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Caterpillar Swot Analysis

Caterpillar, Inc. Write a paper in APA format analyzing and answering the following questions. In addition, it is helpful to use the Internet to search for information on Caterpillar Inc. Finally, using the corporate website will provide great insight into the organization, its products, and marketing strategy.

(1) Why was Caterpillar able to meet Japanese competition and succeed where other major US manufacturers failed?

(2) What did Caterpillar do that the big three US automakers have not done?

(3) Using a SWOT analysis, summarize Caterpillar's marketing and management strengths and weaknesses.

(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?

(b) If the US market is close to saturation, should Caterpillar maintain the majority of its manufacturing operations in the US?

(5) Identify the strengths and weaknesses of Komatsu and Caterpillar's other major competitors.

(6) Where are the major growth opportunities for Caterpillar, Inc. in the international market? Identify the risks of pursuing these growth opportunities and the risk reduction strategies which Caterpillar could pursue.

(7) Caterpillar has been a major corporate voice in the call for the reduction of trade barriers not only in the US but also worldwide. Explain the benefits to Caterpillar if trade barriers were eliminated.

(8) Caterpillar, Inc. has had severe labor difficulties during the past decade. What can the company do to establish a more cooperative environment in its US factories?

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The attached guide will further assist with your studies and expand your knowledge in this area.

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 relationship with the union, giving much of the credit for the company's financial success during his reign to the excellent support provided by all of its employees." (Caterpillar 2009)

This information is significant as Barton saw an issue and reinvented the company's focus to focus on different areas of the business. When one portion of the business is faltering or lagging, a good manager will look at the company's strengths and focus on those strengths as he or she restructures the faltering portion of the business. That is exactly what Barton did and the success he has had in his tenure is impressive.

What did Caterpillar do that the big three US automakers have not done?

The Washington Post has stated, "Caterpillar has come up with the model for how a big American manufacturing company can not only survive, but prosper, in a highly competitive global economy." (Pierlson 2006) While others failed, Caterpillar has had excellent leadership. Leadership that looked at corporate American greed and reversed the abuse process.
Using a SWOT analysis, summarize Caterpillar's marketing and management strengths and weaknesses.

Strengths
The marketing strengths are significant. "In ...

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Caterpillar SWOT Analysis

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