He shared his pragmatic and highly focused perspective with me on how he developed strategy, succession, and culture at the board level during his tenure. Prevent all injuries and further its industry-leading safety results by reducing recordable injury frequency (RIF) by 50% from 2018 to 2030. And because there is no guarantee that the business can become global, the company must be willing to risk the heavy investment that global competition requires. The company also offers services, such as financing and insurance, as well as maintenance and training services. Caterpillar is a very traditional company and its migration to the digital era is far from easy or straightforward. However, it never managed to establish itself as a market leader due to manufacturing problems that were slowly costing the company its market share. Exhibit IV Honda Motor Companys financial policy from 1954 to 1980. djunct professor at The Fletcher School of Tufts University and at Middlebury Institute of International Studies at Monterey, and former partner at The Boston Consulting Group. The Caterpillar Production System (CPS) is the primary enabler of the company's plan to execute the updated strategy. Caterpillar is increasingly confident in our ability to achieve our commitment to reach $28 billion in ME&T services sales1by 2026. The business can exploit the construction boom in these markets. Cat Command, for example, allows machines to be run autonomously from thousands of miles away. No Western market exceeded 100,000 units; wide product lines and small volumes meant slight opportunities for economies of scale. In heavy equipment manufacturing, there are significant competitors from countries like Japan and the Netherlands. Market penetration is the main intensive growth strategy of Caterpillar Inc. The term global leader is ambitious enough to push the firm to improve. In addition, acquisition increases the product range of the company. Cat product offerings include articulated trucks, backhoe loaders, dozers, engines, excavators, generators, motor graders, skid steer loaders and wheel loaders. A., Tardiff, V., & Tayur, S. R. (2014). By taking unconventional action, such as lowering prices of an important product or in key markets, the company makes the competitors response more expensive and difficult. Its most important function, though, is that it provides invaluable knowledge on asset values, industry trends, financing structures, and customer needs rendering the company extremely sensitive to emerging opportunities and threats.. It focused on two key pillars: Manufacturing farming machines at the time was expensive, involved a lot of trial and error and the production time was long. Caterpillar can also improve its financial performance by growing its distribution network.