CATERPILLAR VS. KOMATSU

1917-1921: Takeuchi Mining Industry, founded in 1894, established

Komatsu Iron Works to manufacture machine tools for in-house use. By the end of 1921, Komatsu, Ltd. was established.

1924: Komatsu built Asia’s first mass press, a 450-ton sheet

forming press.

1931: Japan’s first crawler tractor was produced.

1941-1954: Komatsu innovated and produced different products at

a massive rate, including hydraulic presses, large-press assembly, D50 bulldozer, diesel engine, motor graders, forklift trucks, dump trucks, special service vehicles, and shell-mold precision castings.

1961: Signed a technology license tie-up with Bucyrus of the US.

1966: Komatsu’s Tokyo Head Office was built, the Komatsu

Building.

1967-1979: Established its first overseas subsidiary in Belgium,

and further establishments of “Komatsu” in the United States, Singapore, Mexico, Australia, United Kingdom, Germany, and Indonesia.

1980-1992: Komatsu saturated the European market with launch

wheeled excavators, hydraulic equipment, laser machines, wheel loaders, and combination press line.

1990’s: From the late 1970, through the 80’s and 90’s, Komatsu

invested in global expansion, dipping its hands into many markets striving for an international brand having been on every continent, slowly but surely.

2006: Komatsu celebrated its 50th marked anniversary of

participation in the Chinese market.

2013: The world was introduced to its first automatic blade control

system, and Komatsu wins the Deming Prize.

CATERPILLAR VS. KOMATSU

Bianca LeLuyer & Rachel D'Angelo

November 6, 2014

Global Marketing

Bianca LeLuyer & Rachel D'Angelo

November 6, 2014

Global Marketing

Komatsu

Caterpillar

Future

Komatsu

Future

Caterpillar

From the beginning, Komatsu, Ltd. has proved its strength and sustainability as a manufacturing company. The future of Komatsu will be more heavily focused on development of after-sales service operations, hiring intense technicians to constantly keep up to par with its competitors. It is absolutely certain that Komatsu's plans for expanding into new areas of the market will be nothing short of successful. Komatsu's more globally expansive approach, targeting all areas of the manufacturing market, will be just as affluent as the past sixty years.

As a company, they want to be globally recognized as leaders, manufacturing products and services triggering success. Caterpillar also wants to have a world-class supply clain, helping customers create a more sustainable world, continent by continent. Lastly, they are striving for their financial performance to consistently reward its stockholders.

Evolution

Caterpillar, Inc. has been making motion sustainable on every continent for over 85 years.

Komatsu

Caterpillar

SWOT Analysis

WEAKNESSES

STRENGTHS

WEAKNESSES

• Europe generates 25% of Caterpillar's revenues, so the current European economic crisis is a major concern.
• Sales in Africa and the Middle East have been falling.
• The housing market in the United States has been suffering, also having an affect on the company's finances.

• Superior Channel network throughout the world.
• Top notch Dealer service on all continents.
• Strong product portfolio to meet all applications.
• Acquired three companies total, Bucyrus, EMD, and MWM, adding to the company's top line.
• Has an employee base of over 150,000.

• Komatsu's competitors are very strong, which limits its scope for market share growth.
• Nationalization of mining activities in many countries.

• Komatsu can confidently say that they have an extremely wide range of products for every single construction and mining equipment need.
• It's geographical location can be used to its advantage, because it is present first hand in many developing countries.
• Heavily differentiated into logistics, electronics, solution-based operations, and industrial vehicles and machines.
• Komatsu has a workforce of nearly 40,000.
• It has manufacturing operations in Japan, the United States, different parts of Asia and Europe.

THREATS

OPPORTUNITIES

THREATS

OPPORTUNITIES

1885: Daniel Best of California produces his first combine.

1904: Benjamin Holt produces his first successful caterpillar-style

tractor crawler.

1909: Caterpillar established a manufacturing operation in Peoria.

1910: Best’s son, C.L. Best, forms his own tractor company, Best

Gas Tractor, Co.

1925: Holt and Best join companies to officially brand Caterpillar.

1929: The Soviet Union purchased 2,050 Caterpillar machines. This

transaction kept the company alive during the Great Depression.

1931: Caterpillar’s Diesel 60 Tractor inspired diesel engine for

heavy-duty vehicles.

