Caterpillar remained the market leader in the 1980s through new machines and investments. While often waiting for new technologies to mature, Caterpillar diversified its business through new complementary companies. Management developed long-term strategies and made significant investments in facilities, training, and research to produce high-quality products and maintain technological leadership.

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.