Caterpillar is an American organization which plans, makes, markets and offers apparatus, motors, financial and insurance to clients through an overall merchant network Caterpillar is the world's driving producer of development and mining hardware, diesel and regular gas motors, mechanical gas turbines and diesel-electric locomotives. With more than US$89 billion in resources, Caterpillar was positioned number one in its industry and number 44 overall in the 2009 Fortune 500.
Some of the key steps that lead to Caterpillar becoming the industry leader in earth-moving machinery are the strategic decisions, strong foundation and sustainability. The story of caterpillar dates back to the late 19th century when Daniel Best and Benjamin Holt each were experimenting with ways to fulfil the promise steam tractors held for farming. Prior to the merger that formed Caterpillar Tractor Co. in 1925, The Hold Manufacturing Company and C.L. Best Tractor Co. had individually pioneered gasoline-powered track type tractors.
The first Diesel Sixty Tractor was produced in 1931. By 1940, Caterpillar’s product line had expanded to include motor graders, blade graders, elevating graders and electric generator sets.
During World War 1, Holt’s track-type tractors were in great demand by the Allies for pulling and supply wagons through harsh conditions. Troops in World War 2 also relied on Cat equipment, including track-type tractors, motor graders, generator sets and special diesel engines for M4 tanks.
The post war period ushered in numerous new products and the company’s first foreign subsidiary. In 1950, the establishment of Caterpillar Tractor Co. Ltd. In Great Britain was the first of many overseas operations created to help manage foreign exchange shortages, tariffs and import controls, and to better serve customer needs around the world. For the same reasons, manufacturing facilities were later established in strategic regions throughout the world.
In 1931, the company created a separate engine sales group to market diesel engines to other equipment manufacturers. This group was replaced in 1953 with a sales and marketing division to better serve the needs of a broad range of engine customers. Today, Caterpillar is a leading player in the diesel engine and power generation markets. Engine sales now account for approximately one-third of the company’s total sales and revenues. Caterpillar engines power everything from on-highway trucks, buses, ships, pleasure boats and locomotives to earthmoving constructions and material-handling equipment. Through generating systems, Cat has also supplied power to areas inaccessible to utility power grids, including off-shore oil drilling rigs, remote mines and isolated communities. Cat generator sets provides emergency power to hospitals, schools, factories, office buildings and airports. Caterpillar is also the leading supplier of industrial gas turbines through its subsidiary Holt tractors had turn out to be no doubt understood amid World War I. Military contracts framed the real piece of the organization's generation. At the point when the war finished, Holt's arranged extension to address the military's issues was suddenly ended. The substantial obligation tractors required by the military were unacceptable for agriculturists. The organization's circumstance compounded when big guns tractors were come back from Europe, discouraging costs for new gear and Holt's unsold stock of military tractors. The organization battled with the move from wartime blast to peacetime bust. To stay with the above water, they acquired intensely. (Wikipedia, 2015)
C. L. Best Gas Tractor Organization, framed by Clarence Leo Best in 1910 and Holt's essential rival, had amid the war gotten government bolster empowering it to supply ranchers with the littler rural tractors they needed. Thus, Best had picked up an extensive business advantage over Holt by war's end. Best additionally accepted significant obligation to permit it to proceed with development, particularly generation of its new Best Model 60 "Tracklayer".
Both organizations were unfavourably affected by the move from a wartime to a peacetime economy, which added to an across the nation sadness, further hindering deals. On December 5, 1920, 71-year-old Benjamin Holt passed on following a month-long illness. Solar Turbines Incorporated, purchased in 1981. (Wikipedia, 2015)
One of the major reasons CAT was very successful was its outstanding quality. “We at Caterpillar are committed to offering products of the highest quality and the most advanced technology to our customers worldwide. We strongly believe high quality is achieved by listening to the “voice of the customer” and by continuously innovating so as to deliver superior products and services. We aim to have all of our employees committed to “Total Quality Management”. For us, quality is of paramount importance to our corporate strategy because it ensures the most loyal customers. “ (Wikipedia, 2015)
Reliability and after sale services contribute on the overall growth of the organization. For example, you depend on your machine control and direction framework to keep your operations running at top productivity. At the point when a segment need repair, Caterpillar has choices to recover your frameworks up and running in a matter of seconds. The Cat Machine Control & Direction Repair Centre gives financially savvy, convenient repairs of presentations, GNSS and laser collectors, radios, links, receiving wires, sonic tracers and impact opening drill framework segments. (Cat.com, 2015)
These are some of CAT’s many successes that help in the growth of the company. However in the 1980’s things turned upside down due to unwelcomed competitors in the market. International company’s like Komatsu gained market share.
The top competitors that Caterpillar confronted within the Japanese business sector were Komatsu and Mitsubishi. The organization of Komatsu was particularly risky to Caterpillar because of the way that it was the second biggest EME Company worldwide. Because of this threat Caterpillar chose to join hands with the Japanese advertise through a joint endeavour with Mitsubishi. The consequence of this was that Caterpillar and Mitsubishi Heavy Industries Ltd. shaped one of the first joint ventures in Japan to incorporate incomplete U.S. ownership. Caterpillar Mitsubishi Ltd. begun production in 1965, has been renamed Shin Caterpillar Mitsubishi Ltd., and is currently the No. 2 creator of development and mining gear in Japan.
Komatsu now comprehended the opposition it confronted yet held a 60% piece of the overall industry inside of Japan. With the danger of the Caterpillar/Mitsubishi endeavour occurring Komatsu chose to endeavour a revitalization of the organization. Since Komatsu primarily sent out whole machines, the organization soon understood that expected to likewise venture into different markets and set up get together plans in spots like Brazil and Mexico.
The administration staff in Komatsu started to set up business associations with different nations, essentially concentrating on underdeveloped nations and the socialist expresses that existed amid that time. Komatsu needed and compelling merchant system, which constrained the organization to depend on nonexclusive dealerships. This eventually prompted Komatsu accepting smaller contracts than Caterpillar. Caterpillar's worldwide merchant system gave a key aggressive edge – clients manage individuals they know and trust. This is because of the way that all dealerships are independent and mainly claimed. Numerous have associations with their clients that compass no less than two eras. Caterpillar merchants serve gear, administration and financing requirements for clients in more than 200 nations. The rental administrations are additionally offered at more than 1,200 outlets around the world. (Mission Manager, 2015)
Around 1982 the firm lost $6.2 billion, laid of thousands of workers, closed several factories and suffered a long strike all due to competition. CAT has almost gone bankrupt due to the high prices and inflexible bureaucracy. According to The New York Times there were several strikes against CAT Inc. And I quote “Union members at Caterpillar, the world's largest maker of heavy equipment, rejected a contract offer today, in a move that will let them have their old jobs back without gaining anything after a bitter 17-month strike.” (Nytimes.com, 2015)
“Union members rejected the latest company offer as the United Auto Workers' central bargaining committee voted to send the 8,700 strikers back to work. Union officials would not say why they ended the strike.” (Nytimes.com, 2015)
It seems to me that Caterpillar Inc. always finds a solution for every problem no matter how big or small it is. It makes decisions strategically and then takes action. Their strong foundation has never failed to prove that they can get through practically anything.
CAT’s vision for 2020 is:

