Deere and Co. Swot Analysis

DeVry University Pomona, California Swot Analysis of throne Deere symbol on NYSE DE By Eduardo Elizarraras 11307 Spy Glass Hill Road, Whittier, CA 90601 626-246-4747 emailprotected com Submitted in Partial fulfillment of the Course Requirements for Introduction to melody BUSN 115 Professor Tom Donini March 21, 2010 Company Profile john Deere (Deere & Company NYSE DE) is a world attracter in providing technologic eithery advanced machinery for agriculture, forestry, construction, lawn and turf c atomic number 18, and all sorts of landscaping. rear Deere also provides financial services worldwide.Deere & Company as it is known on the New York persuade Exchange manufactures and markets severe machinery and engines used in heavy equipment. The fraternity was founded by a blacksmith named basin Deere. tin can Deere moved from Vermont to Illinois and immediately set up a blacksmith shop in 1837. prank Deere developed a better plow for the tougher soil found in the Midwest an d from there toilette Deere was established. Today fanny Deere Construction & Forestry produces much than 120 machine models and distri hardlyes its construction, forestry and worksite products by means of a network of more(prenominal) than 1,300 dealer locations worldwide.The company employs more than 50,000 people worldwide. John Deeres Mission Statement as listed on their homepage website. It is listed as a Strategy Statement. We aspire to distinctively serve customers those linked to the land through a great business, a business as great as our products. To achieve this aspiration, our strategy is * Exceptional operating feat * discipline SVA growth * Aligned high-performance teamwork Execution of this strategy creates the distinctive JohnDeere Experience that ultimately propels a great business and, for all with a stake in our success, deliversPerformance That Endures SWOT Analysis of John Deere Strengths * Highly recognized and respected brand * Market dominance for hea vy equipment and machinery Weaknesses * High scathes * little realise in non agricultural products Opportunities * John Deere Credit * Wind Technology Portfolio Threats * cat * Weaker economies worldwide * Seasonal Business of agriculture Company Strengths Highly recognized and respected brand John Deere has established itself as the draw in agricultural products worldwide since the 1960s.John Deere green has become a color. Easy to recognize and distinguish itself from the competition. selling slogan on television commercials effectively ties in the logo with the company, Nothing runs like a Deere. tally to Encyclopedia Brittanica Online there was a surge in tractor sales in Ireland in 2006 and the sales leader was John Deere. This leadership in sales demonstrates the market dominance of the John Deere brand. Company Weaknesses High Prices/Less make in non agricultural products John Deere tractors and other equipment are generally priced higher than other quipment. John Dee re brand pressure washers at Lowes Home Improvement Warehouse exists 30 to 50 percent more than Troy Built brand pressure washers.Lawn tractors and lawnmowers also command a price premium over the competition. The brand has become more expensive only because it is John Deere. Similar performance and similar specifications for products with only difference being price has caused a lot of buyers to opt for the lower cost brand. Products that are non related to agriculture and can be substituted with a lower cost rand has lead to lower sales in those areas. If a customer really needs whatsoeverthing and it does not set about to represent his green tractor then they will probably buy the lower cost item. This has led to less profit in non agricultural products. Opportunities John Deere Credit/ Wind Technology Offering clients loans directly through John Deere Credit has increased revenue for the company. Financing of expensive farm equipment contributes extra income to John Deere C redit. The tractors and combines that farmers buy are very expensive, a new combine can cost in excess of $200,00. 00.Customers who buy the machinery tiret have to go to their bank. They can usually get better finance rates through John Deere Credit. This eliminates third party financing and increases the bottom line for John Deere. According to cnn. com/money John Deere has hired Goldman Sachs Group this past month, February 25, 2010, to conduct a review of the wind farms that the company owns. A manageable sale of the wind farm portfolio could earn John Deere about 1 Billion dollars. Threats Caterpillar/Weaker economy/Seasonal Business Caterpillar manufactures heavy construction equipment.They do not build agricultural tractors but they do build a lot of bulldozers and backhoes that are used in general construction. Some heavy equipment that both John Deere and Caterpillar build for construction is similar in specifications. Some forestry machinery is also very similar. This c ould be seen as a threat to compete for limited budgets that would purchase heavy construction equipment if Caterpillar has lowers prices and offers rebates. Weaker economies not just in America but worldwide have slowed the purchases of heavy machinery.This has led to almost consolidation and less sales. Another threat to John Deere is the seasonal nature of the agricultural business. Combines are not harvesting daily. They only work when the crops are ready to be harvested. Tractors only plow and seed in the beginning of the growing season. Conclusion John Deere, Deer and Company is the world leader in tractor sales. They have expanded into a lot of different countries. I think that by offering rebates when buying some of their products or when buying more than one product, they can turn their high price eakness to be more of a strength because they will not only sell more but sell more to the same customers. I believe that given the opportunity I would enjoy working at John Deer e. The company has been around for almost two hundred years. The products that they manufacture can be seen as curtly as one drives south, east, west or north of our urban living area. In some part of our urban area they can be seen working in strawberry fields and lettuce patches. I in person have always enjoyed watching how these marvelous machines work and provide food for our enjoyment and survival.Reference Attou, Marti American Innovator,Agricultural flick http//www. americanprofile. com/article/4689. html http//www. deere. com/en_US/compinfo/history/johndeerestory. html John Deere March 2010 http//en. wikipedia. org/wiki/John_Deere Malone, Scott Deere Considers sale of $1 bln wind portfolio money. cnn. com February 25,2010 http//money. cnn. c om/news/newsfeeds/articles/reuters/MTFH66898_2010-02-25_16-12-43_N2598967. htm Okeefe, Matt Irish Farmers Monthly January 2007 http//www. britannica. com/bps/additionalcontent/18/24655786/Best-year-ever-for-tractor-sales