Deere & Company

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This analysis of Deere & Company is part of our coverage of the world’s 10,000 largest companies.

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Company Description

Deere & Company is a Fortune 500 company headquartered in Moline, Illinois. Founded in 1837, it is one of the world's largest manufacturers of agricultural, construction, and forestry machinery and equipment. The company's main products and services include tractors, combines, forestry equipment, lawn care equipment, and other related services. Deere & Company serves markets in more than 160 countries and territories worldwide.

Industry Overview

Deere & Company is one of the largest equipment manufacturers in the world, operating in the Agriculture and Construction machinery industry. The global market size of this industry is estimated to be around $268 billion USD, with Deere & Company employing over 64,000 people in its operations across the United States, Canada, Mexico, Brazil, Argentina, Germany, France, the United Kingdom, and many other countries worldwide.

Industry Classification

In terms of formal classification, Platform Executive has tagged Deere & Company as a business operating within the Heavy Equipment industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Agricultural equipment and parts
  • Construction equipment and parts
  • Forestry equipment and parts
  • Golf course and turf care equipment
  • Commercial worksite products
  • Consumer lawn and garden equipment
  • Financial services
  • Advanced technology and analytics solutions
  • Engineered components and drivetrain systems
  • Diesel engines and powertrains

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Competitive Landscape

Deere & Company operates in a highly competitive environment within the agriculture and construction industries. The company faces competition from other leading manufacturers of farm equipment, construction machinery, and related products. These competitors have established brand reputations and loyal customer bases, making it challenging for Deere & Company to gain market share. Additionally, the company faces pressure from new and emerging players in the market, who often offer innovative and cost-effective solutions. The global nature of the market also adds to the competitive landscape, as Deere & Company must compete with both domestic and international companies. In this dynamic environment, Deere & Company must continuously innovate and adapt to stay ahead of its competitors.

Key Competitors

We have identified the following organisations as being key competitors:

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Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Customers: Deere & Company's customers include farmers, ranchers, and other agricultural professionals, commercial and residential landscapers, construction and forestry operators, and recreational users.

2. Employees: Deere & Company employees are essential to their success and have been the foundation of their success for over 180 years.

3. Suppliers: Deere & Company relies on a network of suppliers to provide parts and components for their products.

4. Shareholders: Deere & Company shareholders are invested in the success of the company and benefit from its growth.

5. Governments and Regulatory Bodies: Deere & Company is subject to various government regulations, including safety standards, emissions regulations, and trade agreements.

6. Communities: Deere & Company is committed to giving back to the communities in which they operate and has invested in local infrastructure and initiatives.

Customers and Cohorts

The main customers of the organisation include:

  • Farmers
  • Landscapers
  • Construction Professionals
  • Municipalities
  • Researchers
  • Golf Course Superintendents
  • Recreational and Rental Customers
  • Commercial Mowing and Turf Care Professionals
  • Forestry Professionals
  • Industrial Equipment Users

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Financial Strength: Deere & Company is one of the most financially sound companies in the world with a strong balance sheet and access to capital. This financial strength allows for investments in research and development, as well as capital expenditures to expand production capabilities and grow market share.

Innovative Product Line: Deere & Company has a long history of introducing new products and services that meet the needs of customers. Deere has consistently invested in research and development to remain a leader in the agricultural and construction equipment industries.

Global Presence: Deere & Company operates in over 160 countries and has an extensive global dealer network. This presence allows Deere to serve customers around the world and to distribute its products in an efficient and timely manner.

Brand Recognition: Deere & Company has an iconic brand that has been built over many years. The brand is synonymous with quality, reliability, and durability. This recognition helps to generate customer loyalty and allows Deere to command premium pricing for its products.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as Deere & Company as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the Deere & Company business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Brand recognition and presence across multiple markets, such as agriculture, forestry, commercial and consumer: A
  • Proven track record of innovation and customer satisfaction: A
  • Positive customer sentiment: A
  • Robust marketing and communications: A
  • Wide range of products and services: A
  • Dedicated customer service: A
  • Ability to adapt to changing markets: A
  • Brand Strength Score: A

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: Deere & Company offers a wide range of products and services, including agricultural and construction equipment, forestry machinery, and lawn and garden equipment. Their products are known for their durability, reliability, and advanced technology, making them a top choice for farmers and construction companies.

