Caterpillar on a Global Scale Essay
Low revenue growth prompted Caterpillar to compete on a global scale In order to keep increasing revenue the company had to look for new customers and since ninety-five percent of the world’s potential customers live outside the United States, competing on a global scale was essential. Caterpillar created regional councils in Europe, Africa, the Middle East and Asia Pacific.
The business driver for Caterpillar is a Lean Six Sigma. The company developed a strategic vision and a road map for change guided by fact-based analysis. The initiative led to product …show more content…
The company then augmented the centralized production with assembly plants in each of its major markets—Europe, Japan, Brazil, Australia, and so on. At these plants Cat added local product features, avoiding the high transportation cost of end products. Most important, Cat became a direct participant in local economies. The company achieved lower costs without sacrificing local product flexibility
Innovation is the key to Caterpillar’s success, the company produced energy-related products and services for a quarter of the business and is able to provide solutions throughout the energy value chain. Caterpillar also found innovative approaches like conversion of waste gases such as landfill methane into useful energy. Most recently they introduced a hybrid excavator which could achieve about a 25-50 percent fuel efficiency and emissions-reduction gain.
The greatest business challenge to Caterpillar has come from Komatsu Japan’s leading construction