Recommendations of Caterpillar Tractor Co. Case Solution

Home >> Hbr >> Caterpillar Tractor Co. >> Recommendations

Recommendations of Caterpillar Tractor Co. Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the company to expand in international markets with no decrease in its local incomes and any wear and tear of its market position. By thinking about Alternative 3, the company could keep its store experience and brand uniqueness. Nevertheless, it might also think about alternative 2 that could allow the company to access the markets without any potential financial investment. The company might pursue alternative 1 which would allow the business to focus on possible international markets rather than the regional markets however as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in company's earnings. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Caterpillar Tractor Co. Case Solution Stores

The company has a long term market position in US which can not be produced soon in the brand-new markets. The choice would help the business to broaden in international markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Increase in earnings from international markets.
• Removal of concerns connected to diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Caterpillar Tractor Co. Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture an extreme risk to the market share of company. In this scenario the company might think about presenting Click and Recommendations of Caterpillar Tractor Co. Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand Originality
• Removal of the fantastic shop experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company might consider, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of revenues of the company. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of new international markets.
• Boost in revenue from global markets.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.