. and Luck, J.D., 2016. Factors Influencing Producer Propensity for Data Sharing & Opinions Regarding Precision Agriculture and Big Farm Data.

De Baerdemaeker, J., 2013, March. Precision agriculture technology and robotics for good agricultural practices. In Bio-Robotics (Vol. 1, No. 1, pp. 1-4).

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Duffie, D. and Singleton, K.J., 2012. Credit risk: pricing, measurement, and management. Princeton University Press.

Franzen, D. and Mulla, D., 2015. 1 A Marketing strategy of IBM for Precision Agriculture. Precision Agriculture Technology, p.1.

Haimes, Y.Y. ed., 2015. Risk modeling, assessment, and management. John Wiley & Sons.

Jensen, K., Larsen, M., Nielsen, S.H., Larsen, L.B., Olsen, K.S. and Jørgensen, R.N., 2014. Towards an open software platform for field robots in precision agriculture. Robotics, 3(2), pp.207-234.

Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.

Lin, C.C., Pankanti, S., Ashour, G., Porat, D. and Smith, J.R., 2015. Moving camera analytics: Emerging scenarios, challenges, and applications. IBM Journal of Research and Development, 59(2/3), pp.5-1.

MacDonald, J.M., Korb, P. and Hoppe, R.A., 2013. Farm size and the organization of US crop farming. US Department of Agriculture, Economic Research Service.

McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Reidsma, P., Wolf, J., Kanellopoulos, A., Schaap, B.F., Mandryk, M., Verhagen, J. and van Ittersum, M.K., 2015. Climate change impact and adaptation research requires integrated assessment and farming systems analysis: a case study in the Netherlands. Environmental Research Letters,10(4), p.045004.

Robertson, M.J., Llewellyn, R.S., Mandel, R., Lawes, R., Bramley, R.G.V., Swift, L., Metz, N. and O’Callaghan, C., 2012. Adoption of variable rate fertiliser application in the Australian grains industry: status, issues and prospects. Precision Agriculture, 13(2), pp.181-199.

Rubatzky, V.E. and Yamaguchi, M., 2012. World vegetables: principles, production, and nutritive values. Springer Science & Business Media.

Tittonell, P. and Giller, K.E., 2013. When yield gaps are poverty traps: the paradigm of ecological intensification in African smallholder agriculture. Field Crops Research, 143, pp.76-90.

Toffler, A., 2013. Revolutionary wealth. New Perspectives Quarterly, 30(4), pp.122-130.

Vermeulen, S.J., Challinor, A.J., Thornton, P.K., Campbell, B.M., Eriyagama, N., Vervoort, J.M., Kinyangi, J., Jarvis, A., Läderach, P., Ramirez-Villegas, J. and Nicklin, K.J., 2013. Addressing uncertainty in adaptation planning for agriculture. Proceedings of the National Academy of Sciences, 110(21), pp.8357-8362.

Young, R.A. and Loomis, J.B., 2014. Determining the economic value of water: concepts and methods. Routledge.