Case Study SWOT PDF

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TECHNOLOGIES USED

Softwares Machineries

● Granular ​- ​Is Farm Management Tractors and combinations


Software (FMS) that helps equipped with GPS navigation
farmers track activities and systems are used which operate
conditions such as yield, independently and are monitored
moisture and soil quality through consistently by farmers.
their self-driving tractor sensors.
● John Deere Machine Sync - Using Tractors and combinations with
GPS data to create maps based GPS navigation systems can be
on aerial or satellite imagery that given specific scripts and
can be used. instructions to add to their
● JDLink - Allows machines to routine and receive information
upload data to ensure that via satellite. It also allows
farmers are kept up-to - date on farmers to know and monitor
machine activities, maintenance their locations remotely.
tracking and other functions.
● FieldScripts - A software
developed by Monsanto that
takes into account variables such
as the amount of sunlight and
shade, and changes in soil
nitrogen and phosphorus
content. This information will be
forwarded to the seed dealer and
recommendations on the best
course of action will be obtained
in time.
DIGITAL FARM

U.S. farms are now digital due to significant technological advances. Farming
operations have become more successful and self-sufficient. Farmers are
becoming more active in tracking farm machinery and field conditions by
adding them to their tablets and phones.

IMPACTS OF INFORMATION TECHNOLOGY

U.S. farms are now digital due to significant technological advances. Farming
operations have become more successful and self-sufficient. Farmers are becoming
more active in tracking farm machinery and field conditions by adding them to their
tablets and phones.

Precision Agriculture Preciscription Planting

Precision agriculture is characterized as Farmers are now more dependent on


the practice of information technology seed dealers and agricultural companies
in different types of farming activities. to further increase production. Farmers
Computerized precision would allow strive to provide knowledge on their
farmers to be less wasteful and to make field conditions on the best
better use of their resources. Farmers improvements in decision-making that
will act as observers to track all are likely to benefit them.
equipment from their tablet or phone to Monsanto, for example, is one of the
ensure that performance is up to organizations that offers this service
standards, which can be achieved from through their FieldScript program.
their tractor cabins. According to experts, the average
Despite its usefulness, precision maize yield could be increased to more
farming is a considerable investment than 200 bushels per acre from the
that can only be made available to current 160 bushels.
larger farms. Smaller farms can not Nonetheless, not many farms believe
afford automated tractors as well as that their information provided to
combinations. companies is free, they fear that it can
be abused by their competitors.
Farmers can, instead, choose to
aggregate planting data on their own
TRADITIONAL AGRICULTURE VS. ADVANCE AGRICULTURE
TRADITIONAL TECHNOLOGY ADVANCE TECHNOLOGY

Traditional agriculture can be With the application of information


characterized as a primitive style of technology, farming operation is
farming that involves the intensive use improved in several aspects.
of indigenous knowledge, traditional
tools, natural resources, organic Net Production Increase
fertilizers and the cultural beliefs of When the productivity and
farmers. It is worth noting that about effectiveness of the project improve,
50 % of the world 's population still
farmers will be able to produce even
uses it.
more crops and bushels with the
Impact  of  traditional  same amount of money.
agriculture on Environment  According to Monsanto, the
prescriptive planting program is
1. Depleting Nutrients capable of growing global crop
The simplistic method of framing, such as
cutting and burning, removes the organic
production by about $20 billion a
matter from the soil and, within a short year. A farm of 5,000 acres will
period, the nutrient content of the soil raise income from $100,000 to
taken up by the crops. This is what makes $200.000.
farmers move to another location for
farming.
Less waste and resources
2. Deforestation
It is the method of destroying a forest or a With the aid of both precision and
tree stand where the land is used for the prescriptive planting, farmers would
conversion of forest land into a field, a need less fertilizer to achieve the
ranch or an urban usage. The most intense same quantity of yield.
deforestation is found in tropical
rainforests. Slash & burn, and shifting
agriculture, required major logging that
Minimise human error
would lead to deforestation. Self-driving tractors and other
3. Soil Erosion autonomous vehicles are less likely
This is a method of extracting the topsoil by to make errors than would otherwise
the normal physical forces of water and have been possible if they had been
wind, or by means of forces associated with
agricultural practices such as tillage. The
operated manually by farmers. It is
roots of the plant and the trees kept the soil due to the accuracy of scripting and
securely, but the deforestation exposed the automating commands that result in
soil to erosion by the forces of rain , wind the computer routine being exactly
and storms that caused the loss of the the same and exactly how farmers
fertile soil.
would want it to be.
Deere & Company SWOT Analysis

The Deere & Company is one of the leading organizations in its industry.
Deere & Company maintains its prominent position in the market by carefully
analyzing and reviewing the SWOT analysis. SWOT analysis is an immensely
interactive process and requires effective coordination among various departments
within the organization such as – marketing, finance, operations, management
information systems and strategic planning.

