Caterpillar aims to maintain its market share and profit margins in the bulldozer market while avoiding direct competition with Komatsu. It is considering setting the price of its new bulldozer at $80k, which would allow it to earn $50k in profit while still providing early adopter customers value with a $20k profit. This high price strategy would help Caterpillar retain brand loyalty through high quality and technology while creating barriers for Komatsu to enter the market.