How Strong Are The Competitive Forces Confronting Deere Case Study

1286 WordsOct 5, 20176 Pages
Case 19 Assignment Assignment Questions: 1. How strong are the competitive forces confronting Deere in the global market for agricultural and construction equipment? Do a five-force analysis and identify the key driving forces and key success factors to support your answer. The five forces are: Supplier power. Deere managed to keep its other competitors from driving up the price because of suppliers pricing by building its own supply channels. In each of its six identified key regions Deere established manufacturing plants that supported its main production line. For example, the Company had three primary businesses: Agriculture and Turf Equipment, Construction and Forestry Equipment. Deere opened manufacturing plants across the U.S.A…show more content…
Competitive rivalry. It appears that Deere rivals pose no threat. There are more than 1000 business that produce farm equipment but Deere has carved out a stake in the market that makes them the big fish in the pond. Deere band and customers focus has proven to be a strategy that has kept them above all others. Product quality, innovation, customer service, branding, and performance were essential areas rivals competed on. Generally, price competition between the three rivals was low; as a result, competition centered on overall value instead of price. Deere aim at feeding the world has pushed them to seek what farmers need and make the equipment tailor to those needs. Threat of substitution. Deere aftermarket products along with its unique band color and logo makes its products special. Deere & Company’s farming equipment product lines were aimed at supporting the farming of every owner of Deere equipment and compelling the thought of ‘should’ve got a John Deere” among those who farmed with rival equipment. Threat of new entry. Competitor barriers to entry into the industry ranged from low to medium; however, with such fierce competition among the top three, entrants were surely challenged. 2. How have Deere’s business strategic choices strengthened or weakened its competitive position in the agricultural and construction equipment industry? Deere strategically aimed at supporting owners of farmers with Deere’s farming equipment and compelling the

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