Question

Please show the Strategic Group for the main product and its analysis for the Deere & Company.

Answer 1

Buyer power. Deere & Company was world’s leading manufacturer of agricultural & forestry equipment, with a market share of 35.4 percent in 2013. Primary competitors in tractors & agricultural equipment industry were CNH Industrial N.V the maker of Case and New Holland tractors & construction equipment; AGCO Corporation, the maker of Massey Ferguson and other brand; and Caterpillar, Inc. Deere owns buyer power over its rivals. What is unique about owning a Deer is everything comes complementary by colour & fit? Farmers who own Deere equipment are loyal to the brand and would only buy parts that fit the brand name. Deere have expanded their business to international markets where they strengthen their band by providing humanitarian support through its corporate responsibility programs

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 big fish in pond. Deere band & customers focus has proven to be a strategy that has kept them above all others. Product quality, innovation, customer service, branding, & performance were essential areas rivals competed on. Generally, price competition between the three rivals was low; as a result, competition cantered on overall value instead of price. Deere aim at feeding the world has pushed them to seek what farmers need & make the equipment tailor to those needs

Supplier power. Deere managed to keep its other competitors from driving up 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 in such area as each plant designed to manufacture different parts. Internationally Deere opened manufacturing plants in key markets such as China in support of construction equipment, engines, and large farm equipment. Apart from raw material to make parts Deere doesn’t depend on external supplier in support of its equipment. They specialize in making everything deer this is evidence by all supporting parts and equipment stamped with the green colour and Deere logo on them.

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