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This summary provides the most significant points of Caterpillar's strategic plan. It includes both solving present problems and decisions of how to use company's opportunities in the future

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Executive summary of a strategic plan This summary provides the most significant points of Caterpillar's strategic plan. It includes both solving present problems and decisions of how to use company's opportunities in the future. Company's strategy must directed on saving its leading positions in existing markets and improving in the developing markets. The construction and heavy machinery market generated total revenues of about $70 billion in 2000. Caterpillar made $20 billion of the industry revenue. Caterpillar is a leader in the construction and heavy machinery industry in the world with about 45% market share. But now there are some problems within the company which may lead to declining the market share and losing key positions of this market. ...read more.


China and Korea are two of the most perspective markets in this region and it is very important to have good business relations with local companies. Another problem connected with lack of innovations and outdated production methods. The fact is that Asian rivals (Komatsu) use more modern technologies of production with cheap labor. It affords them to invest more money in research and development. Caterpillar must review their production placement policy in order to produce their goods more efficient. If we look at the map of spreading Caterpillar's production in the world we can see that most of factories are based in US and Europe. But now the most perspective markets are Asia and South America. ...read more.


Also it is good way to build strong dealers network and gain competitive advantages. If we try to define opportunities of the company we could say that there are many positive factors for world construction market. In near future there would be such huge perspective markets as South America, China, India, Korea, and East Europe. Caterpillar has opportunity to become the leader in these markets. But becoming a leader means that company has to have the best products, strategy and management style. The strategy making process is the most important and most vulnerable aspect of the company and all recourses should be directed to make it better, stronger. The good strategy of the company solves majority of the internal problems and the success of the company directly depends on its strategy. ...read more.

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