1) The Cervus Equipment Corporation is a Canadian company famous for its rapid growth and consolidation through managing agricultural equipment and dealerships in different regions and countries. (Cervus, 2016) The company’s success is based on three factors: they began without an integration model but then took it public and proceeded with a consolidation-based strategy; secondly, they established solid relationships with the OEM John Deere; and thirdly, John Deere was the premium leading brand in the North America with superiority in the market whose product was quite successful to sell. Moreover, Cervus Equipment’s approach differed from the other, being “an employee- and customer-centric model”, i.e. holding as close to the customer as possible combined with decentralized governing. Another striking feature of the company is purchasing new dealerships in far-reaching regions or those dealerships which didn’t utilize their potential. Later on, Cervus Equipment acquired a share in the transportation sector and even tried to go in the international market. Besides, it had advantages in comparison with the competitors, who suffered from consolidation challenges, low oil prices, etc. (Doiron, Schryer, 2015)
2) However, the future of the company may be not so bright. The development of “precision farming” presented new challenges to many companies, shifting the attention from dealerships to account management and “solution-based selling”. (Site-specific Farming, 2016) The famous employee and customer model faced challenges too, since many dealerships purchased were managed by “command-and-control by the owner” philosophy. Cervus Equipment had to change its business model and strategy in order to conform to the new rules of the future business world. Moreover, the oil prices fall were also detrimental to the company. (Argitis, Quinn, 2015) All in all, the company has much advantages and merits to meet future ready enough but it will require much efforts and imminent innovations and modifications of the old company’s system. (Doiron, Schryer, 2015)
Works Cited
Argitis T., Quinn G. (2012). Calgary's weakening housing market provides first sign of Alberta economic slowdown. (2015, January 12). Retrieved February 19, 2016, from http://business.financialpost.com/personal-finance/mortgages-real-estate/calgarys-weakening-housing-market-provides-first-sign-of-alberta-economic-slowdown
Cervus. (n.d.). Retrieved February 19, 2016, from http://www.cervuscorp.com/about-us.htm
Doiron, D., & Schryer, D. (2013). Cervus Equipment Corporation: Harvesting a New Future. In Strategic Management - Winter 2016 (pp. 89-107). Ivey Publisher.
Site-specific Farming. (2012). Retrieved February 19, 2016, from http://jefferson.ifas.ufl.edu/ag/site-specific-farming/
