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Strategic Management Research Journal Part II

Strategic Management Research Journal Part II

SWOT Analysis

Caterpillar’s Strengths

Caterpillar Inc. deals with designing, developing, engineering, manufacturing, marketing, selling engines, machinery, and financial products. The company deals with selling its products to its clients through a worldwide dealer network. Thus, the company benefits from recent technological advancements and actualizing technology to reach a global audience. Secondly, Caterpillar Inc., the company has a great brand image as outlined by its 62nd rank in the Fortune 500 companies (Caterpillar: 2020 Fortune 500, 2020). The company has a strong reputation, while its global position makes it easier to succeed in the contemporary world.

Weaknesses and Threats

The contemporary world is continually changing, and thus, necessitates numerous businesses to keep up with these changes. Caterpillar is a global community for starters and hence requires the firm to find ways to improve efficiency in the worldwide market. The company encounters some shortcomings due to a lack of skilled workforce in some areas. Also, new regulations, such as regulations under the Paris Agreement of 2016, threatens specific existing commodity categories. The government accommodates numerous government regulatory mechanisms such as the Power Purchase Agreement and Independent Power Producers-IPPs Mechanisms (Zharan and Bongaerts, 2017). Thus, the enactment of regulatory measures regulates the activities, thereby limiting the effective attainment of institutional goals.

Conversely, the company exists in a continually growing world. Therefore, it encounters numerous competitors, some of which provide products at lower prices. Caterpillar faces competition from other major companies such as Aggreko, Scania, and Doosan Infracore. The prevalence of games may limit the capacity of the firm to remain at the top. Caterpillar Inc. has to come up with new marketing incentives continually. Failure to come up with effective marketing strategies may stimulate some limitations.

Comparison of Caterpillar’s Weaknesses against its Opportunities

The company faces some challenges, such as gaps in the product range sold by the company. However, the company has a robust global presence and can actualize this opportunity to understand and resolve the existing gaps. For instance, the company can research existing gaps and come up with imperative ways to close these girls and improve the company’s efficiency.

Conversely, the company can overcome marketing challenges by actualizing technological advancements. The contemporary world is continually evolving, while Caterpillar Inc. continues to have numerous branches globally. Therefore, the company can improve its marketing strategies by actualizing technology. The outlined feat may entail using different online platforms, such as social media, to reach the global community. The firm can also benefit from technological advancements by finding new ways to get its customers and receive feedback on different issues.

Problem-Solving Strategies

Caterpillar can actualize technological advancements to overcome some of the weaknesses outlined. For instance, the lack of flexibility in structure can be a significant shortcoming. Thus, the company can find effective ways to ensure flexibility in the system. Also, the company can improve its marketing strategies by actualizing technological advancements to reach a global company. Lastly, the firm can continually produce quality products and ensure it adheres to the customers’ expectations. The company encounters some shortcomings due to the prevalent competition. Thus, the company should research the market and understand the target clients. The firm can further come up with services and products that align with the needs of the customers.


Caterpillar: 2020, Fortune 500. (2020, August 10).

Zharan, K., & Bongaerts, J. C. (2017). Decision-making on the integration of renewable energy in the mining industry: A case studies analysis, a cost analysis, and a SWOT analysis. Journal of Sustainable Mining, 16(4), 162–170.

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