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The final form of the agricultural machinery enterprise can be found in John Deere and Kubota.
[ China Agricultural Machinery Industry News ] What is the final form of agricultural machinery enterprises? Agricultural Machinery Xiaobian believes that John Deere and Kubota seem to bring revolutionary gameplay to the industry and are step by step. Stirring rethinking and positioning of players around the world.
Taking into account the actions of the two companies in the field of construction machinery, in terms of the acquisition and expansion of the agricultural machinery industry in recent years, perhaps it is true that the management of the famous saying: third-rate enterprises to do products, second-rate enterprises to do services, enterprises to do platform .
The final form of the agricultural machinery enterprise can refer to John Deere and Kubota.
1 action
Just at the end of last month, John Deere suddenly announced the acquisition of the Italian family business MAZZOTTI, another major move following the acquisition of plant protection machinery manufacturer Hagie, plus the related plant protection machinery acquired previously. In the enterprise, John Deere’s voice in the field of plant protection machinery has been further strengthened.
At the same time, recalling that in mid-November 2015, John Deere also announced the acquisition of two planter companies in one day: Monosem and Precision Planting.
Although the final anti-monopoly ruling has problems with the acquisition of precision seeding companies, John Deere’s motivation to seize control of the seeding machinery sector is clear.
Obviously, John Deere is expanding from traditional advantages such as tractors and harvesting machinery to ploughing, planting and fertilizing, plant protection and field management. Even in the field of agriculture and other Internet of Things, there are also joint seed and agricultural companies. Big action.
Looking at Kubota, in addition to the recent increase in China's expansion of tractor and harvesting machinery capacity, the big move is to win the Great Plains last year, which is another big move after holding Norway's Kverneland in 2012.
As we all know, Kubota's advantages in the paddy field are unmatched. In the paddy field in Southeast Asia, it is known as the “paddy fieldâ€. It has successively won the Grand and the Great Plains, and in the French company, it has produced 170 horsepower high-power tractors and entered the dry field. The determination is self-evident.
2 motivation
Xiao Bian feels that John Deere and Kubota are two good agricultural machinery companies in the world, all of which have a hundred years of foundation, and one is the advanced representative of Europe and the United States, and the other is an outstanding example of the East.
Naturally, the actions of the two companies also seem to hide the essential motives of the development of all agricultural machinery enterprises: the whole process and the whole world.
The whole process refers to the whole process of mechanized equipment in the field of agricultural production; the global refers to the establishment of “bases†in the demand areas of the world (this is the consistent name of Japanese companies, and friends who like to watch anti-war dramas are familiar. a feeling of?).
This is one of the answers that have been plaguing Xiaobian's problems in the near future. That is, what products should be done by agricultural machinery enterprises in the end, whether they are highly specialized items or comprehensive development. Obviously, John Deere and Kubota gave a good answer.
That's right, if you have the ability, it's good to be able to provide a complete set of equipment solutions for end users, which is also a revolutionary change that is happening in China.
As land circulation and other people make more people and more land, China's end-market users have already used their agricultural machinery as an investment tool – working for others and turning into production tools – to grow their own land.
This change will drive the transformation of the entire agricultural machinery production, sales and service: personalization and complete solutions.
Previously, Xiao Bian felt that many European companies adhered to the original source, only to do their own understanding of the field, a power-driven 耙, a planter, etc., can be done for hundreds of years. However, with the high yield and price reduction of the world's agricultural products and the economic downturn, many agricultural machinery enterprises that adhere to a single product have moved toward expansion.
It turns out that it is too simple to think about Xiaobian. The previous adherence is not sticking to it, but the European companies have been shuffled for hundreds of years. It is difficult to eat each other easily. They are just waiting for the opportunity. Just like John Deere and Kubota, once the time is ripe, they will shoot. .
Similar to many economic rules, John Deere and Kubota are advancing their turnkey solutions with optimized resource allocation.
For example, Kubota chose gold dryers, Maruyama's sprayers and Hansen's agricultural implements as an important supplement. John Deere also has a lot of OEM products on the big ship of Deere.
3 trends
Back to the beginning of the topic, John Deere and Kubota are going to do the business, of course, to be a platform. However, when the resource capacity is not strong enough, they choose to expand the method of individual product accumulation, and choose to operate M&A under capital-driven mode.
In the future, perhaps when the platform is large enough and the operation is deep enough, the agricultural machinery as a tool may be like the current shared bicycle, no money. However, this lack of money is a benefit to deeper value acquisition.
For example, when the solution platform creates more income for farmers by providing agricultural equipment and agricultural technology services, platform companies can benefit from the method of obtaining equity dividends in each link of each value chain. A closer relationship drives the overall win-win of the value chain.
That's right, this may be the direction that John Deere and Kubota are working hard to create a platform to provide solutions to the world. However, some products are made by themselves, some products are co-produced, and some are simply imported into the platform.
However, is the solution platform only agricultural machinery companies doing? Or another way: only agricultural machinery companies can do well? The answer is not too optimistic, just as China’s shared bicycles are not invented by bicycle companies, and agricultural machinery also has the same awkward.
Many people have not found a similar agricultural platform, but we did not open the window. When we push the window away, we will be amazed at another new world. Of course, Xiaobian has been surprised once three years ago.
However, it is more appropriate to go beyond the product to the platform, or to build a good platform and recruit the product path more appropriate. This is not a problem.
The agricultural machinery is more inclined to the former: the final solution is to build a platform for agricultural equipment manufacturers, rather than the platform company to provide solutions for agricultural equipment manufacturers.