• We are recognized as the leader everywhere we do business.
• Our products, services and solutions help our customers succeed.
• Our distribution system is a competitive advantage.
• Our supply chain is world class.
• Our business model drives superior results.
• Our people are talented and live Our Values in Action.
• Our work today helps our customers create a more sustainable world.
• Our financial performance consistently rewards our stockholders.
Most of their goals have already been accomplished. They have a wide range of over 300 machines for sale. They offer products for eight different industry and are well known worldwide for being number one in their industry. CAT even has product lines for boots and glasses. This is somewhat expanding their market within their industry needs.
What I would suggest for CAT is to:
• Maintain and expand their market worldwide
Caterpillar maintains 50 production facilities in the United States of America and 60 overseas, selling products to over 200 countries. Why not open more factories in other countries to provide work, reduce the over cost of products as there is no/small amount of shipping fee and is easier to access for some countries.
• Work on reducing prices
The company has always struggled with high pricing. As there are more competitors in the market now, their aim is to make the same high quality good for lower prices. They aim for this because it is the weak point of CAT Inc.
• Innovate more green technology
Today’s world is all about making the world a better place for the future. Being a environmental friendly company would only increase the assets of Caterpillar. This is also a way to plan for the long-run as the world is predicting non-renewable energy sources will soon be all used up. People will start turning to renewable sources for example solar power. These renewable power sources are environmental friendly. (Bbc.co.uk, 2015)
• Advertise more
Although cat is well known I personally only seen one advertisement for the organization. The reason most people know about CAT is by noticing its machinery in renovation sites. It the company advertises more it just most probably increase the sales.
• Campaigns
Campaigns for good causes would help with the little hesitation people have when it comes to CAT. Having a heart never hurt somebody.

Overall Caterpillar Inc. has been gaining manageable ground conceivable and driving positive change on every mainland for more than 90 years. Clients swing to Caterpillar to help them create foundation, vitality and regular asset resources. With 2014 deals and incomes of $55.184 billion, Caterpillar is the world's driving producer of development and mining gear, diesel and common gas motors, modern gas turbines and diesel-electric trains. The organization mainly works through its three item fragments - Development Commercial ventures, Asset Businesses and Vitality & Transportation - furthermore gives financing and related administrations through its Budgetary Items portion. (Caterpillar.com, 2015)
I believe there are no incidents so far as the company has been doing extremely well on growing its bottom line. It has increased its profit by 83% since 2010 and looks set to continue on this growth trajectory. CAT has also made considerable progress on the quality leadership front. According to our estimates, Caterpillar has increased its share of the global machinery market from under 34% to over 35% while it has increased the share of its engines and turbines market from 12.4% to almost 13%. It continues to maintain its standard of high quality products and has steadily been growing its aftermarket parts services. So, in total, we can say that the company is making very impressive progress on its strategic goals and looks on track to achieve its targets. (Trefis, 2015)

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Trefis, (2015). Caterpillar Looks on Track with Vision 2020 Strategy -- Trefis. [Online] Available at: http://www.trefis.com/stock/cat/articles/105132/caterpillars-vision-2020-is-it-on-track/2012-02-27 [Accessed 10 Jul. 2015].
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