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Does “Get Big Fast” Apply to the Nitrogenous Fertilizer Sector?
CASE Working Papers (2014)
  • Bryane Michael
Abstract
The nitrogenous fertilizer segment hardly represents the most glamorous sector – even if it represents one of the most important. Simply put, we could not eat (or live) without nitrogen feeding our crops. Yet, economists have paid little attention to modelling this boring yet vital market segment. In this paper, we provide a model of the nitrogenous fertilizer sector (SIC codes 2870-3). We develop a simple dynamic model of segment profitability as a function of revenue in a differential equations framework. We show that any strategy to “get big fast” (in revenue terms) depends on structural factors affecting firm profitability. Our models and results should serve other analysts studying the fertilizer industry and potentially a range of other sectors – in the US and in places like Poland.
Keywords
  • Terra Nitrogen,
  • Nitrogeneous Fertilizers
Disciplines
Publication Date
2014
Citation Information
Bryane Michael. "Does “Get Big Fast” Apply to the Nitrogenous Fertilizer Sector?" CASE Working Papers (2014)
Available at: http://works.bepress.com/bryane_michael/97/