Industry History “Agricultural equipment is any kind of machinery used on a farm to help with farming. This industry generates $41 billion a year, and has an annual growth of 1.5% according to (Tractors & Agricultural Machinery Manufacturing in the US Market Research). Agricultural equipment and machinery manufacturing has been thriving since the 1900’s. The goal of this industry is to provide quality equipment that is durable and sufficient, capable of getting jobs done accurately and in a timely fashion.
PESTEL
Political
In 2011, the U.S. Environmental Protection Agency (EPA) mandated new emission standards that impacted agricultural machinery. The new standard affected all non-road diesel engines. “The Tier 4 rule is intended to …show more content…
The threat of substitute is “the availability of a product that the consumer can purchase instead of the industry’s product also low in this industry.” (Threat of Substitutes, 2013) It is hard to have a substitute when looking at the farming equipment manufacturing industry. Products are standardized which make it difficult to offer a substitute. Buying Power. Buying power is the ability and influence that consumers have on businesses, to provide customers with the best prices, service, and quality of products. The buying power also belongs to organizations. Companies have the control when buying from manufactures because of the competition between manufactures. In this industry the buying power is moderate, for corporations such as Tractor Supply and Lowes. With competition very high in this industry Supplier Power. The supplier power is the ability that suppliers have on consumers. In this industry, suppliers have low power. As long as there are a large number of companies in this industry, competition forces suppliers to obtain minimal power. The competition in the industry keeps prices fair and lets the buyer have more power. Having standardized products in this industry has led to consumers to have an effect on manufacturing farm equipment. Since all products accomplish the same task, suppliers have to find competitive
PESTEL
Political
In 2011, the U.S. Environmental Protection Agency (EPA) mandated new emission standards that impacted agricultural machinery. The new standard affected all non-road diesel engines. “The Tier 4 rule is intended to …show more content…
The threat of substitute is “the availability of a product that the consumer can purchase instead of the industry’s product also low in this industry.” (Threat of Substitutes, 2013) It is hard to have a substitute when looking at the farming equipment manufacturing industry. Products are standardized which make it difficult to offer a substitute. Buying Power. Buying power is the ability and influence that consumers have on businesses, to provide customers with the best prices, service, and quality of products. The buying power also belongs to organizations. Companies have the control when buying from manufactures because of the competition between manufactures. In this industry the buying power is moderate, for corporations such as Tractor Supply and Lowes. With competition very high in this industry Supplier Power. The supplier power is the ability that suppliers have on consumers. In this industry, suppliers have low power. As long as there are a large number of companies in this industry, competition forces suppliers to obtain minimal power. The competition in the industry keeps prices fair and lets the buyer have more power. Having standardized products in this industry has led to consumers to have an effect on manufacturing farm equipment. Since all products accomplish the same task, suppliers have to find competitive