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Deere Sales

Delivering innovative precision technologies that enhance customer productivity while revolutionizing sustainable agriculture to feed 10 billion people by 2050

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Align the strategy

Deere Sales SWOT Analysis

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Delivering innovative precision technologies that enhance customer productivity while revolutionizing sustainable agriculture to feed 10 billion people by 2050

Strengths

  • BRAND: 186-year legacy of reliability and quality drives premium pricing
  • TECHNOLOGY: Industry-leading precision ag technology platform
  • DISTRIBUTION: Extensive global dealer network providing sales support
  • SERVICE: Comprehensive aftermarket parts and maintenance offerings
  • MANUFACTURING: Vertical integration ensuring quality and supply chain

Weaknesses

  • PRICING: Higher equipment costs vs competitors limits market share
  • CYCLICAL: Heavy exposure to agricultural market cycles and volatility
  • FINANCING: Complex financing options creating sales friction
  • TRAINING: Inadequate dealer training on advanced tech features
  • DIGITAL: Limited digital-first customer acquisition strategies

Opportunities

  • AUTOMATION: Accelerating adoption of autonomous farming equipment
  • DATA: Monetization of precision agriculture data insights
  • SUSTAINABILITY: Growing market for eco-friendly equipment solutions
  • EMERGING: Expanding presence in high-growth developing markets
  • SUBSCRIPTION: Transitioning to equipment-as-a-service models

Threats

  • COMPETITION: Increasing competitiveness from global manufacturers
  • REGULATIONS: Stringent emissions and safety regulations increasing costs
  • ECONOMIC: Fluctuating commodity prices impacting farmer purchasing
  • TALENT: Shortage of specialized ag-tech sales and support talent
  • DISRUPTION: New market entrants with disruptive business models

Key Priorities

  • TECHNOLOGY: Accelerate precision ag technology adoption and training
  • SUBSCRIPTION: Develop equipment-as-a-service recurring revenue models
  • DATA: Monetize agricultural data insights across the customer base
  • DIGITAL: Transform digital-first customer acquisition and engagement
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Align the plan

Deere Sales OKR Plan

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Delivering innovative precision technologies that enhance customer productivity while revolutionizing sustainable agriculture to feed 10 billion people by 2050

TECH DOMINATION

Lead precision ag technology adoption across all segments

  • TRAINING: Train 100% of sales force on precision ag technologies with 90% certification rate by Q3
  • ADOPTION: Increase precision ag technology attachment rate from 60% to 75% on all new equipment sales
  • PIPELINE: Develop sales pipeline qualification model incorporating precision ag readiness scoring
  • ENABLEMENT: Create 15 new customer success stories demonstrating precision ag ROI across segments
SUBSCRIPTION GROWTH

Transform business model toward predictable revenue

  • MODEL: Launch 3 equipment-as-a-service pilot programs with 50+ customers across different segments
  • CONVERSION: Convert 15% of new large ag equipment sales to subscription-based contracts
  • RETENTION: Achieve 85% renewal rate on existing subscription services through enhanced value delivery
  • REVENUE: Generate $150M in subscription and recurring revenue, a 40% increase YoY
DATA INSIGHTS

Unlock value from agricultural data ecosystem

  • PLATFORM: Increase Operations Center monthly active users from 125,000 to 200,000 farmers
  • PREMIUM: Launch premium data insights package with 5,000 paying subscribers in first quarter
  • PARTNERS: Establish 10 new strategic partnerships with agronomy service providers
  • ANALYTICS: Deploy predictive yield insights capability to 50,000 acres with documented ROI
DIGITAL FIRST

Revolutionize customer acquisition and engagement

  • LEADS: Generate 25,000 qualified digital leads through enhanced marketing automation
  • EXPERIENCE: Launch new e-commerce platform for parts/accessories with $50M quarterly revenue
  • CONTENT: Create comprehensive digital content strategy driving 40% increase in engagement
  • ANALYTICS: Implement end-to-end digital attribution model showing ROI on marketing spend
METRICS
  • Equipment Sales Revenue: $52B
  • Precision Ag Attachment Rate: 75%
  • Recurring Revenue Growth: 40%
VALUES
  • Integrity: Doing what's right, even when no one is looking
  • Quality: Excellence in products, services, and solutions
  • Commitment: Meeting customer needs with unmatched dedication
  • Innovation: Creating breakthrough technologies for future success
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Align the learnings

Deere Sales Retrospective

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Delivering innovative precision technologies that enhance customer productivity while revolutionizing sustainable agriculture to feed 10 billion people by 2050

What Went Well

  • REVENUE: Equipment sales reached $12.4B, up 5% YoY despite market
  • MARGINS: Improved gross margins to 27.3% through cost optimization
  • PRECISION: Precision Agriculture segment grew 15%, leading all divisions
  • AFTERMARKET: Parts and service revenue increased 8% to $2.1B quarterly

Not So Well

  • INVENTORY: Dealer inventory levels up 22%, indicating softening demand
  • CONSTRUCTION: Construction equipment sales declined 7% YoY in N. America
  • EXPENSES: SG&A costs increased 12%, outpacing revenue growth of 5%
  • ORDERS: Production & Precision order backlog declined 15% sequentially

Learnings

  • FLEXIBILITY: Need greater manufacturing flexibility for market shifts
  • ADOPTION: Customer tech adoption requires more comprehensive training
  • SUBSCRIPTION: Early subscription model tests showing promising results
  • SEGMENTS: Small and medium farmers showing different buying patterns

Action Items

  • INVENTORY: Implement aggressive dealer inventory reduction incentives
  • PRICING: Introduce flexible financing options to improve affordability
  • TRAINING: Launch comprehensive precision ag technology training program
  • DIGITAL: Accelerate digital sales channels to complement dealer network
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Drive AI transformation

Deere Sales AI Strategy SWOT Analysis

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Delivering innovative precision technologies that enhance customer productivity while revolutionizing sustainable agriculture to feed 10 billion people by 2050

Strengths

  • FOUNDATION: Strong base of smart connected equipment generating data
  • ACQUISITION: Recent acquisitions of AI and robotics companies
  • PLATFORM: Established Operations Center digital platform for integration
  • INVESTMENT: Significant R&D investment in AI capabilities (8% of revenue)
  • TALENT: Growing pool of data scientists and ML engineers

Weaknesses

  • ADOPTION: Slow customer uptake of advanced AI-powered solutions
  • FRAGMENTATION: Siloed AI initiatives across business units
  • ANALYTICS: Limited advanced predictive analytics capabilities
  • TRAINING: Sales team lacks AI solution selling expertise
  • INTEGRATION: Poor integration between AI systems and core products

Opportunities

  • PREDICTIVE: AI-powered yield prediction and crop management systems
  • AUTONOMOUS: Fully autonomous equipment operation across farm tasks
  • OPTIMIZATION: AI-driven equipment maintenance and efficiency gains
  • PERSONALIZATION: Customized solutions based on customer data profiles
  • ECOSYSTEM: AI-powered integrated farm management platform

Threats

  • DISRUPTION: Tech companies entering agricultural AI space
  • PRIVACY: Growing concerns about farm data ownership and privacy
  • TALENT: Fierce competition for AI talent from tech sector
  • REGULATION: Emerging restrictions on AI use in agriculture
  • EXPECTATIONS: Rapidly evolving customer expectations for AI solutions

Key Priorities

  • PLATFORM: Create unified AI platform connecting all equipment and data
  • TRAINING: Develop comprehensive AI solution selling program
  • MONETIZATION: Launch subscription-based AI advisory services
  • AUTONOMOUS: Accelerate autonomous equipment commercialization