Business Strategy and Outlook| Dawit Woldemariam |
Agco is a pure-play agricultural equipment company, which has traditionally been focused on providing customers tractors. We think Agco will continue to be a top-three player in the agriculture industry. The company has been successful in emerging markets, where customers typically look for reasonably priced equipment. In developed markets, Agco faces competition from industry leaders, Deere and CNH, who provide customers high-quality and strong performing products, making it difficult for Agco to gain ground. The company’s peers help customers reduce the total cost of ownership through improved fuel efficiency, limited machine downtime and consistent parts availability.