Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Abstract
In 2005, Caterpillar set out its vision for 2010, to become a $50 billion company. Deriving its business from industries that are cyclical in nature, Caterpillar adopted a strategy to generate profits during times of economic downturn. The company believes that the strength of its strategy lies in its remanufacturing division, which recycles old parts and engines and sells them to its clients at half the price of new ones. This case, while highlighting Caterpillar''s growth ambitions, offers scope to discuss whether the company could depend upon remanufacturing for realising its vision, in the face of visible signs of slowing down of the global economic growth rate.
Location:
Other setting(s):
December 2005
About
Abstract
In 2005, Caterpillar set out its vision for 2010, to become a $50 billion company. Deriving its business from industries that are cyclical in nature, Caterpillar adopted a strategy to generate profits during times of economic downturn. The company believes that the strength of its strategy lies in its remanufacturing division, which recycles old parts and engines and sells them to its clients at half the price of new ones. This case, while highlighting Caterpillar''s growth ambitions, offers scope to discuss whether the company could depend upon remanufacturing for realising its vision, in the face of visible signs of slowing down of the global economic growth rate.
Settings
Location:
Other setting(s):
December 2005