Caterpillar is a global leader in construction and mining equipment. It has a large portfolio of products and services and a broad global customer base served by over 99,000 employees. While it faces competition from companies like Komatsu and Volvo, Caterpillar has strengths in its brand, R&D capabilities, and global dealer network. It aims to continue innovating solutions that enhance customer productivity and value.

1. Caterpillar
Presented To:
Prof. Dr. Rehaaf Foula
Prepared By: Abdel Rahman Salah 20122088

2. Company profile:
Caterpillar Inc. [NYSE: CAT] is a global leader in the design, manufacture, and commercialization of
construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric
locomotives.
The Company also offers financial services through The CAT Financial Brand. With an extensive product range
that caters to a large customer base, it has a broad clientele served by about 99,100 employees spread across
the world.
Caterpillar offers a wide range of equipment, with approximately 20 products in its portfolio that helped the
firm achieve worldwide stature, including position #78 on the fortune 500 list in 2020

3. Competitors:
Volvo CE (Sweden)
XCMG (China)
Komatsu Limited
(JAPAN)
Volvo CE, headquartered in Gothenburg,
Gothenburg, Sweden, is one of the
world’s largest heavy equipment and
trucks manufacturers. Founded in 1832
It has about 14,000 employees
distributed across over 200 offices and
dealerships in over globally
XCMG is a Chinese state-owned
company. It operates as both a heavy
machinery manufacturer and service
provider.
The Company is listed on the Shanghai
Stock Exchange and has a market value
equity of 53.034 billion Chinese Yen
($8.204 billion) as of September 22,
2021.
Komatsu Ltd (TYO: 6301) is a Japanese
company that manufactures
construction, mining, and on-highway
engines. It also manufactures military
and diesel engines alongside industrial
machinery.
The Company is listed on the Tokyo
Stock Exchange, where it has a market
value equity of $23.744 billion as of
September 22, 2021, and boasts 62,823
employees.

4. Business Model 5 Cascading Questions:
1) What is Caterpillar winning aspiration?
The firm aims at being a global leader in the industry through high quality products that satisfy customers. The
company also effectively develops its business value through marketing and its distribution network around the world.
Thus, the corporation follows this vision statement and continues to improve customer value

5. Business Model 5 Cascading Questions:
2) Where will play?
- Customers : Oil & Gas industry, Agricultural production industry, Auto & truck manufacturers industry
- Channels : Having 178 dealers distributed worldwide
- Product & Service : the design, manufacture, and commercialization of construction and mining
equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
- Geography : World-Wide

6. Business Model 5 Cascading Questions:
3) How will Caterpillar win in chosen market ?
- Caterpillar’s competitive advantages include its strong dealer distribution network; its significant
investment in research and development which resulted in its high potential in digitization and
automation; its massive scale and volume which is denoted by its presence in many countries in the world;
and its reputation for high quality and safety

7. Business Model 5 Cascading Questions:
4) What Capabilities must Caterpillar have ?
- They have Extensive product portfolio , Strong brand image ,
Superior R&D capabilities & Strong dealer network
- They need focusing on solutions that enhance customers’ productivity and its unprecedented
commitment to creating strong global brands result in exceptional growth and profitability.
- To invests in research and development (R&D) to ensure that it offers quality solutions
- To invests in areas that create value through the Operating and Execution model

8. Business Model 5 Cascading Questions:
5) What management system do Caterpillar need ?
- Need Innovation management & Artificial intelligence
- Caterpillar can see its management success reflected on the revenues by $41.7 billion in 2020, with
an operating profit margin of 10.9 percent. Also Despite the downturns caused by the Covid-19 pandemic
in 2020, the firm still maintained its leadership position in the global construction equipment
manufacturers segment with a market share of 13 percent

9. What Strategy does Caterpillar apply ?
The vision of the company is clear, becoming a leader in most heavy duty markets on a worldwide scale.
Their goals and objectives were clear as well. They want to compete and become a cost leader in their
field; they want to reach a large number of markets, new customers, image of quality and service.
Whatever the goals they might have had, they did manage to attack them properly
Growth : They managed to enter most new markets quickly while keeping and reinforcing their
relationship with customers as they started to perceive better quality of service. The lowering of their
prices also allowed them to attract new customers and markets. They also catered to customers’
needs by innovating new products; entering more retail markets… their growth strategy is clear.

