Caterpillar Inc.--Early 1990s Essay

Caterpillar’s extensive competitive advantage allows the organisation to focus their attention on their main customers and huge efforts are being put in nationwide and globally with larger organisations and various countries around the globe.

Recognizing an organization’s alternatives for growth is an important process for companies. By evaluating and selecting the competitive advantages within a market a company can distinguish themselves from their competition. For an organization the “grand strategies indicate the time period over which long-range objectives are to be

threats and opportunities that must be properly addressed in order to prepare the company for the

A majority of the attractiveness stems from the abnormally low buyer and supplier power. However, this gain is offset by the current low barriers of entry and high competitive rivalry. In order to remain competitive, incumbents must (1) invest heavily in research and development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results.

Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.

The Opportunities discussed below will utilize these strengths while keeping in mind the company’s weaknesses and

It is critical for any firm to identify its core strength and weak spot in it. Furthermore, company should be able to identify opportunities in market not seen by other competitors and must act upon it. Additionally, market poses threat to company also. This should be tackled by the company before it is too late to act upon. Ad-Lider should be

Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.

The corporate strategy of the business diversification is to create a synergy to achieve more performance under a single umbrella rather than diverse business units (SNU, 2016). A business diversification is to build the company shareholder value when the independent business units can perform under a single corporation as an umbrella organization instead of independent parents or a corporation. A diversified organization has many business units and each business units have its own business level strategy irrespective of whether they are related or not. A successful business diversification not only spreads the business risk across the diverse units but also adds a long term economic value to the company. The strategy for starting a new business is based on industry attractiveness test, the cost of entry and the better off test (Thompson, Peteraf, Gamble, and Strickland, 2016).

Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).

Our competitive advantage is that high quality of product, lower cost of solar panel, installation and maintenance, unique financial payment option and total coverage on-stop service, making it more reliable and convenient for customers than any other solar panel companies.

Caterpillar Incorporated is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Caterpillar's headquarters are located in Peoria, Illinois, United States. The company operates in three principal lines of business: machinery, engines, and financial products. The machinery segment includes the design, manufacture, marketing, and selling of all kinds of machinery such as; tractors, forestry and mining machinery, off-highway trucks, and paving products. The machinery segment also includes logistics services for other companies. The second business segment that Caterpillar operates in is engines. This includes the design, manufacture, marketing, and

There are several objectives that need to be pursued during the formulation and implementation of the business strategy by Caterpillar Inc. The first and most important objective is to increase its market share which will go hand in hand with increased revenues. Indeed for any business, the need to gain more profit is at the heart of any venture. In order to successfully establish itself in new geographic markets, Caterpillar Inc. has to implement effective competitive strategies. In this regard, Caterpillar Inc. need to take advantage of its good reputation that has been built through excellent customer service and dealership to build confidence in the customers in the new markets (Martin, 2006). At the same time, Caterpillar Inc. has to work to convince various governments that it is the right company to be given government contracts and to be allowed to operate in these new markets.

The planning school of thought is a strategy that emphasizes the need for an organization to ensure that its business strategy is in alignment with the environment that it operates. In other words, an organization’s strategy must ‘fit’ the environment that it chooses for a business operation. A meticulous analysis of both the internal and external environments is considered in the planning school of strategy. Furthermore, the planning school of strategy often requires details that could probably make an organization not flexible to a market even when conditions demands flexibility (Barnat, 2014). Additionally, this strategy employs organizations to implement various marketing theories and Product Life Cycle in understanding the maturation of the market so that with past trends coupled with

In terms of strengths, the company has the advantage of being the market leader, although