Deere & Company Case Summary

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1. Five-Forces analysis of competition in the agricultural and construction equipment industry:
a) The Competitive Force of Buyer Bargaining Power: Nowadays, Internet seems to be a great source in the agricultural and construction equipment industry. However, the large corporations tend to have more options of bargaining power than the small independent farms. It makes the competitive force of buyer bargaining power stronger.
b) The Competitive Force of Substitute Products: For producing heavy-duty equipment such as Deere & Company, it is not easy to find a substitute product. It is hard to find other product that can do exact same job as heavy equipment. Therefore, the competitive force of substitute products in the agricultural and construction …show more content…
Most suppliers have many options to choose from. In this case, it makes the supplier bargaining power weak. However, smaller sections of suppliers have fewer options to choose from compare to the larger in size of supply so in this case, it makes supplier bargaining power strong.
d) The Competitive Force of Potential New Entrants: Like mentioned above, it is not easy to find a substitute product. In the agricultural industry, existing brand build a good relationship and earned loyalty from customers. Deere & Company is a very specialized market in agricultural industry that makes the competitive force of potential new entrants weak.
e) The Competitive Force of Rivalry among Competing Sellers: There are many rivals in agricultural and construction equipment industry. For example, Deere & Company was the world’s leading manufacturer of this industry in 2013, and it competitors were CNH Industrial N.V, AGCO Corporation, and Caterpillar, Inc. The competitive force of rivalry among competing sellers is the strongest out of the five competitive forces. It also means this competitive force of rivalry among competing sellers is

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