Case Study of ventures in Salt: Compass Minerals International

BUS 5117 Case Study of ventures in Salt: Compass Minerals International

Professor Karl Thompson

University of the People

Case Study of ventures in Salt: Compass Minerals International

Introduction

Compass Minerals is a main maker of minerals, its products including salt, magnesium chloride,

sulfate of potash and other plant sustenance items. Salt was one of the most generally utilized

minerals on the planet with a large number of utilizations. In USA, salt is basically utilized for

deicing, food&water handling, and agriculture businesses. Compass Minerals is a main salt and

salt related products provider in USA and it is a stand-alone company. As the organization was

planning to open up to the public and pull in more investment, Compass Minerals CEO was

taking a shot at techniques of pitching potential investors. He needed to give a solid case to his

investors demonstrating that Compass Minerals will convey what would be expected of his firm

as it was turning into a public trade company (compassminerals.com)

Case Analysis

Competitive Moves

A competitive move is an advantage that enables a company to outperform its competitors. It

allows a company to achieve its superior margins compared to its competitors.It generates values

for the company, its investors and its shareholders. A successful competitive should not be easily

duplicated, otherwise the company would be losing its winning advantage and it won’t be

considered as a competitive move. Competitive moves for companies include: first mover,

disruptive innovation, footholds, blue ocean strategy and Bricolage. In the case of Compass

Minerals (Ketchen, D & Short, J. 2012.P223). I would suggest the company to go with

Bricolage, this is a concept borrowed from the arts, similar like blue ocean strategy, it stresses

moves to create new market. Bricolage uses the available resources and materials. It is a concept

of making the best of what’s around. Bricolage requires business leaders to be creative since it
Case Study of ventures in Salt: Compass Minerals International

accurate captures the challenges that many businesses face from time to time. Compass Minerals

in this case was going to public, this phase was exciting as well as challenging. Compass

Minerals need to prove its continuous high performance to its potential shareholders and

investors, meanwhile it is also facing major competitors like Bayer CropScience, Yara, Loveland

products and Rosen’s Diversified (craft.com). Bricolage will help Compass Minerals to minimize

its cost while expanding its business, this way it can keep Compass Minerals’ product price

competitive compared with other competitors.

Cooperative Move

Compass Minerals Internal Inc.produces and sells salt, specialty plant nutrition and chemical

products primarily in the United States, Canada and the United Kingdom. It operates through 3

section: salt, Plant Nutrition North America, and Plant Nutrition South America. Compass

Minerals can also benefit from cooperating with one another because of its vast size. Cooperative

enables companies like Compass Minerals to strengthen its advantages. A cooperative business

relationship requires parties to take on risks and face challenges, it help reduces risks but it also

increases risks of revealing commercial secrets to other companies. Cooperative moves include

joint ventures, strategic alliances, collocation, Co-opetition (Ketchen, D & Short, J. 2012.P238).

I would suggest Compass Minerals to go with Co-petition. Co-petition is a relatively new

concept. It is referred to a blending of competition and cooperation between two organizations.

This high lights a couple interaction of the two different situations and it is becoming

increasingly popular in many industries. Compass Minerals is a stand-alone company with

subsidies. Its subsidy North American Salt was the third largest salt producer in the country. Co-

petition allows companies like Compass Minerals to work together without revealing its own
Case Study of ventures in Salt: Compass Minerals International

business secrets. Both organizations are collaborating & competing. Co-petition is widely

applied in tech field today. Businesses which require software engineering and technology needs

a remarkable circumstance. Two organizations may have integral qualities, and in this situation a

Co-petition understanding can be formed. Co-petition between two organizations can help

expand the opportunity of client development inside each organization. Salt's chemical properties

as a preservation agent and its capacity to "seal" had started to open up a scope of new uses for

salt mines, from stockpiling to the removal of atomic waste. To explain this issue and turn salt's

advantages to its best, Compass Minerals needs to work with more tech companies, and also

remains as a reputable stand-alone company.

Conclusion

Managers in Compass Minerals ought to consider applying the competitive move and the

cooperative move as indicated by their circumstance. Compass Minerals has been in America for

quite a while. Managers may decide how to act quickly by acquainting some spearheading

thoughts with the current market like producing new natural deicing products. Managers will

also need to go with a more cooperative move by setting up a positive win-win co-request

relationship with its rivals. If managers of Compass Minerals can choose the strategic move

accordingly based on the situation, the firm will be moving in the right direction.
Case Study of ventures in Salt: Compass Minerals International

Reference

Ketchen, D & Short, J. (2012). Strategic Management: Evaluation and Execution. This book is

licensed under a Creative Commons by-nc-sa 3.0 license.

• Chapter 6

What is a Competitive Advantage? Retrieved from https://corporatefinanceinstitute.com/

resources/knowledge/strategy/competitive-advantage/

Compass Minerals. Retrieved from https://www.compassminerals.com/

Fern Fort University. Compass Minerals International Inc. Porter Five Forces Analysis. Retrieved

from http://fernfortuniversity.com/term-papers/porter5/analysis/101-compass-minerals-

international--inc-.php

Compass Minerals Competitors. Retrieved from https://craft.co/compass-minerals/

competitors#:~:text=Compass%20Minerals%27s%20top%20competitors%20include%20Bayer,

CropScience%2C%20Yara%2C%20Loveland%20Products%20and%20Rosen%27s%20Diversifi

ed.

Compass Minerals International Stock Forecast, Price & News

Retrieved from https://www.marketbeat.com/stocks/NYSE/CMP/?

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