Strategic Management of Deere & Company

Running Head: MANAGEMENT
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Strategic management
7/24/2019

MANAGEMENT
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Contents
Q1. Five forces analysis of Deere Company and key driving and success factors.........................2
Q2. Deere’s business strategy choices strengthened or weakened its competitive position in the
agricultural industries................................................................................................... 2
Q3. Deere’s increase in scope is a part of its international strategy...........................................3
Q4. Deere’s business strategy producing good results...........................................................3
Q5. Business strategy recommendations in context to Deere’s management...............................3
References................................................................................................................ 5

MANAGEMENT
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Q1. Five forces analysis of Deere Company and key driving and success
factors.
Deere & Company has attained a higher market share of 35.4% in the world, amongst all the
agricultural and forestry equipment companies. The production in the industry is centred
amongst the major four companies i.e. Deere & Company, CNH industrial N.V., and AGCO
Corporation. Five forces analysis stated that entry of new entrants is low for the firm, and
Deere & company has the advantages of economies of scale. Moreover, Deere has earned
their buyer power over their rivals on the grounds of high customer loyalty. Another factor
behind this benefit is that the company fixed low prices per unit. Deere & company have
established their own supply channels, and strategy to focus on their customers acts as major
driving forces of the company. Besides, adoption of the new advancements in technology,
product innovation, quality control, and research and development, supplier and dealer
relations were found as the critical success factors of the company. Thus, these form a strong
competitive image of the company leading to growth in future years (Runting 53).
Q2. Deere’s business strategy choices strengthened or weakened its
competitive position in the agricultural industries.
The research stated that Deere aimed at making strategic choices to support the farmers with
their farming equipment, with the thought that rivals ‘should have got John Deere’. In this
way, the company strengthened their competitive position in the market and this approach has
attracted the customers of rival companies towards the products of Deere. The company
produces high quality, most reliable farm equipment, and offers the farmers better services
enables them to outperform other such firms in the industry. Therefore, these aspects state
about the strengthening of the position of the company from the perspective of their strategic
choices. Besides, focus on improvement in technology, competitive pricing, were also major
aspects of choice that strengthen the position (Chai, Yuan).
Moreover, the company ‘s senior management team has taken the decision to choose the
horizontal scope of the firm, by making changes in the organisational structure of the firm