10. Competitive advantage
:
Cost – They managed to cut their cost and
implement a fully automated production line and
just in type inventory which strongly reduced the
production cost and therefore their sales price.
Quality – They focused on quality of service and
products.
Value: All their products are customizable and
therefore a strong focus on customer need was built
which brought more value to the customer
Value - All their products are customizable and
therefore a strong focus on customer need was built
which brought more value to the customer

11. Caterpillar SWOT Analysis
Strengths
Extensive product portfolio: Caterpillar is a company that provides solutions for various industries, from construction
to mining. Its portfolio entails more than 20 products that cater to a vast market, including heavy equipment and
engines. The Company also extends its services by providing financial solutions to customers, offering competitive
warranties and flexible financing options to boost customer productivity.
Strong brand image: Caterpillar is a brand name that resonates with most people, especially in the construction
industry. The Company established this positive image through authenticity and continuous innovation. Companies all
over the world use Caterpillar products, thus boosting the firm’s international recognition. This fosters a sense of trust
and respect from consumers, making the brand a leader in its industry.
Superior R&D capabilities: Caterpillar possesses the resources, knowledge, and technologies to create market-
leading products. It commits to partnering with leading global companies, institutions, and governments to develop
products that address the most pressing industry issues. The result is innovative solutions that meet customer needs
and expectations, including improving environmental sustainability.
Strong dealer network: Caterpillar has a vast dealer network that supports its business by engaging with customers,
building solutions, and resolving issues. The Company boasts 178 dealers distributed worldwide, which increases its
reach and enhances its brand visibility. Caterpillar’s global presence and its capabilities to provide reliable and high-
quality products foster customer loyalty

12. Caterpillar SWOT Analysis
Weaknesses
Weakening Financials : Caterpillar is experiencing a decline in its revenue and profits per share despite being a leader
in the industry. From its 2020 annual report, the Company recorded a sales revenue decline of 22 percent due to
reduced sales volume primarily driven by low demand. However, this could be because of the Covid-19 pandemic that
disrupted the entire world economy. Its profits per share over the same period decreased from $10.75 in 2019 to $5.46
in 2020
Dependence on the North American market : With worldwide brand recognition, Caterpillar still depends on the
North American market for a significant amount of its sales revenue. If the 2020 annual reports are anything to go by,
more than 40 percent of Caterpillar’s revenue comes from the US and Canada. The Company can benefit from
expanding its market presence in emerging markets like Africa and India to mitigate the effects of any economic
turbulence

13. Caterpillar SWOT Analysis
Opportunities
Emerging markets: Caterpillar’s future lies in emerging markets, especially Africa and Asia. The vast majority of the
population resides in these regions, which possess abundant natural resources, including oil and metals. As a result,
demand for mining equipment is expected to increase significantly. Serving this market with products that cater to its
needs can give Caterpillar a much larger share in this industry.
Rising environmental awareness: The Company’s service strategy is to improve customer efficiency, competitiveness,
and productivity. Caterpillar can tap into its existing capabilities to address the threats posed by climate change which
are driving today’s consumers to take measures that reduce their carbon footprint. For example, the demand for
electric and hybrid vehicles has increased significantly because of campaigns to reduce carbon emissions. Caterpillar
can use its strengths in technology to develop products that address this demand.

14. Caterpillar SWOT Analysis
Threats
Competition: Caterpillar faces intense competition from companies capable of providing customers with similar
products. For example, it competes against Komatsu, a well-known Japanese company, for its leading mining
equipment. Other competitors include Hitachi Zosen Corporation, XCMG, and SANY.
Economic downturns: The recent Pandemic crisis caused severe damage to the world economy, which could indicate
another economic downturn. Catalysts for this are oil prices, unreliable currencies, and political instability in many parts
of the world. If another financial crisis strikes, Caterpillar has to ensure that it has a continuation plan in place to save
itself from any dire consequences