MG-401
The company was founded in 1925 under the
name Caterpillar Tractor Co. and changed its name
to Caterpillar Inc. in 1986.
A Fortune 100
company, • Construction and Mining equipment
Caterpillar Inc., is • Diesel and Natural gas engines and
the world’s leading • Industrial gas turbines
manufacturer of
Merger by C.L. Best & Benjamin Holt
World’s largest manufacturer of heavy equipment
Markets include construction, mining, agriculture, forestry, and
many others
Recent acquisition of Bucyrus & Pyroban.
Competitors
Merger by C.L. Best & Benjamin Holt
C.L. Best Tractor Company and
Holt Manufacturing Company
merged in 1925 to form the
Caterpillar Tractor Company
which is now known as
Caterpillar Inc.
World’s Largest Manufacturer of Heavy Equipment
Markets include construction, mining,
agriculture, forestry, and many others
Caterpillar is the world’s leading
manufacturer of construction and
It is also a leading U.S. exporter
mining equipment, diesel and natural
gas engines, industrial gas turbines
and diesel-electric locomotives.
It serves customers in more than
The company also is a leading 180 countries around the globe
services provider through Cat with more than 300 products
Financial, Caterpillar
Remanufacturing Services, Caterpillar
Logistics Services, Inc. and Progress
Rail Services Corporation.
Recent acquisition of Bucyrus &
Pyroban
Bucyrus International Inc.
Surface and underground
mining equipment
Pyroban Group Ltd
Fire and explosion prevention
solutions for engines and
equipment
Competitors
Deere & Komatsu
Co. Ltd.
Joy CNH
Mining Global
CAT Logistics
• World-class supply chain
management CAT Financial
• Serves more than 60 • Provide customers with a means
global firms of financing equipment
purchases
• Insurance provided as well
Detailed later…
A world in which all people's basic requirements -
shelter, clean water, sanitation and reliable power
are fulfilled in a way that sustains our
environment.
The mission is to enable economic growth
through infrastructure and energy development,
and to provide solutions that protect people and
preserve the planet.
Anchor Coupling Prentice
AsiaTrak Progress Rail
Cat Pyroban
Cat Financial Shandong Engineering
Cat Reman Machinery Co. Ltd (SEM)
Cat Rental Store Solar Turbines
FG Wilson Turbomach
Halco Turner Powertrain
Hindustan Systems
Hypac Unit Rig
MaK
MWM
Olympian
Perkins
Consumer
Electric Government Forestry Merchandise
Investors
Power
Construction Locomotive
Marine Trucks Trades Mining Rail
Waste Pipe-laying Paving Oil & Gas OEM
The Cat brand is the company’s
primary public-facing brand name,
appearing on all of its equipment and
related services
Cat Financial provides retail and wholesale financing
solutions to Cat customers and dealers for the complete
line of Cat machinery and engines, Solar™ gas turbines,
other related equipment and marine vessels
Cat Logistics, now known as Neovia Logistics Services
is a leader in customer-centric, end-to-end value chain
solutions
Perkins is one of the leading suppliers of gas and diesel
engines with the capacity to produce up to 800,000 units
per year.
The largest single customer for these engines is no one but
Caterpillar itself, which comprises around 30% of sales
volume
There are few success factors which helped the company to achieve its
leadership position, some of them are:
Focus on Customer satisfaction
The integrated solutions provided by the company have proven to
provide the best returns to the customer
Employees Driven Organization
The company places great emphasis on its employees.
Work place safety is the part of the organizational culture.
Strong, Consistent Financial Growth
Solid financial performance has been a key in investors’ trust in CAT
management.
Strong Dealer Network
The company’s customers generally deal with people they know and
trust. Almost all dealerships are independent and locally owned.
Many have relationships with their customers that span at least two
generations.
6 Sigma
The adoption of the 6 Sigma project has saved millions of dollars for the
company over the years and continues to be a success.
Social Responsibility
Caterpillar's reputation for making a difference in the world is something
they are proud of as a company. In response to the Asian Tsunami disaster,
Caterpillar and its dealers provided machines, money and resources for
relief and recovery efforts
“You have to start with social media listening. It’s like
building a campus without the sidewalks. Let your
audience lay down the paths they want to take.”
-Kevin Espinosa
Social Media Manager, Caterpillar
Leveraging Social Media to meet Business Needs
Visits, Views, Followers,
Fans, Subscribers, Brands,
Exposure Mentions
Share of Voice,
Influence Sentiment, Top
Influencer’s Report
Clicks, Re-tweets, Shares,
Engagement
$$ Wall Posts, Comments
(Sales)
Content Downloads,
Action/ Webinar Attendees,
Convert Proposals/Pitches
HINDUSTAN
Recognized within India for over 30 years, the
Hindustan brand is found on wheel loaders and
off-highway trucks sold exclusively in India.
