General Environment

The general business environment for John Deere is generally pretty stable.  Farmers and construction workers will always need equipment to accomplish their work and brand loyalty is very high in the implement industry.  This has to do with generational preferences and also the fact that there is a dealership near your operation that allows you to get service when you need it from people you trust.  A farmer or construction worker does not have weeks to wait while they get a part in from a different country.  John Deere does a very good job of having dealerships nearby to help their customers do their job well.  They make it easy for their customers to get what they need.  Whether that is financing a new tractor, or finding an engine dealer to partner with on your boat making business, John Deere makes it easy for your to do business with them.  That is a big competitive advantage for their company as it is essential to their customers needs.

The most concerning element for John Deere at this point is economic worries. Coming out of a recession, with consumer confidence low and pocket books tight, most of their customers will be looking to fix their equipment rather than buy new things.  The challenge for John Deere will be to make enough enough sales while still trying to satisfy their consumer interests.

The John Deere target market is very specific.  They are looking for certain professions for the majority of their products.  Farmers, construction companies, and possibly landscapers, are the businesses that the majority of their business is based on.  People who work these jobs are generally middle aged men who live in rural areas.

On a global scale, John Deere is already operating in most countries around the world.  As the world becomes more wealthy, such as the rising middle class of China, John Deere needs to capitalize on these opportunities. As a company, they need to implement themselves fully into these countries in order to have the services that their customers need.  It will be hard to sell a tractor to someone if they do not have accessibility to the parts and service that they need for day to day maintenance.

Technology needs to be at the forefront of the companies minds.  As agriculture becomes more and more technologically advanced, their customers are becoming more industrialized and are looking for ways to become more efficient.  They want a sprayer that will not waste an ounce of chemical because costs are so great.  GPS is becoming more popular and accessible.  This allows farmers to track their progress and become more accurate with their driving.  Along with all of these things, John Deere needs to watch their competitors.  Keeping up with competitors and staying ahead of them is very important in their industry.  Consumers want the most efficient systems and in order to do that they need to have the most advanced technology working for them.

Politically, John Deere needs to monitor the world and try to understand the difference in policies for different countries.  Safety, emissions, and other such requirements will be different from country to country.  They need to make sure that they meet these requirements and stay within the nations laws so that they avoid legal battles and complications.