Caterpillar Inc.--Early 1990s
The assessment of opportunities and threats is the foundation upon which planners develop strategies. The Caterpillar case illustrates some of the problems associated with the identification of opportunities and threats, especially in a situation where previous successes are notable. Attempting to pattern long-term growth on the basis of previously valid assumptions is one of the classic dilemmas facing the strategic planner whether in consumer or organizational markets.
In addition, the shareholders at the big three automakers have sometimes had to force necessary changes.
Evaluate Caterpillar Inc.'s marketing and management strengths and weaknesses.
Caterpillar's Strengths:
* Product-orientation, widely recognized, technologically superior product line; immediately integrating latest advances.
* Most extensive dealer-service-parts network in the industry; recognized as one of the most important reasons for buying Caterpillar equipment.
* Market share leader for earth-moving machinery.
* Brand equity--the name Caterpillar has evolved as synonymous with the finest equipment available.
Caterpillar's Weaknesses:
* U.S.-based manufacturer with higher labor costs.
* Caterpillar has followed a policy of promotion from within. Because of this policy, the management team has a conservative, introspective perspective toward worldwide operations. In addition, the company has extensive global operations but its senior executives are U.S. citizens. Executives appear trapped in a classic case of marketing myopia, especially as Caterpillar looks to aggressively expand in Eastern European and Asian markets.
* Labor-Management adversarial approach to contract talks.
* Caterpillar receives majority of ...
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..., lawn mowers
(Students should recognize that Caterpillar has absolutely no experience or expertise in these markets. It might have to establish an entirely new distribution channel to market these products but could probably capitalize on the Cat name.)
In summary, while Caterpillar has undergone major changes in response to the changing competitive environment, the company can not return to its insular attitude towards competing in this industry. There are many challenges remaining for Caterpillar, if the company is to compete successfully in the 1990s.
Harvard Business School, July 1991. Caterpillar Inc.: George Schaefer Takes Charge
Caterpillar Company Information. Mission. Caterpillar. Web:http://www.cat.com/about_cat/company_information/03_mission/mission.html
Komatsu Code of Business Conduct. Komatsu, Inc. http://www.komatsu.com/profile/index.html
Caterpillar, Inc. primary income is made from sales of machinery and engines . These sales are made to clients in construction, agriculture, and manufacturing industries. Caterpillar divides their sales based on geographic location where the
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Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition. (13th Ed.). Boston, MA: McGraw-Hill/Irwin. ISBN-13: 9780078029295
Since its establishment in 1925, Caterpillar Inc. has built a name in the construction and mining industry as an excellent manufacturer of equipment for a wide range of applications. Today, the company is the market leader in the industry and now it targets to expand its operations globally. In the various emerging economies such as India, China, and Brazil, Caterpillar Inc. has sported potentially profitable opportunities which it needs to exploit before its competitors establish their presence in those markets (Rome & Levine, 2006). In this regard, Caterpillar Inc. has to have an effective business strategy and contingency plans as well as an effective implementation plan. This paper shall discuss the components of the implementation plan which Caterpillar Inc. needs to adopt in addition to the organizational management change strategies that would enhance successful implementation. The paper shall also outline a risk management plan including contingency plans necessary for defusing any identified risks. The discussion shall also include an outline of the success factors, budget, and forecasted financials which Caterpillar needs to base its expansion plan on.
Caterpillar Inc. - Strengths and Weaknesses Caterpillar Inc., sought to better determine customer demand by leveraging the Internet. Using i2 Demand Chain Management, Caterpillar created an online dealer storefront that is accessible to both dealers and end customers, and the company has expanded its sales coverage, reduced the cost of sale, and increased productivity. Caterpillar’s Building Constructions Product Division needed to predict and rapidly respond to customer demand. The company wanted to empower its dealer network to provide the highest levels of service to the end customer. Company executives knew that the Internet was critical to their strategy. Caterpillar wanted to leverage the Internet to provide more visibility into customer buying habits. In doing so, it could save millions of dollars in inventory by building and configuring those products that customers demand, rather than stocking excess inventory. The company wanted to promote specific product lines and associated work tools using a combination of traditional (dealer) and nontraditional (Internet) channels th...
No company that falls behind the competition is guilty of standing completely still. But sometimes our efforts fail because of the level of commitment to change.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
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Prinet, E. (2010). Buyology: Truth and Lies About Why We Buy by Martin Lindstrom. Journal
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