2. Price/Fees: Deere & Company follows a premium pricing strategy for their high-quality products, which allows them to maintain a strong brand image and attract customers who are willing to pay for superior performance and longevity. They also offer financing options and discounts to make their products more affordable for customers.

3. Place/Access: Deere & Company has a strong global presence, with a network of dealers and distributors in over 180 countries. This allows them to reach a wide range of customers and provide easy access to their products and services. They also have an online store and mobile app for convenient purchasing.

4. Promotion: Deere & Company uses a combination of traditional and digital marketing strategies to promote their products and services. This includes advertising in trade magazines, attending trade shows, and utilising social media and search engine marketing to reach potential customers.

5. Physical Evidence: The physical evidence of Deere & Company's products is their high-quality, durable and advanced machinery, which speaks for itself in terms of the company's commitment to providing top-notch products. The company also has a strong brand image and reputation, which serves as evidence of their quality and reliability.

6. Processes: Deere & Company has a well-established and efficient manufacturing process, ensuring high-quality products are produced in a timely manner. They also have a strong customer service process in place, providing support and assistance to customers throughout the sales and after-sales process.

7. People: The people at Deere & Company, including their employees, dealers, and partners, are a key component of their marketing model. They are highly trained and knowledgeable about the products and services, providing excellent customer service and building strong relationships with customers.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Agricultural technology services: Deere & Company could create services that provide farmers with access to precision agriculture technology, such as remote sensing, GPS tracking, and soil and weather monitoring.

Precision farming equipment: Deere & Company could develop a line of precision farming equipment, such as automated tractors, robotic harvesters, and automated irrigation systems.

Online/mobile platform for farmers: Deere & Company could develop an online/mobile platform for farmers, offering resources like crop management software, agronomic advice, and market analytics.

Green energy products: Deere & Company could develop a line of green energy products, such as solar panels and wind turbines, for use on farms.

Consultancy services: Deere & Company could offer consultancy services to farmers on how to maximise their yields and reduce their costs.

Maintenance services: Deere & Company could create a range of maintenance and repair services for their agricultural machinery.

Agricultural finance services: Deere & Company could develop agricultural finance services to help farmers access the capital they need to purchase machinery and other farm equipment.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. AGCO Corporation
2. CNH Industrial
3. Caterpillar Inc.
4. Kubota Corporation
5. Yanmar Co., Ltd.
6. AGCO Parts
7. Cummins Inc.
8. John Deere Financial
9. Trimble Inc.
10. BASF SE

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

The Porters 5 forces model attempts to analyse the competitive environment within an industry. The model includes five forces which are used to determine the level of competition within an industry. The forces are:

1. Threat of new entrants: The threat of new entrants is LOW. The industry is capital intensive and requires significant investment to enter. Additionally, the industry is dominated by a few large companies with significant brand recognition.

2. Bargaining power of buyers: The bargaining power of buyers is MODERATE. There are a number of large buyers in the industry, but they are not HIGHLY concentrated. Additionally, buyers have some alternatives to Deere products.

3. Bargaining power of suppliers: The bargaining power of suppliers is MODERATE. There are a number of suppliers in the industry, but they are not HIGHLY concentrated. Additionally, suppliers have some alternatives to Deere products.

4. Threat of substitute products: The threat of substitute products is LOW. There are few substitutes for Deere products. Additionally, Deere products have a HIGH degree of differentiation.

5. Competitive rivalry: The competitive rivalry is MODERATE. The industry is dominated by a few large companies, but there is a MODERATE level of competition.

