Manufacturing at scale is hard and expensive. John Deere has been doing it for years, creating the most reliable tractors in the world for decades and has only recently decided to bend customers over to give them the ol' in-out-in-out.
A new brand would need to start from almost smaller than scratch, and have tens of million dollars of investment to even get started producing their own tractors. Then they'd have the uphill battle of a set of people who are extremely reliant on these machines to trust a new company with no track record with highly mission-critical equipment.
It would be an incredibly high-risk investment, with little to no guarantee of success.
Instead, as the article says - these farmers are not buying new tractors from anyone at the moment.
A new brand would need to start from smaller than scratch? So what? People start new companies every day.
It would require tens of millions of dollars of investment? So what? We keep being told how capital markets are just sloshing with cash looking for investment opportunities; that one of the reasons for rising inequality is due to the dearth of investment opportunities for the rich to use to seek returns.
They'd have trouble finding customers willing to give them a shot? So what? Every startup has this problem. You solve it by differentiating yourself from your incumbent competitor. When your competitor is so hated that they're getting negative press in national news outlets and state legislatures are being pressured to pass laws, your differentiation proposition is practically written for you.
I'm sure there are tractor upstarts out there trying to get funding. The question is, if they're not getting funding then why not, and why doesn't anybody know about them?
Hotels, Food, etc are very much Brand focused, and absolutely people have their preferred brand of Hotel and Fast Food (and despise other brands)
It takes a LOT of capital to build a company capable of manufacturing something like a tractor. And nobody will buy it initially because it has an unknown reliability record.
Look at the article, the farmers all make predictions about exactly how long those John-Deere tractors will last because they have roughly 40 years of experience working with them.
Deere doesn't have a monopoly. But they do have an incredibly strong brand.
Because modern capitalism is not a system that will magically fulfill customer needs, despite propaganda to the contrary. The way the system actually works is that the wants/needs of the capital-holders take priority over the wants/needs of other stakeholders (e.g. customers and workers). The other stakeholders are often forced to accept minimally acceptable deals, as long as the capital-holders are able to maintain barriers to entry (like large investments in capital).
A new market entrant will likely be tempted (eventually, if not immediately) to implement DRM just like Deere has. And Deere can always drop DRM temporarily if it will let them fend off a competitive threat.
Deere would need to decide whether to drop DRM to prevent your presale campaign.
If they do the consumer wins, and the new company can refund the presales and walk away.
If they don't you get your tractor manufacturing setup build and are then in the game.
The capital-holders did not (in most cases) get a "you are now free to hose your customers" card. The cases where they are free to do so are cases where there is a lack of competition. So "modern capitalism is not a system that will magically fulfill customer needs in the absence of competition". But if there is actual competition, and the wants of the capital-holders take priority over the wants of the customers, that's not going to work out well for the capital-holders.
But modern capitalism, at least in the American context, is a system being drained of competition. Competitors conspire to destroy it by merging and acquiring each other, and the deregulatory economic zeitgeist that's been in force for 40 years means the government has done little to foster it.
Markets tend towards equilibrium, and bitter competition is a kind of disequilibrium.
I agree, and I agree that it's a problem. But it's the "being drained of competition" that's the problem, not capitalism itself. (Well, capitalism itself is something that would prefer to drain itself of competition - even Adam Smith knew that - but for capitalism to work properly, there has to be competition.)
There seem to be two kinds of "draining of competition". First, there's the "just too good" kind. Microsoft, Google, Amazon, and (the subject at hand) John Deere may all be of this kind (though Microsoft did plenty of dirty tricks to get there). Economics of scale and network effects create positive feedback loops where one competitor can win it all. I don't really know what to do about that.
The second kind is government-caused (or at least -allowed) monopoly. There's only one electric company here, because the government thought it made sense for there to be. Some other monopolies are less directly government caused, but heavy regulations can make it so that only the largest firms have the resources to comply, and all the smaller firms die.
Government-allowed is when the government approves a merger of firms that are big enough that the merger significantly decreases (or eliminates) competition.
With the government we've had for the last 40 years, I don't know what to do about this kind, either.
- if there were an existing competitive market, that would help.
- if there were a clear long-term market, that might inspire competition.
But in this case, market forces caused the problem.
That's a nice hypothetical, but hardly helps these farmers. The real solution is America's most hated four letter word: regulation.
That can be said every time the market fails to adjust itself.
They look pretty cool, simple and repairable, but I don't know if they make ones the size of commercial John Deere tractors. All the Mahnindra tractors I've looked at were small.
Kubota
JCB
Kioti (I used to build these w/ my grand parents)