Deere strategy

   / Deere strategy #11  
IIRC,
Once upon a whenever ago there was a BIG company that went by the initials of I B M.
They would {graciously} allow sufficiently large corporations to approach them to buy their "electronic data processing equipment". They just about didn't "sell" as we understand the meaning of the word.

They almost went under when times changed. They DID successfully "re-invent themselves", but as a much smaller company and one that actively SELLS all the way down to the bottom end of the market.

I have no idea what else the J.D. group is thinking, but it seems to me that they should give due consideration to ALL market segments, not just the huge agri-biz end of the market. Words like agility and flexibility also need to be in their biz strategy.
 
   / Deere strategy #13  
A few years ago we bought an LX266 mower from a local John Deere dealership for around $3,400. The very next year, similar (but different :rolleyes: ) models were available at Home Depot for around $1,500. I remember feeling very frustrated by that development. I am sure pride and ego were at the heart of the matter, but it just didn't seem right. Nevertheless, as a business person, I could completely understand their reasoning. The reality is that you must have a way to bring product to market and move it if you plan to be profitable in the long term. Sentimental business decisions are often unprofitable--as difficult as that is for us to accept some times.
 
   / Deere strategy #14  
Reg said:
I have no idea what else the J.D. group is thinking, but it seems to me that they should give due consideration to ALL market segments, not just the huge agri-biz end of the market. Words like agility and flexibility also need to be in their biz strategy.

They are simply going where the $$ is. The margins for large equipment are much higher, and given the stiff competition in the CUT market they can't make the margins they are probably used to without looking like idiots.
 

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