Strategic Management Research Journal Part 2 2
Running head: STRATEGIC MANAGEMENT RESEARCH JOURNAL PART 2 1
Strategic Management Research Journal Part 2
Sierra Munoz
University of Phoenix
SWOT Analysis for Caterpillar’s Inc.
Strengths
Weakness
Great suppliers
Customers satisfaction
Large product and services portfolio
A strong brand image
Global dealer network
Focused innovation
Highly skilled personnel’s
Revenue declines
Dependent on the US market
Low amount of profits
Low rates of innovation
Limited business connections
Low diversification
High dependence on heavy equipment
Opportunities
Threats
Emerging economies
Technological innovation
Backward integration
Acquisitions
Manufacturing new and quality products
Online market
Availability of market for renewable energy.
Counterfeit products
Regulatory threats
COVID-19 pandemic
Aggressive competition
Escalating cost due to us/china trade tension
Poor industry outlook
Challenging economic conditions
Analysis for Caterpillar’s Inc. Strengths
In providing an analysis of the strengths of Caterpillar’s Inc., an individual is likely to realize that the company has large scale assets, a strong brand image, and a robust global distribution network (Pratap, 2021). As one of its strengths that has enabled it to have a competitive advantage in the world market. Some of the large products that the company makes are reciprocating engines, locomotive engines and also turbines which eventually play a significant role in industries that relate to construction, transportation and resources and energy. Additionally, the company has also established its brand image as the world-leading manufacturer of heavy equipment, which has positively impacted its growth globally. Thus, contributing to a situation whereby most of the company’s customers do not mind the higher costs charged by Caterpillar’s Inc. Because the products it produces are guaranteed to be superior in terms of quality and productivity.
Evaluation of the caterpillar’s Inc. weakness and threats for any common theme that might be at risk
After evaluating caterpillar’s Inc. weaknesses and threats, one will realize that the company stands high chances of losing its market, and this is because of the counterfeit products from other producers who tend to engage them in an imitative competition. Apart from that, it is also clear that the company also withstand losing its market because it has become slow when it comes to matters to do with innovation, even though innovation plays an essential role in improving the quality of products produced. For instance, Japanese companies have integrated robots to increase their competitive advantage on the market against Caterpillar’s Inc. (Pratap, 2021). These firms are managing that by simply copying the original design of the caterpillar’s Inc. products.
Comparison of Caterpillar’s Inc. weakness against its opportunities
When comparing some of the weaknesses and opportunities of caterpillars Inc., one will realize that the company’s opportunities on its SWOT analysis are a clear solution to the company weakness if the management brings that on board. For instance, revenue and profit declines can is something that will be easily solved if the company takes advantage of the emerging markets so that it can increase its sales. Additionally, the overdependence on the US market can be easily solved if the company takes advantage of the online markets that have emerged to market its products.
Problem-solving strategies that can address caterpillars Inc. Weakness and threats
For the company to address or solve some of the problems related to its Weakness and threats in the SWOT analysis. The company needs to develop an intensive strategy that gives it a substantive market penetration and development that enables it to be aware of various market characteristics (Pratap, 2021). Secondly, caterpillars Inc. will also use diversification that will allow it to realize some of the challenging economic issues
Reference
Pratap, A. (2021). Caterpillar SWOT Analysis. Retrieved 15 August 2021, from https://notesmatic.com/caterpillar-swot-analysis/
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