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Caterpillar Inc.

759 Words4 Pages

The company I have chosen for my Midterm presentation is Caterpillar Inc. (Construction machinery Industry)
Caterpillar Inc. is an American Multi National corporation headquartered in Peoria, Illinois, United states. The company was formed in 1925 by Benjamin Holt and Daniel Best as a result of the merger of the C.L. Best Gas Tractor Company and the Holt Caterpillar Company as 'Caterpillar tractor company'. In 1986 the company restructured itself as Delaware corporation under the current name Caterpillar Inc. The company operates through three main business segments which are Construction Industry, Resource Industry, and Energy & Transportation. The company is also involved in Financial & Logistics services.
Construction Industry: The construction …show more content…

Caterpillar typically manufactured only a few mining equipments like wheel loaders, dozers and graders prior 2010. The acquisition of mining equipment manufacturing giant Bucyrus International Inc. in a 8.8 million deal in 2010 helped Caterpillar not only expand its product range (in mining equipments) but also move up the ranking in the Resource industry segment. The company's global competitors include Joy Global Inc.(27.2% market share), Komatsu Ltd.(14.7% market share), Hitachi construction machinery(9% market share), Volvo group(7.5% market share) etc. Caterpillar stands second in the league with a market share of about 22% as on FY …show more content…

The Asia pacific and the Middle east are the two markets which are growing extensively. China continues to be one among the top market for construction machinery. Caterpillar has a good customer base in North America and Europe, But limited population of its equipments in China and Middle east. The detailed Five force analysis of Caterpillar using Porter model has been described below:
Threat of new entrants: The potential threat from new entrants is relatively low. It requires a huge capital investment(fixed costs) to setup a construction machinery manufacturing facility. It is very important for the new entrant to be competent technically and price-wise. After sales service support and faster lead times are among key imperatives which the customer mainly looks in. Also the government regulations are quite stringent for the construction industry which makes difficult for the new entrant to step

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