Business Case Studies, Growth Strategies Case Study, Caterpillar Inc.: World’s Leading Earthmoving

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Case Title:

Caterpillar Inc: World's Leading Earthmoving Machinery Manufacturer's Growth Strategies

Publication Year : 2006

Authors: Priti Krishnan, Sumit Kumar Chaudhuri

Industry: Construction, Mining and Other Heavy Equipment Manufacturing

Region:USA

Case Code: GRS0084

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In 2005, Caterpillar set out its vision for 2010 – to become a $50 billion company. Deriving its business from industries that are cyclical in nature, Caterpillar adopted a strategy to generate profits during times of economic downturn. The company believes that the strength of its strategy lies in its remanufacturing division, which recycles old parts and engines and sells them to its clients at half the price of new ones.

Pedagogical Objectives:

  • To discuss the growth strategies of Caterpillar
  • To discuss whether the company could depend upon remanufacturing for realizing its vision in the face of visible signs of slowing down of the global economic growth rate.

Keywords : Six-Sigma; Critical success factors; Diversification; Product demand cycles; Low cost strategy; Growth Strategies Case Study; Vision; Global expansion strategies; Remanufacturing industry; Ford; Service marketing; Market stagnation

Contents : 
The World Leader in Heavy Equipment
Strategies to become a $ 50 billion Company
The Establishment of the Remanufacturing Division
Flow Chart Showing Process of Remanufacturing
Comparison Between Old Part and Remanufactured Part

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