Question

Based on research for Deere & Company, please explain how well is the company performing from a strategic perspective? Does the company enjoy a competitive advantage over its main chief rivals— (list the main rivals)? Does the company have a winning strategy? What specific factors account for why the company has been so successful (or not successful) over the past several decades? Do these factors have more to do with strategy, strategy execution, or leadership?

Main rivals are CNH Industrial N.V., AGCO Corporation, and Caterpillar, Inc. for the tractor and agriculture industry.

Answer 1

In the context of the given question, Deere & Company has been one of the fortune 500 companies, listed on NYSE, and has been in business operating successfully in the American markets for 100 years now. they have a diversified portfolio of activities, and offer a mix of products and services in Agriculture, Landscaping and Government etc.

They are tied up with esteemed clients, and dealers who sell their products to other consumers directly. From a strategic perspective, according to BCG Matrix, Deere & Company can be placed in the quadrant of Cash Cows, as they hold a high market share and a high market growth.

According to the Financials Morningstar ratings, the top competitors for Deere & Company are:

1. Caterpillar Inc.

2. Komatsu Ltd.

3. Hitachi Construction Machinery Co.

4. AGCO Corp.

Each of the above companies, are strongly positioned, however Deere & Company has direct competition with Hitachi Co. Though Hitachi is of Japanese background, they do have similar markets and target customers. However, the current stock performance puts Deere & company on top between them.

Some of the financial reports written by Investment advisors suggest that Deere & Company have more elite mix of products to offer to their customers, so the overall revenue earned is higher even if the number sold maybe less than its competitors. Some of the reasons understood is that Deere & company will need to diversify its market, and customer segments. In my understanding, a re-orientation of the strategy execution is required to further excel in this domain and for Deere & Company to sweep across as a market leader.