1. • New machines and investment kept Caterpillar
market leader during 80s.
• Often Caterpillar preferred to wait till complete
dependable technology caught up with
innovation design.
• Caterpillar further diversified by starting a
number of companies which complement the
company's core businesses.
• Caterpillar managers developed long term
business strategies to achieve success.

2. • New machines and investment kept Caterpillar
All resources for Caterpillar products use Cat
market leader during 80s.
technology
• Often Caterpillar preferred to wait till complete
• By using external venture more broader,
dependable technology caught up with
innovation design.
diversified and cost effective product line.
• Caterpillar further diversified by starting a
• Management penetration effected on dollar
number of companies which complement the
company's core businesses.
value
• Caterpillar managers developed long term
business strategies to achieve success.

3. • Producing 300for Caterpillar products use with
• All resources models in 1990s compare Cat
technology in 1970s
33 models
• In all economy condition never decreased
• By using external ventureand research
expenditure of engineering more broader,
diversified and cost effective product line.
activities
• Signing agreement with best manufacturer
• Management penetration effected linedollar
across the world to develop product on
value
• Management policy to innovate new
machines and redesign existed products.

4. • $2billion investment to boost quality and
lower cost just in seven years.
• High
tech plant and modernization of
manufacturing technology for unique quality
productions.
• Purchasing best product technology if other
had.
• Increasing commitment to the education and
training to maintain a work force capable of
producing high quality, high technology
products

5. Internal
• Alwas innovation idea an new machine come from Cat
• Often Caterpillar preferred to wait till complete dependable
technology caught up with innovation design or sometimes
other priorities intervened
• Revolutionary machine designs keep Cat at technology's edge
• New machines and investment kept Caterpillar market leader
during 70s.

6. External
• Allied Equipment Manufacturers were resources for Cat by 1944
• Caterpillar was voice of U.S. market to pressed the government to find
solution for exchange issue
• contract with other manufacturers to build products which could be sold
and serviced by the dealers organization. This goal was more broader,
diversified and cost effective product line.
• Caterpillar in external technology also is leader because all resource that
Cat use their product also has Caterpillar technology for production
• This joint venture produces and sells Caterpillar designed engines for a
wide range of applications
• it was a technical license agreement for manufacture power shift
transmission which sold to Chinese construction equipment
manufactories.

7. Product Development
• the company was producing 70 models of machines in 12
product groups but there were only 33 Caterpillar models in
only seven product groups just 10 years before.
• Company tried to reduce costs of products but it didn’t mean
that company cut or reduce important cost such as
engineering and research activities.
• 1970s 33, 1980s 150, 1990s 300
• Caterpillar product line has diversified dramatically during
lifetime to provide variety of customers need.

8. Process Development
• $2 billion investment in flexible manufacturing technologies designed to
boost quality and lower cost
• Innovating and producing machines was not just Caterpillar tasking also
this company invested huge capital to developing and redesigning existed
products.
• also investment for modernization of plant started during 1985 to 90s so
this plan helped company to reduce costs and improve quality.
• Capital investment for the seven year period 1987 through 1993 was
around $2 billion, the plants were now the most modern in the industry.
• Also one of the important actions was increasing commitment to the
education and training to maintain a work force capable of producing high
quality, high technology products that meet customer needs.