1988
Hindustan Motors Ltd. in joint venture with Caterpillar
Commercial, incorporated a new company at Tamil Nadu
named Hindustan Power Plus Ltd.
2001
Caterpillar acquired the brand Hindustan in India as it also
provides possibility of making the country a base for Caterpillar
exports to other countries in South Asia, South East Asia and
Africa. Renamed it as Caterpillar India private Ltd.
2006
Buyout of the joint venture formed in 1988.
Today
Together with their dealers, they employ more than 10,000 people in India
Also, Birla group’s GMMCO is the company’s largest dealer in India
Some of the key customers of Cat India are
ONGC
Indian Navy
ABG Shipyard
British Gas
Reliance Petroleum
Indian Railway
Be it the Golden Quadrilateral Project or the National Road Corridors, Cat
products and machinery are being deployed at every stage of road
construction
PORTER FIVE
FORCES MODEL
SWOT ANALYSIS
Global Market Leader Legal Proceedings
Strong Dealer Network Falling Sales in Europe,
Diversified Geographical Spread
Mix of businesses reduces
Africa and the Middle East
earnings volatility
Emerging Markets in the Environmental Regulations
BRIC countries Rise in raw material prices
Increasing Construction Currency Rates
activity due to growing Mining, highly dependent
upon coal prices and global
population GDP
Komatsu is a Japanese Multinational Corporation and the World’s second
largest manufacturer of construction and mining equipment.
Currently, it is the direct competitor to Caterpillar and has acquired major
market share in China and Japan
When Caterpillar entered the Japanese market, it started off with a joint
venture with Mitsubishi so as to be able to compete with Komatsu
Komatsu lacked an effective dealer network. Caterpillar’s global dealer
network provided a key competitive edge
The threat to Caterpillar from Komatsu is mostly attributed to the fact that
Komatsu has been the leader in technological innovations
STRATEGIES IN 1981 STRATEGIES IN 2012
• Recover the benefits • Delivering superior
lost due to strike in results – earnings per
1979. share growth,
operating profit after
Affective response to capital charge and
the changing and cash flow
emerging competitive • Developing the best
environment team of people
• Becoming the global
To support the leader everywhere
employees of they do business
caterpillar.
Increased emphasis on mining side of the business because of the fact that emerging
markets will require coal and other resources.
Expand their dealership facilities into the Asia and Middle Eastern market
Support customer relations through repair & maintenance scheduling
Develop relations with outside manufactures and designers
Launch rental and lease arrangements
Increase their production systems to reach the level of their competitors
Most of us data is from Caterpillar’s annual reports
Other sources:-
http://www.caterpillar.com/
http://india.cat.com/
http://www.cat.com/cda/layout?m=8703&x=7
https://www.facebook.com/caterpillar
http://finance.yahoo.com/q/ks?s=CAT
http://www.allbusiness.com/marketing-advertising/4290447-1.html
http://economictimes.indiatimes.com/hindustan-motors-
ltd/infocompanyhistory/companyid-13617.cms
http://www.gmmco.in/cat/about-us.asp
www.i2.com
www.datamonitor.com
Six Sigma is a set of tools and techniques/strategies for process
improvement originally developed by Motorola in 1981
Six Sigma seeks to improve the quality of process outputs by identifying
and removing the causes of defects (errors) and minimizing variability in
manufacturing and business processes
six sigma process is a process that produces 3.4 defective parts per
million opportunities (DPMO)
Six sigma methods:
DMAIC
1. Define the project goals, specifically
2. Measure key aspects of the current process
3. Analyse the data to seek out root cause of the defect
4. Improve the current process based upon data analysis
5. Control the future state process to ensure that any deviations from
target
DMADV
1. Define goals that are consistent with customer demands
2. Measure product capabilities, production process capability, and risks
3. Analyse to develop and design alternatives
4. Design an improved alternative
5. Verify the design, set up pilot runs & implement the production process
Worldwide demand has doubled- expanding markets globally
Intensity of competition increases Understand these markets needs
and wants better. (Competitive analysis)
Less developed countries are increasing their rates of construction
activity
New opportunities to target new customers
Financing problems with LDC
Construction in the U.S is decreasing-less U.S dominated and less
concentrated in the U.S
Advanced developing countries are entering the industry and
increasing competitive competition
World contractors are becoming better placed than U.S
contractors to perform contract
Foreign companies are more flexible and easier to form joint
ventures with
Free from constraints such as the FCPA
