Essay about Case Study: Caterpillar Inc.

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1. Why was Caterpillar able to meet Japanese competition and succeed where other major US manufacturers failed? Due the leadership of Glen Barton, who was with Caterpillar from 1964 to 2004? "Barton began his direction of Caterpillar at a time when there was weakened demand for its products in many markets around the world. By quickly redirecting its efforts into areas that showed more demand (such as smaller machines and truck engines), the company substantially outperformed its stiff competition. In 1999 Caterpillar was able to return a respectable profit to its stockholders, even though many industries served by Caterpillar were in the middle of or emerging from recession. Barton proceeded to lead the company to an improved…show more content…
Strengths The marketing strengths are significant. "In 1992 Caterpillar formed a joint venture with Mitsubishi Heavy Industries (MHI) Ltd to combine technological, financial and marketing strengths in the production of materials handling equipment." (Caterpillar 2009) What marketing genius. Mitsubishi Heavy Industries, a Japanese company and Caterpillar, an American company, joining forces on more than one level. This joint venture brought Caterpillar to the next level and to the hard to penetrate Japanese market. The company's business decisions have been wise and by partnering with MHI, the same marketing budget is now doubled or even tripled, depending upon the agreement. The strengths of the company's marketing are strong and surpass the competition. Weaknesses The weaknesses are too few to mention, as the company has posted another impressive quarter. AG Equipment Magazine is quoting that "Caterpillar's revenues are up 34%." (2008) 4. In the United States, Caterpillar is competing in a mature industry. This means that for Caterpillar to increase its US market share, it must take sales from competitors, rather than increase the size of the market. (a) Are there other major growth opportunities in the domestic market which have not been identified by Caterpillar? As rural America is becoming suburban America, there are many new cities and communities being built out of woods and barren land where
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