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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 penetrate the new market, they must stay away from direct competition with Caterpillar. Deere should focus on other smaller companies such as Komatsu and Terex because Caterpillar has better cost structure (assuming 50% tax) that Deere...
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