1,107 karma · joined December 21, 2016
If you look at a company like Deere, making equipment is a small part of what they do. A lot goes into putting it to work and making sure it works. A lot of the company is driven by local software. Because the equipment lasts longer, the secondhand markets are a big deal. Those markets are local. For financing, you need local information so you can know the good risks. Imagine that in Illinois, 90% of the tractors and harvesters and seeders are made by Deere. Who will have the best service? Which second-hand market will be the most dense and therefore easiest to sell? Who will have the best information and financing? Deere. Kubota will have a hard time trying to break into that market. And Deere, even if it temporarily suffers in sales, has a service base that means it’s not going to compete on price.
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