According to the latest research reports, the farm equipment manufacturing industry is expected to revenues of over $243 billion by 2022.
Farm equipment comprises of a wide range of equipment such as plows, tractors, cultivation equipment, and harvesters. Today, primitive tools are being replaced with new agricultural equipment, which mainly includes crop processing and drip irrigation equipment. Major factors that are expected to drive the growth of the farm equipment manufacturing industry are the increasing adoption of technology-driven farm equipment and the rising demand for food due to growing population. Additionally, strong economic growth in the developing nations such as India, China, and the Middle Eastern countries will further boost the growth of this industry.
However, several factors are expected to influence the growth of the farm equipment manufacturing industry in the coming years. A few factors include:
- Deficiencies in telecommunications set-up in rural areas: The agricultural sector, like all other sectors of the economy, relies on up-to-date telecommunications set-ups. However, in rural areas, there is only a partial amount mobile signal or internet connection. This typically makes it impossible to make the optimum use of digital applications and increase the utilization of resources.
- Insufficiency of media skills: Today, digital applications need to be a part of farmers’ everyday routines, regardless of their prior knowledge. Additionally, formal education and training on digital media are necessary as these applications deliver added value to the farmers and help them categorize the risks.
Many such factors are compelling farm equipment manufacturers to leverage the use of market entry strategy solutions. Market entry strategy solutions help firms gain insights into the potential bottlenecks in terms of the barriers to entry and improve business competence in areas such as marketing, sales, and delivery.
The Business Challenge
- The client: A renowned farm equipment manufacturing
The client, a leading equipment manufacturer with manufacturing units spread across the globe, wanted to identify the niche markets and judiciously allocate the resources to target the price-sensitive customers. Additionally, the client wanted to devise a one-size-fits-all approach to improve the capability and quality of their offerings.
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Infiniti’s market entry strategy experts carried out extensive research with leading stakeholders in the farm equipment manufacturing space to help the client gain insights into ways to penetrate niche market segments. The experts also compiled information from various proprietary sources including paid industry databases, company presentations, and industry forums to help the client enhance their brand awareness.
The Solution Benefit and the Business Impact
The market entry strategy engagement helped the farm equipment manufacturing client to identify, enter new markets, and improve business operations across the industry. The engagement also helped the client to improve their production capabilities and achieve better economies of scale and quality control measures. This helped them achieve better returns on their marketing investment in the farm equipment space.
Rising adoption of highly mechanized and modern farming practices is expected to enhance the overall farm productivity. Additionally, smart farming practices through precision equipment will be a major trend across markets in North America and Europe in the coming years.