12 Mini-Case
12 Mini-Case
12 Mini-Case
The prospects for PotashCorp in the following years depend on a number of factors, including the
demand for fertilizers globally, the level of competition from other producers, and the ability of the
company to manage costs and expand its operations. The true value of PotashCorp will depend on
elements including its financial performance, market share, and growth potential, as well as broader
trends in the economy and industry.
Potash prices volatile for a variety of causes, such as an imbalance between global supply and demand,
changes in governmental regulations, and variations in currency exchange rates. The potash market is
also relatively fragmented, with only a handful of significant manufacturers controlling a sizeable portion
of the global supply, which can lead to more volatile prices.
It is challenging to forecast whether and at what level potash prices will stabilize in the future. The long-
term trend for potash consumption is predicted to be favorable due to population growth and increased
food demand; but, short-term price volatility are likely to persist. The dynamics of global supply and
demand, the efficiency of the supply chain, and changes in laws will all have an impact on the level at
which potash prices stabilize.
Cost effectiveness, product quality, and customer satisfaction should be prioritized by PotashCorp's
management when producing and marketing potash. The company should also invest in research and
development to improve its manufacturing processes and develop new products to meet shifting
consumer wants. PotashCorp should build strong relationships with its customers and distributors in
order to guarantee efficient and reliable product delivery.
5. How will the entry of mining giants like BHP affect the potash market?
By entering the potash market, large mining corporations like BHP will likely increase competition and
perhaps lower potash prices. However, how much of a difference BHP's entry will make will depend on
both how large and productive its operations are and general market fundamentals like global supply
and demand imbalances. PotashCorp needs to keep an eye on market changes and adjust its production
and marketing tactics as necessary if it wants to stay competitive.