John Deere Int. Trade Paper Essay

In 1837, John Deere, a young blacksmith who owned a small blacksmith shop, had a dream that would change the agriculture industry of the future. His vision turned reality when a year later, John Deere set up a company, Deere and Company, which would go on to be the leading manufacturer of agricultural machinery in the world. In the present day, John Deere is based in Moline, Illinois. The company’s slogan is “Nothing Runs like a Deere” and has a picture of a leaping deer as a logo. The company has roughly 55,700 employees worldwide.

Deere and Co prides themselves on their founder’s core values. “Integrity, quality, commitment, and innovation are more than ideals we work toward. They are values we live and breathe – values found in every product, service, and opportunity we offer” (John Deere, 2005). This quote is located on their homepage and is something the company strives to base their values around to satisfy their customer’s needs. As of 2012, Deere and Co is listed as 92nd in fortune 500 of Annual rankings of America’s largest cooperation’s.

John Deere sells many different products that attract a wide variety of customers. This ensures that their products are always in the highest demand. These include tractors, combine harvesters, cotton harvesters, balers, planters/seeders, sprayers, and UTVs. The company is also known for its sales of construction and forestry services, as well as lawn, ground, and turf care machinery products. They even offer financial services to its customers and employee’s, which shows the company’s very much an ever expanding business.

John Deere also makes products for big outlet stores such as Home Depot and Lowes, where they can sell their products and services. John Deere has many factories spotted around the US. They also have several factories in Europe. Their products are made in these factories, before they are shipped out to thousands of stores worldwide. John Deere sells its products to big superstores such as Lowes, who sell their products on the company’s behalf. They also have John Deere stores located around the country where their products can be purchased first hand from the company.

John Deere gains a lot of its sales from online, and they have an extensive online sales store that is easily accessible to potential buyers. It has manufacturing and sales facilities worldwide; North America represents more than 60% of sales. The company’s main selling point would have to be the reliability of its products and its fantastic customer service. Just by doing a quick Google search, thousands of results come up with numbers for customer service throughout the world. The phone lines are specific helplines and guidelines in case you are having problem understanding how to work your equipment.

John Deere does not just sell its products and then cash in on my money. They offer very good warranty on their products in case they break. This is a big bonus for customers, because buying some of their products can be a big investment. If you purchased John Deere products from an authorized John Deere dealer, the warranty registration information was handled by the dealer and requires no further effort on your part. This eliminates any customer aggravation in trying to replace their product. According to fastcompany. com, John Deere runs on a complexity theory. You can benchmark both ideas in one visit to one place: a 625,000-square — foot facility in Moline, Illinois that houses the John Deere Seeding Group.

There Deere ; Co. , the world’s largest maker of farm machinery, produces seed planters in 45 different models and with a total of 1. 7 million options – in effect, customizing each planter. To make that happen, Deere deploys methods borrowed from bio-mathematics, scheduling production so carefully that every one of those 1. 7 million permutations can be built on the same assembly line – thereby putting complexity theory to its ultimate test. Judging by this technique John Deere is using, the company is maximizing its profits by producing a lot of machinery, while maintaining high standards and high quality equipment. The story behind Deere’s adoption of these two cutting-edge concepts begins in the late 1970s. After decades of making a wide range of tractors for commercial farmers, Deere launched a new strategy: To cut costs, it would scale back options. Before long, Deere was hearing back from its customers: Less was not more. So Deere switched strategies.

It rediscovered the importance of variety and soon began promising farmer’s even greater choice than before. At the same time, cost-conscious executives insisted that all of this flexibility come without the cost of building a new factory. John Deere’s key numbers for the fiscal year ending October, 2011 were as followed: Sales: $32,012. 5M One year growth: 23. 1% Net income: $2,799. 9M Income growth: 50. 1% As you can tell by these figures, John Deere is an ever expanding company. It takes in a huge portion of the industry and its income growth of 50. 1% is astonishing considering the economic troubles the world is facing.

