Role: New Higher at Caterpillar Tractor Co.
Question: Morgan asks you: What Cat’s Sustainable Distinguishable Competitive Edge is? Answer: Our Sustainable Distinguishable Competitive edge is our chain of distribution, which through our large geographic base allows us to be independent of any domestic business cycle. Centered Argument:
Through keen managerial strategy our company was able to establish business overseas before our competitors. Pioneering the overseas market allowed us to be able to get our product to as many dealers internationally faster than our competitors. This has allowed us to establish an international reputation which is a main point of emphasis when companies purchases new machinery. Supporting Case Observations:
* Survey conducted in late 1970’s indicated that manufacture reputation, machine performance, and dealer capability were the most important criteria when making a purchase (p.3, ¶4) * Our company is dedicated to manufacturing excellence. (p.8, ¶7) * In a long term strategic view of the Caterpillar company management decided the strength of the company was high quality products backed by effective service. (p.7, ¶6) * Management believed it was better to sacrifice profit margins than risk losing customers due to poor service or lack of product quality. (p.9 ¶2) * Our executives have put emphasis on our worldwide performance. (p.11, ¶2) * Our management moved from agriculture equipment to EME industry with the construction of highways, which lead to a large demand for earth moving equipment (p.7, ¶5) * Beginning of World War II lead to boom in EME demand, and Caterpillar was made standard for military bulldozers. (p.7, ¶5) * Machinery left over from the war laid ground work for expansion into foreign market because locals became familiar with Caterpillar machinery. (p.7, ¶5) * Management took a long term strategic analysis of company and decided to expand into foreign markets given the existing...
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