John Deere Hbs # 9-577-112

Deere Company had the largest market share in the light crawler tractors. Their market share mostly came from domestic market. Caterpillar dominated the market for heavy construction and mining equipment. Unlike Deere, Caterpillar had a large market share overseas. Deere had a distribution network that was second only to Caterpillar.

Light crawlers, JD350 and JD450, were very successful Deere products. The new heavy construction tractor, JD750, was unique to Deere because it significantly larger than previous products. JD750 was technologically advance to it competitors. Significant amount of investment has already been made on developing JD750.

Deere should enter the heavy industrial equipment market. Deere is strongest in the farming segment. Deere should target this segment because some of these small farming contractors have started using agricultural equipment in nonagricultural applications. Since these people already knew Deere and their reputation of being reliable and having strong engineering excellence. Deere should look to leverage its reputation and engineering work, especially the hydrostatic transmission, to new market.

In order for Deere to