Caterpillar
In Cat’s light equipment division they supplied equipment to farmers, landscapers, homebuilders, gardeners, road pavers, or just any one who had a need for a light machine for yard work. That was the beauty of the light equipment market there was always someone with need to use a machine.
Suppliers
Caterpillar produced a couple of there own parts but majority of their parts were outsourced. Caterpillar used the just in time process to construct machines giving them about four hours of work on the assembly line at a time.
New Entrants
It is very hard for a new company to break into the heavy equipment industry and take over the market. Caterpillar doesn’t have much to worry about in that aspect. All they have to worry about are the companies that are already in business. If there was to be a new comer in the market, it would probably come after Caterpillars light equipment market.
Conclusion
Caterpillar is a company that has been shaken a few times but still manages to keep its head above water. It has done so by reorganizing its weaknesses and not being afraid to change its ways of doing things. Cat has managed to stay consistent with what it has been doing for years, both internally and externally except for a few diversification moves. Its CEOs have came through the ranks of the company, so they know exactly what Cat’s intentions are and they try not to stray too far from those intentions. Cat realizes that there is competition out there and that the company can’t get too complacent with its actions. My colleagues and I feel that if Caterpillar keeps that same mind frame they will keep being productive for years to come.