Strengths of Deere & Company


● High level of customer satisfaction – the company with its dedicated
customer relationship management department has been able to achieve a
high level of customer satisfaction among present customers and good brand
equity among the potential customers.
● Highly trained workers from successful preparation and learning
programmes. Deere & Company is investing vast resources in the
preparation and growth of its workers , resulting in a workforce that is not
only highly qualified but also driven to achieve more.
● Large Brand Portfolio – Over the years, Deere & Company has invested in
developing a broad portfolio of brands. The SWOT analysis of Deere &
Company clearly underlines this fact. A portfolio of products can be incredibly
useful if the company chooses to grow into new product categories.
● Strong distribution network – Over the years Deere & Company has built a
reliable distribution network that can reach the majority of its potential
market.
● Reliable suppliers – It has a strong base of reliable suppliers of raw material
thus enabling the company to overcome any supply chain bottlenecks.
● Successful track record of incorporation of complementary companies by
mergers and acquisitions. In the last few years, it has successfully
incorporated a range of technology firms to streamline its processes and
create a secure supply chain.
● High Free Cash Flow – Deere & Company has good free cash flows that
provide the business with money to grow into new ventures.
Weakness of Deere & Company

● T​he organization has not been able to meet the demands of new entrants in
the sector and has lost a limited market share in niche categories. Deere &
Company must develop an internal input system directly from the sales team
on the ground to overcome these challenges.
● Financial preparation is not carried out correctly and effectively. Current
asset ratios and liquid asset ratios indicate that the business can make more
effective use of cash than it does at present.
● Investment in research and development is below the fastest-growing
players in the industry. While Deere & Company spends more than the
industry average on research and development, it has not been able to
compete with the industry's leading players in terms of innovation. It has
come across as a seasoned business looking forward to introducing products
focused on proven features to the market.
● Organizational structure is only consistent with the existing business model,
thereby limiting the growth of neighboring product segments.
● There are differences in the selection of goods offered by the company. This
lack of competition will give a new competitor a foothold on the market.
● The promotion of the goods has left a lot to be desired. While the product is a
success in terms of sales, its positioning and specific marketing strategy is
not well described, which may lead to attacks by rivals in this market.
● The productivity ratio and net contribution rate of Deere & Company are
below the industry average.
Opportunities for Deere & Company

● Opening up new markets as a result of a government agreement – the


introduction of a global technology framework and a negotiated free trade
agreement presented Deere & Company with an opportunity to enter a major
emerging market.
● Higher inflation rate – Lower inflation levels add more stability to the
economy, allowing lower interest rate loans to Deere & Company customers.
● New online channel customers – In the last few years , the company has
spent large amounts of money in the online network. This move has opened
up a new distribution platform for Deere & Company. Over the next few
years, the company will be able to take advantage of this opportunity by
better understanding its client and meeting their needs using big data
analytics.
● The new technology offers Deere & Company an opportunity to implement
competitive product strategies in the modern industry. This will allow the
company to retain its loyal customers with a high level of service and to
attract new customers through other value-oriented proposals.
● Decreasing freight costs due to lower shipping rates will also reduce the cost
of Deere & Company's goods, thereby creating an incentive for the
company-either to improve its competitiveness or to pass on benefits to
consumers in order to gain market share.
● New trends in consumer behavior could open up a new market for Deere &
Company. It offers an excellent opportunity for the company to develop new
revenue sources and also to diversify into new product categories.
● Market innovations will lead to a dilution of the competitive advantage which
will allow Deere & Company to increase its profitability relative to other
competitors.
● The new tax reform will have a huge effect on the way of doing business and
will open up new opportunities for existing companies such as Deere &
Company to improve their profitability.
Threats Deere & Company Facing

● Liability regulations in various countries are different and Deere &


Company could be subject to different liability lawsuits due to
regulatory shifts in those markets.
● Rising pay rates, particularly movements such as $15 an hour and
rising prices in China, can lead to serious pressure on the profitability
of Deere & Company.
● Imitation of counterfeit and low-quality goods is also a threat to Deere
& Company's product, especially in emerging markets and low-income
markets.
● New technologies introduced by a competitor or a market disruptor
may pose a serious threat to the industry in the medium to long term.
● The market for highly profitable goods is volatile in nature and any
unexpected occurrence during the peak season may have an effect on
the profitability of the business in the short to medium term.
● New environmental legislation under the Paris Agreement (2016) may
present a danger to some current categories of goods.
● The lack of skilled labor in many global markets is a threat to the
steady growth of income for Deere & Company in those countries.
● The company can face litigation in different markets-different laws and
constant variations in quality prices in those markets.
Conclusions
Short-Term
John Deere must continue to reduce its short-term debt in order for
the company to have enough money to remain competitive on the markets
of the future. This strategy is not going to be easy to execute, as it would
entail a lot of financial reorganization. The positive results of this strategy
are that John Deere will boost the financial health of the business and raise
its cash flows in the near future.

Long-Term
John Deere should try to establish a strong base in the Asian markets;
so it can benefit the company in the coming years. The reason for this is that
Asian markets are modernizing, expanding their infrastructure and
production capacities. To accommodate these tasks, the Asian economies
will require modern and efficient products. This will in turn increase demand
for agriculture equipment and increase the presence of John Deere in these
developing markets.

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