John Deere External Analysis

V. External Analysis: Key Success Factors and Drivers of Change

In this section, it will explain the external analysis of Deere and Company. The industry that Deere and Company are in is one that sells tractors and large special equipment. The key suppliers in this industry are the ones making the parts and the steel to make each piece of equipment they sell. The people buying in their industry are lawn companies, construction companies, and homeowners. This industry has about 1000 companies that have average revenue of 6.2% projected for 2015 (Gamble, Peteraf, & Thompson, 2017). This industry is made up mainly four companies that makeup about 50 percent of the revenue made in this industry. John Deere is one of the four that make up the

There is political by the rise of export taxes which makes it cost more, economical by the rise in United States dollar, social by how people are thinking how farms farm, tech based on new technology and more animation. The two biggest ones are environmental with climate change which is changing the growing seasons and legal problems with the increase in emission requirements(Gamble, Peteraf, & Thompson, 2017). The biggest impact on this industry is the legal part of increased rules and regulations on emission. This is causing the firms in the industry to make sure the products they are selling meet all the requirements of emissions, so they can sell them in each country that has increased their emission requirements. That this will be a reason for the producer cost to go up since they will have to add more technology to meet the emission standards put in place. It will also increase and decrease the customer demand if the cost of the price goes up or down or if the value of the dollar keeps changing which can affect everything by making it more expensive to buy products in this industry. This now leads to Deere

The threat of new entrants is very weak. The reason it is weak is that the industry is dominated by four firms and Deere and Company are one of the four firms that have control and it is hard to get started in this industry (Gamble, Peteraf, & Thompson, 2017). The threat of substitutes is very weak since they sell unique equipment that is not very easy for the company and makes. The bargaining power is moderate since are a couple of other firms you can buy from so gives some choices for people. The bargaining of suppliers is weak since Deere and Company have its own supply line to make sure prices are not high because of other firms all wanting the same supplies raising the prices. The rivalry I would say is very moderate since there is a stiff competition between the four firms that make up 50% of the revenue in this industry so it can make the rivalry strong between the four firms (Gamble, Peteraf, & Thompson, 2017). I think the greatest challenge for all the producers in this industry is getting supplies at a low rate