Caterpillar Company: Business Strategy
Caterpillar has been building the world infrastructure through partnerships with their Cat dealers worldwide. Through this, the company has been able to build and develop sustainable and positive growth on every part of the continent. The company has a wide presence in several locations over the world where it serves and protects the customer base by responding to their needs.
It is the world’s largest maker of construction and mining equipments, industrial gas turbines, diesel and natural gas engines. In addition to these, the company boasts of being a global diverse technology leader. The company operates on a global scale in all the continents. Since the company has been a global leader with brand portfolio, it is forever setting higher standards (Caterpillar, p. 3).
To maintain a stronghold in foreign markets the company has maintained a watchful eye on the ever-changing regional dynamics (Caterpillar, p. 3). On the other hand the company has responded to the market by coming up with new products through innovations and manufacturing flexibility. It has also offered a wide range of products to the global market to suit the different demands of the market.
Caterpillar operates in offices and facilities in a bid to reinforce its global presence. Their customers, employees, and other stakeholders have worked hard enough to ensure that the company builds a better world (PR Newswire, p. 3). Most of the products are manufactured in the US and in other locations in 23 countries.
It has been building a global brand through market success and innovation. This has also improved because of the global network of dealers. The company capitalizes on major mining operators and independent contractors (Caterpillar, p. 5). The dealerships revolve around communities that the company operates. In the end, the company appreciates the diverse firms that help in expanding the business.
Another strategy that the company has used involves the support of international trade among countries. This has opened up the foreign markets for the goods produced and increased job opportunities for the company and suppliers. In governing its activities caterpillar has ensured compliance with all the laws in the countries it is operating.
To ensure the company conforms to good practices there has been a global team to oversee this. This is mainly aimed at constantly reviewing the business practices to yield high governance standards worldwide. A dedicated management team has been responsible for the high growth that the company has recorded (Caterpillar, p. 6).
On the other hand, the company’s board of directors has appointed committees to oversee the prosperity of the ventures. In the process, the operations have been strengthened for efficiency. The company reviews its standards to put in place effective cooperate governance.
The company is pursuing a global strategy from the way it seeks to increase its business. It has managed to establish business in six continents in 23 countries. This has improved its profitability as its exports reached $12.7 billion (Caterpillar, p. 5). Most of the products are manufactured in the US and in other locations in 23 countries (PR Newswire, p. 2).
Through market success and innovation, it has been possible to build a good network of business partners. To maintain a stronghold in foreign markets the company has maintained a watchful eye on the ever-changing regional dynamics. The management team is credited for improving the company performance.
Reference List
- Caterpillar. Corporate overview. 2010.
- PR Newswire. MillerCoors Leads With Waste Reduction Achievements. 2009.