3 ms·

Because it's a heavily entrenched industry that's not easily disrupted, where each brand has carved it's on territory by geography and there's this silent gentl

Because it's a heavily entrenched industry that's not easily disrupted, where each brand has carved it's on territory by geography and there's this silent gentlemen's agreement of "you stay out of my market, I stay out of yours and we all win" since even if the other competitor would attempt to come in the other market, it would face an uphill and insanely expensive battle just to enter the market, as in order to capture any market share it would need to undercut its competitor on cost while offering superior quality, while spending insane money on the supply chains and world class service and tech network which guarantees the up-time of your machinery, thereby weakening the profit margins not just for themselves but potentially the whole market. So why would you want to do something as risky and foolish as that when you got a good thing going?

giantg2 5y ago
I'm not sure which brands are owned by Deere, but there are quite a few available in the US, depending on scale. I specifically think that LS is foreign, but don't remember for sure.
onion2k 5y ago
silent gentlemen's agreement We assume it's silent but we probably shouldn't. It could be a boring old cartel. Someone should check.
gunapologist99 5y ago
> Because it's a heavily entrenched industry that's not easily disrupted, where each brand has carved it's on territory by geography and there's this silent gentlemen's agreement of "you stay out of my market, I stay out of yours and we all win Do you know that this is the case or are you speculating? It seems like there's an intense amount of competition, especially with imported farming equipment. (I have no idea if John Deere sells overseas or if it's mostly a domestic brand.) Some other manufacturers that seem to have big branding in the U.S. are New Holland (just found out they're owned by Fiat.. small world), Mahindra, and Kubota. Are those all part of this cartel that you're alleging exists?
- ChuckNorris89 5y ago
  >Do you know that this is the case or are you speculating? I don't work in farming but I worked for an European HW manufacturer that's top in Europe in that niche and the CEO back then told us we're not aggressively pursuing expansion outside of Europe since US, China, Japan, Korea have their own local champions in this market and it's not profitable to go to war with them on their own turf, so he told us about this silent gentlemen's agreement where everyone keeps to his own market so we can all profit as "the pie is big enough for everyone, if we start fighting over it then we'd all lose". I assume the same business concept applies here.
- mitchell_h 5y ago
  He's full of it. I do have a background in farming. Case, and Deere go head to head in almost every market. New Holland and a couple others also play in the same markets depending on what KIND of machine you're looking to run. Tillage tractors are pretty much fendt/challenger, NH, deere, case. When you get into combines/coppers other brands also play. For the consumer and/or smaller tractor market there's all sorts of options. Why people go deere or case is simple. It's the supply chains. You have N days to get your crop in the ground, and Y days to get your crop harvested. Deere and case have the best(and most expensive) field techs and dealer support. "A machine is only as good as your dealer support" is the phase almost everyone uses when shopping for equipment. Anyone with a significant investment of tractors(non-hobby farmers) can have a case or deere tech replace or fix damn near anything in hours or days, on site.
  - randomdata 5y ago
    > Tillage tractors are pretty much fendt/challenger, NH, deere, case. Versatile is making inroads again. Starting to see quite a few of them around.
  - akvadrako 5y ago
    This seems the most imformative comment in this discussion. So if there is competition and Deere is really the best, I don't see the issue. The right incentives are there to make farming better.

giantg2 5y ago

I'm not sure which brands are owned by Deere, but there are quite a few available in the US, depending on scale. I specifically think that LS is foreign, but don't remember for sure.

onion2k 5y ago

silent gentlemen's agreement We assume it's silent but we probably shouldn't. It could be a boring old cartel. Someone should check.

gunapologist99 5y ago

> Because it's a heavily entrenched industry that's not easily disrupted, where each brand has carved it's on territory by geography and there's this silent gentlemen's agreement of "you stay out of my market, I stay out of yours and we all win Do you know that this is the case or are you speculating? It seems like there's an intense amount of competition, especially with imported farming equipment. (I have no idea if John Deere sells overseas or if it's mostly a domestic brand.) Some other manufacturers that seem to have big branding in the U.S. are New Holland (just found out they're owned by Fiat.. small world), Mahindra, and Kubota. Are those all part of this cartel that you're alleging exists?

ChuckNorris89 5y ago
>Do you know that this is the case or are you speculating? I don't work in farming but I worked for an European HW manufacturer that's top in Europe in that niche and the CEO back then told us we're not aggressively pursuing expansion outside of Europe since US, China, Japan, Korea have their own local champions in this market and it's not profitable to go to war with them on their own turf, so he told us about this silent gentlemen's agreement where everyone keeps to his own market so we can all profit as "the pie is big enough for everyone, if we start fighting over it then we'd all lose". I assume the same business concept applies here.
mitchell_h 5y ago
He's full of it. I do have a background in farming. Case, and Deere go head to head in almost every market. New Holland and a couple others also play in the same markets depending on what KIND of machine you're looking to run. Tillage tractors are pretty much fendt/challenger, NH, deere, case. When you get into combines/coppers other brands also play. For the consumer and/or smaller tractor market there's all sorts of options. Why people go deere or case is simple. It's the supply chains. You have N days to get your crop in the ground, and Y days to get your crop harvested. Deere and case have the best(and most expensive) field techs and dealer support. "A machine is only as good as your dealer support" is the phase almost everyone uses when shopping for equipment. Anyone with a significant investment of tractors(non-hobby farmers) can have a case or deere tech replace or fix damn near anything in hours or days, on site.
- randomdata 5y ago
  > Tillage tractors are pretty much fendt/challenger, NH, deere, case. Versatile is making inroads again. Starting to see quite a few of them around.
- akvadrako 5y ago
  This seems the most imformative comment in this discussion. So if there is competition and Deere is really the best, I don't see the issue. The right incentives are there to make farming better.