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Deere & Company business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. Deere & Company has a long history dating back to 1837, which gives it a strong brand identity and reputation.

2. Deere & Company is a diversified company with a presence in a number of different industries, which provides it with financial stability and a broad customer base.

3. Deere & Company has a strong global presence, with operations in more than 30 countries.

4. Deere & Company has a strong commitment to innovation and R&D, which has resulted in a number of new products and services that have helped it to maintain its position as a market leader.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Expand into emerging markets. Deere & Company could benefit from increasing their presence in emerging markets such as India, Russia, and China, which are expected to see rapid economic growth in the coming years. By establishing relationships with local customers, Deere & Company could gain a foothold in these markets and take advantage of the expanding demand for agricultural equipment.

2. Invest in digital technology. Deere & Company should invest in digital technologies to help improve their operational efficiency and optimise customer service. This could include the use of data analytics, connected sensors, and robotics to automate processes, as well as the development of mobile applications to improve customer engagement.

3. Develop partnerships and alliances. Deere & Company should explore partnerships and alliances with other companies in the agricultural industry to gain access to new technologies and capabilities. This could include joint ventures, acquisitions, and strategic alliances with suppliers, distributors, and other companies in the agricultural industry.

4. Introduce new products and services. Deere & Company should explore new product and service offerings to meet the changing needs of their customers. This could include the introduction of new features, such as GPS tracking and remote monitoring, as well as the development of new services, such as precision farming.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus on customer needs and wants – Deere & Company was more concerned with what they wanted to produce rather than what their customers actually needed or wanted.

2. Lack of innovation – Deere & Company failed to keep up with the competition in terms of product innovation and failed to bring new, innovative products to market in a timely manner.

3. Poor quality control – Deere & Company products were often of poor quality, which led to customer dissatisfaction and negative word-of-mouth.

4. Inefficient operations – Deere & Company’s manufacturing and distribution operations were often inefficient and wasteful, leading to higher costs and lower profits.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Increase in direct competition: As the agricultural industry continues to become increasingly competitive, Deere & Company faces the threat of increased competition from domestic and foreign companies. This could lead to a decrease in market share, reduced sales, and lower profitability.

2. Economic downturns: The agricultural industry is highly sensitive to changes in the global economy. In the event of a recession or economic downturn, Deere & Company could face reduced demand for its products, decreased sales, and lower profits.

3. Technological advancements: As technology advances, Deere & Company may face the threat of new competitors entering the market with more advanced products. This could lead to decreased market share, reduced sales, and lower profitability.

4. Supply chain disruptions: Deere & Company relies heavily on its supply chain for the production of its products. In the event of a disruption in the supply chain, the company could face increased costs, delays in production, and decreased sales.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Deere & Company. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Deere & Company, as well as areas where the company needs to improve its operations or strategy.
Company: Deere & Company is one of the world’s leading providers of advanced products and services for agriculture, construction, forestry, and commercial and consumer markets. The company manufactures and distributes a broad line of equipment and related services for the agricultural, construction, forestry, landscaping and turf care industries.

Collaborators: Deere & Company partners with a variety of agricultural, construction, forestry, and other industry organisations and companies to provide quality products and services. The company also works closely with agricultural universities, research centers and other stakeholders to develop innovative technologies and products designed to meet the needs of farmers and other customers.

Customers: Deere & Company’s primary customers include farmers, ranchers, landscapers, construction professionals, and other professionals in the agricultural and construction industries. The company also sells its products and services to consumers through retailers and online outlets.

Competitors: Deere & Company competes with other agricultural, construction, and forestry equipment manufacturers such as Caterpillar, AGCO, and Kubota.

Content: Deere & Company provides a variety of content, such as educational materials, product information, and industry news, to customers, partners, and other stakeholders. The company also offers advanced technologies and products to help farmers and other customers maximise productivity and efficiency.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Deere & Company as having an innovation score of C3.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on Deere & Company forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

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Disclaimer

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Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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