Heavy Construction Equipment example essay topic
333 words
Caterpillar, Inc. (Cat) is the global leader in the heavy construction equipment industry. In addition to that, it has a meaningful presence in several other global industries such as agricultural equipment, diesel engines, and equipment financing. Due to the unexpected changes of the heavy construction equipment industry, along with the world recession of the early 80's, Caterpillar had to face a major decline in growth of its main business segments during the 1980's. The worldwide unit sales of construction machinery fell an average annual rate of 4.2%. The company registered a $180 million dollar loss that same year, the second loss since its incorporation in 1925.
In addition to that, the conditions let the arrival of new competitors in the field such as Komatsu, which came along competing strongly in price and new products. Miscalculating the length and effect of the world recession, in 1984 Caterpillar found itself having 75% more capacity than in 1973, but only 25% more production. Competitive advantages "X Provide the industry's highest and best quality heavy construction equipment. "X Best after-sale service: provide worldwide information within the company about product and parts availability and feedback from customers. "X International distribution: 30 plants in a dozen countries and sale offices, dealer network and distributors in most of the rest of the world. "X Management of relations with governments and private customers who has major constructions and mining projects in developing countries.
"X Strong dealer and service network used to support the marketing effort of the equipment maker and provide it with valuable market information". "I To be more flexible manufacturing and more offshore production: to reduce exposure to exchange rate fluctuations and reduce vulnerability to US conditions in general". "I To enter to Japanese market by doing a join venture with another company in that country". "I To buy out other small companies of the same business which are in a bad financial situation.
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