Pioneer International is An Agricultural Machinery Expertise (Research Paper Sample)

Pioneer International is An Agricultural Machinery Expertise
Executive Summary
Pioneer International is an agricultural machinery expertise. Pioneer has offices in Lincoln and Omaha, Nebraska, as well as distribution hubs in a variety of smaller towns around the state. Pioneer's staff is about 500 people. The organization has attained unprecedented heights during its century of existence. The organization's success may be traced back to its fundamental ideals of honesty, dependability, and devotion. It's also worth mentioning that the company's growth and development are significantly supported by both internal and external factors. More corporate and operational changes are necessary to maximize ROI and distinguish the organization in a highly competitive industry. As a result, the firm needs development and upgrade strategies. Pioneer International should implement an appropriate diversification strategy to boost competitiveness and market share. The goal of this paper is to evaluate Pioneer International’s competitive position in its industry using Porter's Five Forces Model, the company's corporate citizenship, the nature of its direct and indirect competitors, the company's internal strengths and weaknesses, and the opportunities and threats to which it is exposed, and finally give recommendations.
Part A: Industry Assessment
The idea of healthy competition serves as the cornerstone of Porter's approach to studying industries. According to Bruij and Gerard (2018), a company's competitive position within its industry influences how lucrative it may be. According to Porter's theory, five elements that affect a company's competitiveness are the danger of new entrants, competition among existing enterprises, the threat of alternative goods or services, customer bargaining power, supplier negotiating power, and the relative strength of other stakeholders. Each force is given a level of hazard. As the risk worsens, a company's ability to make money and set prices will decrease. The Pioneer International forces analysis examines a company's current market position concerning various internal and external factors such as competitors, consumers, suppliers (vendors, partners), financial strength, future scope, and alternative solutions.
  The Threat of New Entrants
Pioneer International is unequalled in agriculture and construction equipment. It is critical to understand the barriers to entry in this industry to evaluate the possible threat posed by new entrants. Equipment from Pioneer International and competitors is expensive, as is the expenditure required to build the requisite infrastructure. Large areas of land, high-tech equipment, and trained workers are required. Furthermore, transportation is costly. Several factors contribute to high entry barriers.
Furthermore, because of the high fixed costs, incumbents have a considerable cost advantage due to economies of scale brought forth by mass manufacturing. The incumbents have a well-known brand as well as a strong distribution network. Due to all of these concerns, a new entry encounters enormous obstacles. Consumers, on the other hand, bear no costs when they switch brands. New entrants represent less of a threat to Pioneer International Company overall.
The Threat of Substitutes
Pioneer International makes specialist agriculture and construction equipment. There are few, if any, viable alternatives to the items produced by the sector. There is a significant performance difference between different agricultural hand tools. Hand tools have no alternative, which is why they are seldom seen on large farms or construction projects. Customers prefer to stick with industry-standard goods and services rather than move to cheaper alternatives. As a result, competition from other providers is low in the market category in which Pioneer International competes.
 Bargaining Power of Customers
The Pioneer International Five Forces Analysis says that customers have a lot of negotiating power. Pioneer International and others in the industry manufacture extremely distinctive and specialized heavy gear and equipment to suit the demands of their markets. Customers cannot "backward integrate" or manufacture these things independently. As a result of these concerns, customers have reduced bargaining power in pricing discussions. However, the things are relatively expensive and consume many customers' budgets. Because the target market might range from huge construction enterprises to amateur farmers, price sensitivity is very contextual. Members of the target market with lower incomes may be more price-conscious. They are free to switch from one supplier to another since there are no switching fees. As a result, there is a general lack of dedication to the brand. Customers have moderate to strong bargaining power in the agricultural and construction equipment markets.
 
Bargaining Power of Suppliers
Pioneer International obtains its materials via a broad supply network. On the company's specialized portal, current and prospective suppliers may register as business partners. The supply sources are widely scattered and easily accessible. There is a slight variation between the things offered by different vendors. The company may quickly terminate the contracts and switch to a different supplier without suffering significant financial damage.
Furthermore, as an extensive client (with annual global sales of USD 1 billion), Pioneer International has significant power over any contract with its suppliers. Furthermore, suppliers cannot forward integrate due to the significant capital investments required to compete in this market. Pioneer International and its competitors should not be worried about the overall bargaining power of the suppliers.
Competitive Rivalry
Pioneer International is up against some powerful competitors in the construction and agricultural equipment markets. Caterpillar, Komatsu, XCMG, Sany, and others are only a handful of the competitors. Because of the specialist nature of the industry, the prospective consumer base is relatively small. The market expansion allows established companies such as Pioneer International. As a result, the businesses' key objectives are market expansion and market share increase. Due to the high exit barriers in the business generated by the expenses of shutting down and paying off debts, less profitable enterprises are also encouraged to stay and eat into the profitability of the sector's top players. Because many of the clients are low-income small farmers, brand loyalty among them is unusual. If prices rise, people may easily switch to a competitor's services. Overall, competition in the construction and farm equipment industries is low to nonexistent and doesn't pose a severe threat.
Part B: Level of Corporate Citizenship
Corporate citizenship involves a company's social responsibility, which should be highlighted across the organization. This is especially true for Pioneer International and its employees, who strive to give back to the community locally and worldwide. According to Rendtorff (2019), firms need to take several steps to ensure that their corporate principles are represented in all it does daily. But to show that it cares about corporate responsibility, the company focuses on a few areas where it is vital.
Global Hunger Solutions
Pioneer International is committed to addressing global food security issues via innovative products and services. The firm understands that as the global population expands, so will the need for food. Pioneer International is dedicated to improving farmers' lives and productivity through increasing agricultural production. It encourages farmer training, value-chain enhancement, and financial services initiatives.
Education
Pioneer International understands the importance of education in preparing the next generation to confront the world's challenges. While Pioneer International thinks innovation is essential to its success, it also believes educational opportunities must exist to inspire, develop, and teach the next generation of innovators. Pioneer International is dedicated to boosting the number of at-risk teenagers who complete secondary education in its communities. The purpose of this corporate citizenship act is to increase the number of people who choose to pursue careers and degrees in agriculture.
Community Enhancement
The organization knows that running a successful business is suitable for employees and provides many opportunities for building good communities. Akbari and McClelland (2020) say a company’s strength is only as great as the community in which it works. As a consequence, Pioneer International is firmly devoted to giving back not just to its community but also others worldwide.
Volunteering Throughout the World
Pioneer International offers a global volunteering program encouraging employees to give back to their communities. As part of its plan to raise living standards worldwide, the company has set a goal of getting one hundred thousand verified volunteer hours done by 2022.