Deere and Co. Swot Analysis

DeVry University Pomona, California Swot Analysis of privy Deere sign 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 Business BUSN cxv Professor Tom Donini March 21, 2010 smart set Profile flush toilet Deere (Deere & society NYSE DE) is a human beings leader in providing technologically sophisticated machinery for agriculture, forestry, construction, lawn and turf care, and all sorts of landscaping. rear end Deere also provides financial services worldwide.Deere & Company as it is known on the New York Stock Exchange even outs and markets laboured machinery and engines used in heavy equipment. The company was founded by a blacksmith named ass Deere. John Deere moved from Vermont to Illinois and immediately set up a blacksmith discover in 1837. John Deere developed a better plow for the tougher skank found in the Mid due west and from in that location John Deere was established. Today John Deere Construction & Forestry produces more than 120 machine models and distributes its construction, forestry and attainsite products through a net of more 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 discover this aspiration, our strategy is * Exceptional operating performance * Disciplined SVA growth * ad dear high-performance teamwork Execution of this strategy creates the distinctive JohnDeere Experience that at last propels a great business and, for all with a stake in our success, deliversPerformance That Endures SWOT Analysis of John Deere Strengths * Highly accepted and prize brand * Market pronouncement for heavy equip ment and machinery Weaknesses * High harms * Less benefit in non inelegant products Opportunities * John Deere Credit * Wind Technology Portfolio Threats * hombre * Weaker economies worldwide * Seasonal Business of agriculture Company Strengths Highly certifyd and respected brand John Deere has established itself as the leader in agricultural products worldwide since the 1960s.John Deere green has become a color. Easy to recognize and distinguish itself from the competition. Marketing slogan on television commercials effectively ties in the logo with the company, Nothing runs like a Deere. According to Encyclopedia Brittanica Online there was a surge in tractor gross 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 remuneration in non agricultural products John Deere tractors and other equipment are generally outlayd higher than other quipment. John Deere brand pressure washers at Lowes Home Improvement warehouse woos 30 to 50 percent more than Troy build brand pressure washers.Lawn tractors and lawnmowers also command a price subvention over the competition. The brand has become more expensive scarcely because it is John Deere. Similar performance and similar specifications for products with only difference being price has caused a assign 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 in reality needs something and it does not have to match his green tractor then they forget probably buy the lower cost item. This has take to less profit in non agricultural products. Opportunities John Deere Credit/ Wind Technology go clients loans directly through John Deere Credit has increased revenue for the company. pay of expensive arouse equipment contributes extra income to John D eere Credit. The tractors and combines that farmers buy are actually expensive, a new combine can cost in extravagance of $200,00. 00.Customers who buy the machinery dont have to go to their bank. They can normally get better finance rates through John Deere Credit. This eliminates triplet party financing and increases the bottom line for John Deere. According to cnn. com/ capital John Deere has hired Goldman Sachs Group this past month, February 25, 2010, to conduct a go over of the wind farms that the company owns. A possible sale of the wind farm portfolio could earn John Deere about 1 Billion dollars. Threats Caterpillar/Weaker deliverance/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. few heavy equipment that both John Deere and Caterpillar build for construction is similar in specifications. Some forestry machinery is also very similar. This could be seen as a threat to manage 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 some consolidation and less sales. Another threat to John Deere is the seasonal worker 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 varied 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 Deere. The company has been around for almost two hundred years. The products that they manufacture can be seen as soon as one drives south, east, west or north of our urban living area. In some move of our urban area they can be seen working in hemangioma simplex fields and lettuce patches. I personally have always enjoyed watching how these grand machines work and provide food for our enjoyment and survival.Reference Attou, Marti American Innovator,Agricultural Icon http//www. americanprofile. com/ denomination/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-e ver-for-tractor-sales