Kubota Kubota Tractor Corporation (KTC) is a tractor and heavy equipment manufacturer. Based in Osaka, Japan, Kubota is one of John Deere’s main competitors. The company currently has 24,464 employees, significantly less than John Deere. “The company was established in 1890 and has become an international brand leader with a focus on contributing to society by offering environmentally compatible equipment designed to improve quality of life. Kubota Corporation has subsidiaries and affiliates that manufacture and/or market products that are sold in more than 130 countries. The products in which the company sells are tractors and agricultural equipment, engines, construction equipment, vending machines, pipe valves, cast metal, pumps, equipment for water and sewage treatment, and air conditioning equipment. As you can see, a lot of their products are similar to John Deere’s products, but they have a few extra products in which they specialize in like air-conditioning equipment and vending machines. The main selling points the company prides itself on are that they sell environmental friendly products.

Many of their equipment pieces are designed to improve the quality of life for those that use it and receive the benefits of it. By making their products environmental friendly, they are gaining a good ‘green’ image with its customers and therefore increasing profits down to this huge selling point. Although Kubota’s headquarters is in Osaka, Japan, the Kubota Corporation is now an international brand leader in countries worldwide. Because of the initial success in the American marketplace, the Kubota Tractor Corporation was formed in Torrance, California in 1972.

Kubota also owns other similar tractor companies in many countries including Australia, Canada, France, Germany, Poland, Spain, and the United Kingdom. They also have factories based in all of these countries. You can find all of Kubota’s tractors at your local tractor dealer or online for quite reasonable prices. As with John Deere, Kubota sells its products through big superstores such as Lowes. By doing this, they will be making more sales due to the fact that people go to Lowe’s if they want agricultural products. I don’t think that Kubota has such a great deal of sales online than John Deere has.

Through my research, it seems that most people who purchase their products go into the Kubota tractor dealers to buy their equipment. Kubota was heavily involved in the building of The Solar Ark which is one of the most famous solar buildings in the world. It is an ark-shaped solar photovoltaic power generation facility which offers activities to cultivate a better appreciation of solar power generation. By being involved in this enormous project, Kubota stabilized and grew its business a great deal. This deal insured that the company had enough money to expand in more European countries and markets.

Kubota currently dominates the Asian market because it is the biggest manufacturing company of its kind in that continent. World domination is always going to be tough though for Kubota, because they are a few huge agricultural companies in the world, including John Deere. Kubota will always have a problem overtaking John Deere as the U. S. number 1 leading company. The key figures for Kubota for the last fiscal year were as followed. Annual revenue (last year) $11. 0B Annual profit (last year) $646. 4M Net profit margin 5. 87%

You can tell by the figures that Kubota has huge annual revenue worldwide, and that is what keeps the company ticking over. The net profit margin of 5. 87% shows that the company is working at a nice rate, with decent profit levels. Kubota is such a big company that it even has its own sports team. The Kubota Spears are a Japanese rugby union team which is based in Funabashi, Chiba, and they play in the top league.

References

(About John Deere. (n. d. ). John Deere Home Page Redirect. Retrieved May 29, 2012, from http://www. deere. com/wps/dcom/en_US) (Deere – Fortune 500 – DE. (n. . ). CNNMoney – Business, financial and personal finance news. Retrieved May 29, 2012, from http://money. cnn. com/magazines/fortune/fortune500/2012/snapshots/128. html) Roberts, Paul. “John Deere Runs on Chaos. ” N. p. , n. d. Web. ;http://www. fastcompany. com/magazine/19/deere. html;. “KUB. ” CNNMoney. Cable News Network, n. d. Web. 15 June 2012. ;http://money. cnn. com/quote/quote. html? symb=KUB;. “Kubota Tractor Corporation – About Kubota. ” Kubota Tractor Corporation – About Kubota. N. p. , n. d. Web. 15 June 2012. ;http://www. kubota. com/AboutKubota/CompanyInfo. aspx;.