Swot Analysis of John Deere
Symbol on NYSE : DE
11307 Spy Glass Hill Road, Whittier, CA 90601
Submitted in Partial Fulfillment of the Course Requirements for Introduction to Business
Professor Tom Donini
March 21, 2010
John Deere (Deere & Company — NYSE: DE) is a world leader in providing technologically advanced machinery for agriculture, forestry, construction, lawn and turf care, and all sorts of landscaping. John Deere also provides financial services worldwide. Deere & Company as it is known on the New York Stock Exchange manufactures and markets heavy machinery and engines used in heavy equipment. The company was founded by a blacksmith named John Deere. John Deere moved from Vermont to Illinois and immediately set up a blacksmith shop in 1837. John Deere developed a better plow for the tougher soil found in the Midwest and from there John Deere was established. Today John Deere Construction & Forestry produces more than 120 machine models and distributes its construction, forestry and worksite products through a network of more than 1,300 dealer locations worldwide. The company employs more than 50,000 people worldwide. John Deere’s 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 performance * Disciplined SVA growth * Aligned high-performance teamwork Execution of this strategy creates the distinctive John Deere Experience that ultimately propels a great business and, for all with a stake in our success, delivers...Performance That Endures |
SWOT Analysis of John Deere
Strengths * Highly recognized and respected brand * Market dominance for heavy equipment and machinery| Weaknesses * High prices * Less profit in non agricultural products| Opportunities * John Deere Credit * Wind Technology Portfolio| Threats * Caterpillar * Weaker economies worldwide * Seasonal Business of agriculture|
Highly recognized 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 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.
High Prices/Less profit in non agricultural products
John Deere tractors and other equipment are generally priced higher than other
equipment. John Deere brand pressure washers at Lowe’s Home Improvement Warehouse
costs 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
Products that are not related to agriculture and can be substituted with a lower cost
brand has lead to lower sales in those areas. If a customer really needs something and it does
not have to match his green tractor then they will probably buy the lower cost item. This has
led to less profit in non agricultural products.
John Deere Credit/ Wind Technology
Offering clients loans...