Question:What's Caterpillar's future? What should it do next with its product line? Where is the future growth for this company? Marketing ExcellenceCaterpillar was founded in 1925 when two California-based tractor companies merged. The name "Caterpillar,"however, dates back to the early 1900s when BenjaminHolt, one of the company's founders, designed a tractorcrawler with wide, thick tracks instead of wheels. Thesetracks prevented the machine from sinking into California'sdeep, rich soil, which was impassable when wet. The newfarm tractor crept along the farmland in such a way thatone observer said it "crawled like a caterpillar."Holt sold the tractor under the Caterpillar brand, andonce the merger occurred, the newly formed companybecame Caterpillar Tractor Company. Since then, CaterpillarInc., or CAT, has grown into the largest manufacturer ofearth-moving equipment and engines in the world. With over300 different machines for sale, Caterpillar offers productsolutions for eight industries: residential, nonresidential, in-dustrial, infrastructure, mining and quarrying, energy, waste,and forestry. Its distinctive yellow machines are found allover the globe and have helped make the brand a U.S. icon.CaterpillarSETTING PRODUCT STRATEGYCHAPTER 12351So how did a small tractor company grow to become Low-End. Caterpillar is focused on innovating high-techone of the biggest companies in the world? The company machinery for the growing World Class segment and leav-grew steadily at first, hitting a few critical milestones in- ing the Low-End segment to local competitors that willcluding the use of Caterpillar's trademark farm treads onArmy tanks in WWI and WWII. Huge postwar constructionand strong overseas demand kept sales strong through ket is its business model. Caterpillar sells it all: machines,the mid-21st century, as did innovations like the diesel services, and support for a wide range of industries. Fifty-tractor and rubber-tired tractors.eventually be consolidated.Another reason for Caterpillar's dominance in the mar-three percent of its sales come from products and the restfrom integrated services. Caterpillar accomplishes this featThings changed, however, when the recession of theearly 1980s hit Caterpillar hard and international competi- through its extensive Global Dealer Network-speciallytors gained market share, including Japan's Komatsu.Caterpillar's high prices and inflexible bureaucracy nearlysent the company into bankruptcy. In 1982 alone, thefirm lost $6.5 billion, laid off thousands of employees, Caterpillar's business comes from overseas, making it oneclosed several factories, and suffered a long United AutoWorkers strike.trained independent CAT dealers who can provide serviceson a local basis, giving the global company a personal feel.Feeling local is important considering that 56 percent ofof the United States' biggest exporters. Caterpillar has beena leader in building roads, bridges, highways, and airportsall over the world. In developing cities like Antamin, Peru, forexample, which is abundant in copper, large mining compa-In the 1990s, Caterpillar recognized that it desperatelyneeded to change, and under new leadership it success-fully pulled off one of the biggest turnarounds in corporate nies spend hundreds of millions of dollars on CAT machin-history. Several factors played a role.ery and services each year. Up to 50 different kinds of CATCaterpillar boldly fought the United Auto Workers bulldozers, front loaders, excavators, and special miningand outlasted two strikes and seven years of dis-agreements.It decentralized and restructured into several busi-ness units, each responsible for its own P&L.It invested a significant amount of money (ultimately Komatsu remains a distant number two, with less than$1.8 billion) in a factory-modernizing program that auto-mated and streamlined its manufacturing process with acombination of just-in-time inventory and flexible manu-facturing. By automating its manufacturing system, thecompany became more efficient and competitive, al-though it also was forced to lay off more of its workforce.It made research and development one of its biggest nologies, maintaining its strong brand, and investing in thepriorities, investing hundreds of millions of dollars innew technologies, products, and machines. As a re-sult, CAT construction trucks became more high- cessful in emerging markets.tech, competitive, and environmentally friendly.Today, Caterpillar ranks number one or number two inevery industry it serves. Its products are unmatched inquality and reliability and the company has maintained itsstrong focus on innovation. With a $2 billion annual re-search and development budget, new products arelaunched every year. Recent innovations include hybriddiesel-electric tractors-the first of their kind-and lower-trucks help clear roads, clean up spills, and dig for copper.These massive trucks are all manufactured in Decatur,Illinois, shipped in pieces, and assembled at the job site.Caterpillar's sales hit $51 billion in 2008 and droppedto $32 billion in 2009 due to the recession. Japan'shalf the sales of Caterpillar. Caterpillar maintains 50 pro-duction facilities in the United States and 60 overseas,selling products in over 200 countries.What's next for Caterpillar? As the company movesforward, it remains focused on reducing greenhouse gasemissions in its machinery, innovating more green tech-future of emerging countries like India and China. Thecompany believes that in order to grow, it must be suc-emission engines with ACERT technology, a clean-dieseltechnology that also improves fuel efficiency.Caterpillar's product range is immense. From a small47 horsepower skid steer to an 850 horsepower tractor toa massive 3,370 horsepower mining truck, the firm devel-ops products that serve each market and region's specificneeds. In China, for example, a critical market to thefuture of Caterpillar, the company has divided its productstrategy into three segments: World Class, Mid-Tier, and

