Deere and Co. Remote Environment Analysis Deere and Co.’s remote environment is one that has many factors that affects its industry of farm and heavy machinery. These 6 external factors include the economical, global, social, political, technological, and demographics of the remote environment that Deere and Co. operates in. The industry depends on many external factors to be stable such as construction of new infrastructure, fertile harvests, technology advancement of machinery, expanding global harvesting, or dynamics of food demand and production. The factors that will be focused on will be the social, global, and technological factors that affect the strategy Deere and Co.
Technological Conditions In the farm and heavy machinery industry innovation and quality is very important to Deere and Co. and something they try to pride themselves on making products different than other companies in the industry. They want their products to be the leading technology that are more efficient, reliable, and durable. This is also reflected in their market share of the industry being the leader. They try to keep their products technology advanced throughout all key markets in the world. Technology affects every aspect of the Deere and Co. enterprise from the first manufacturer and testing of a tractor to the wireless monitoring system used by farmers to track crop yield. Even though their roots are in agriculture their products span goes into turf, construction, forestry, and even financial services. Their spirit of innovation is inspiring them to change basic designs and practices used by others in the industry to keep setting the trend for other corporations. For example, they are literally reinventing the wheel on turf products (regular riding lawn mowers). These wheels are different than any other wheels on a mower; its unique construction offers a consistent height, smooth ride, and a more durable tire with three times the life of other tires. (Deere, John) The products of Deere and Co. are deeply rooted in agriculture and the technology used to produce a plot of produce is wide and advanced. Their farming equipment can now be installed with global positioning systems and remote view accessing from laptops and mobile devices to allow farmers to control and track machinery’s locations and productivity. The sensors now installed in the tractors can give the farmer reliable data on the quality of the soil.
These advancements in their technology will allow their consumers to produce a product with a lower operating costs, maximize product, and eliminate downtime. The wide span of products used in forestry are in need of effective technology to ensure minimal waste and quality safety for employees. Deere and Co. is a leader in the technological conditions of the farm and heavy machinery industry and that is part of their legacy.
Global Conditions Deere and Co. is truly a global company with worldwide location from Germany, Brazil, China, France, India, and Israel. They have factories, offices, and other facilities in more than 30 countries. Any external factor can affect Deere and Co. because its company is spanning throughout the most populated areas in the world. In the long-term the population will be increase from 7.1 billion in 2013 to more than 9.5 billion by 2050 with the most growth in Asia and Africa. Deere and Co. believes they feed the world with all of their products farming equipment so to keep this trend they must double their agricultural output. The massive urbanization of people from rural areas to urban areas will increase demand for infrastructure in urban areas where Deere and Co. supplies heavy machinery for building infrastructure. Deere and Co. will be one of the main catalyst for feeding the overpopulated world and also helping many people move amongst the city in an organized manner. Brazil is on Deere and Co.’s radar as a country wide a large amount of growth potential. Brazil’s largest global