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Question:What's Caterpillar's future? What should it do next with its product line? Where is the future growth for this company? Marketing ExcellenceCaterpillar was founded in 1925 when two California-based tractor companies merged. The name &#34;Caterpillar,&#34;however, dates back to the early 1900s when BenjaminHolt, one of the company's founders, designed a tractorcrawler with wide, thick tracks instead of wheels. Thesetracks prevented the machine from sinking into California'sdeep, rich soil, which was impassable when wet. The newfarm tractor crept along the farmland in such a way thatone observer said it &#34;crawled like a caterpillar.&#34;Holt sold the tractor under the Caterpillar brand, andonce the merger occurred, the newly formed companybecame Caterpillar Tractor Company. Since then, CaterpillarInc., or CAT, has grown into the largest manufacturer ofearth-moving equipment and engines in the world. With over300 different machines for sale, Caterpillar offers productsolutions for eight industries: residential, nonresidential, in-dustrial, infrastructure, mining and quarrying, energy, waste,and forestry. Its distinctive yellow machines are found allover the globe and have helped make the brand a U.S. icon.>>CaterpillarSETTING PRODUCT STRATEGYCHAPTER 12351So how did a small tractor company grow to become Low-End. Caterpillar is focused on innovating high-techone of the biggest companies in the world? The company machinery for the growing World Class segment and leav-grew steadily at first, hitting a few critical milestones in- ing the Low-End segment to local competitors that willcluding the use of Caterpillar's trademark farm treads onArmy tanks in WWI and WWII. Huge postwar constructionand strong overseas demand kept sales strong through ket is its business model. Caterpillar sells it all: machines,the mid-21st century, as did innovations like the diesel services, and support for a wide range of industries. Fifty-tractor and rubber-tired tractors.eventually be consolidated.Another reason for Caterpillar's dominance in the mar-three percent of its sales come from products and the restfrom integrated services. Caterpillar accomplishes this featThings changed, however, when the recession of theearly 1980s hit Caterpillar hard and international competi- through its extensive Global Dealer Network-speciallytors gained market share, including Japan's Komatsu.Caterpillar's high prices and inflexible bureaucracy nearlysent the company into bankruptcy. In 1982 alone, thefirm lost $6.5 billion, laid off thousands of employees, Caterpillar's business comes from overseas, making it oneclosed several factories, and suffered a long United AutoWorkers strike.trained independent CAT dealers who can provide serviceson a local basis, giving the global company a personal feel.Feeling local is important considering that 56 percent ofof the United States' biggest exporters. Caterpillar has beena leader in building roads, bridges, highways, and airportsall over the world. In developing cities like Antamin, Peru, forexample, which is abundant in copper, large mining compa-In the 1990s, Caterpillar recognized that it desperatelyneeded to change, and under new leadership it success-fully pulled off one of the biggest turnarounds in corporate nies spend hundreds of millions of dollars on CAT machin-history. Several factors played a role.ery and services each year. Up to 50 different kinds of CATCaterpillar boldly fought the United Auto Workers bulldozers, front loaders, excavators, and special miningand outlasted two strikes and seven years of dis-agreements.It decentralized and restructured into several busi-ness units, each responsible for its own P&L.It invested a significant amount of money (ultimately Komatsu remains a distant number two, with less than$1.8 billion) in a factory-modernizing program that auto-mated and streamlined its manufacturing process with acombination of just-in-time inventory and flexible manu-facturing. By automating its manufacturing system, thecompany became more efficient and competitive, al-though it also was forced to lay off more of its workforce.It made research and development one of its biggest nologies, maintaining its strong brand, and investing in thepriorities, investing hundreds of millions of dollars innew technologies, products, and machines. As a re-sult, CAT construction trucks became more high- cessful in emerging markets.tech, competitive, and environmentally friendly.Today, Caterpillar ranks number one or number two inevery industry it serves. Its products are unmatched inquality and reliability and the company has maintained itsstrong focus on innovation. With a $2 billion annual re-search and development budget, new products arelaunched every year. Recent innovations include hybriddiesel-electric tractors-the first of their kind-and lower-trucks help clear roads, clean up spills, and dig for copper.These massive trucks are all manufactured in Decatur,Illinois, shipped in pieces, and assembled at the job site.Caterpillar's sales hit $51 billion in 2008 and droppedto $32 billion in 2009 due to the recession. Japan'shalf the sales of Caterpillar. Caterpillar maintains 50 pro-duction facilities in the United States and 60 overseas,selling products in over 200 countries.What's next for Caterpillar? As the company movesforward, it remains focused on reducing greenhouse gasemissions in its machinery, innovating more green tech-future of emerging countries like India and China. Thecompany believes that in order to grow, it must be suc-emission engines with ACERT technology, a clean-dieseltechnology that also improves fuel efficiency.Caterpillar's product range is immense. From a small47 horsepower skid steer to an 850 horsepower tractor toa massive 3,370 horsepower mining truck, the firm devel-ops products that serve each market and region's specificneeds. In China, for example, a critical market to thefuture of Caterpillar, the company has divided its productstrategy into three segments: World Class, Mid-Tier, and

Accepted Answer

As the company will keep moving forward, Caterpillar will remain it’s focus on reducing greenhouse…

Question: What's Caterpillar's future? What should it do next with its product line? Where is the future growth for this company?