1941: Increased production levels were used to supply efforts in

WWII. They doubled company workforce, and even included women in the assembly lines.

1950-1975: Caterpillar completed transactions and establishments

with China and Great Britain.

1985-1993: Caterpillar launched factory-moderinization program,

costing $1.8 billion, and officially renamed Caterpillar, Inc. Also, the labor dispute begins.

1994-1998: A record-long 17-month strike begins, and ends with a

6-year contract implementation for all employees.

2001: Caterpillar and its dealers assist in rescue and relief efforts

within hours of the terrorist attacks of 9/11.

2010-2012: The largest purchase in Caterpillar history was made for

$8.8 billion, and the company made recordsales of $65.8 billion, and reached $8.48 profit/share.

2013: Caterpillar has 26 manufacturing facilities in China, and four

research development centers.

• One of Caterpillar's competitors, Joy Global, is establishing themselves in China at an alarmingly fast rate.
• The slowdown of manufacturing and high inflation in the United States and China could hinder future endeavors.
• The nature of the company depends on economic material prices and political stability.

• Komatsu could be exposed to intense competition which will cause stress on the company as a whole.
• The Japanese economy has been sluggish in close recent years, affecting future endeavors.
• The fluctuation of foreign markets affects Komatsu's performance due to its dependence on its diverse locations.

• Current emerging markets after the fiscal year of 2013 have triggered higher construction activity.
• When Caterpillar acquired Bucyrus for $8.8 billion, it expanded its product range, significantly surpassing its closest competitors.
• Future endeavors and trends, such as natural gas powered vehicles, will provide Caterpillar with new revenue opportunities.

• The residential sector is growing like wildfire in Asia, which will spike opportunity for Komatsu.
• Its diverse presence in many different countries will benefit from the rise in mining activities and the development of the countries.
• Komatsu has strong ties with mining and construction companies across the world, constantly amplifying future endeavors.

Caterpillar

Komatsu

Works Cited

Beal, Ryan, Jay Fhrone, and Tiana Jia. "Integrated Company Analysis." Integrated Company Analysis (n.d.): n. pag. Business Library. Wisconsin School of Business, 14 Dec. 2010. Web.

"Caterpillar | Caterpillar." Caterpillar | Caterpillar. N.p., 2013. Web.

"Caterpillar Inc. (CAT) - Analysis." Caterpillar Inc. (CAT) - Financial and Strategic SWOT Analysis Review. GlobalData, Mar. 2012. Web.

"Caterpillar Unveils Updated Vision 2020 Plan." Caterpillar Unveils Updated Vision 2020 Plan. Noria, Inc., n.d. Web.

Komatsu

Caterpillar

Bartlett, Christopher. "Harvard Business School." Komatsu Ltd. - Case -. N.p., Feb. 2012. Web.

"KOMATSU : KOMATSU GLOBAL." KOMATSU : KOMATSU GLOBAL. Komatsu, Ltd., Sept. 2014. Web.

Minatu, Ku. "Reference for Business." Komatsu Ltd. Advameg, Inc., Apr. 2013. Web.

Zenn, Todd. "KOMATSU LTD." News. The New York Times Company, n.d. Web. 2009.

Komatsu

Caterpillar

Internationalization Strategy

Branding Strategy

"Your Fuel for Faster Networks"

Caterpillar

Komatsu

Komatsu's internationalization strategy primarily focuses on maintaining a superior pace with the globalized automotive energy industry. Komatsu will continue to make even more established relationships with multiple countries, including third world and communist countries. Tetsuya Katada, Komatsu's president, developed an internationalization strategy called the Three G's: Growth, Global, Groupwide. The Three G's will secure the longevity of this strategic plan, focusing on growth, developing sales, overseas production and expansion, and confirming its overall globally integrated high-tech organization. Additionally, Katada stresses that the only way Komatsu will execute his vision is if Tokyo is strong and maintained.

INTERNAL REFORM, EXTERNAL PROMOTION

Komatsu constantly refreshes itself by highly-evaluating itself for constant improvement. By reinforcing company quality goals, product development, and environmental improvement, the Komatsu brand will always be recognized as one of the top supplier for products of quality, safety, and environment-friendly.

STRENGTHENING THE BRAND

Komatsu's branding strategy to strengthen the brand overall is to deepen the relationship with its consumers. Komatsu encourages that the customers solve their manufacturing issues in unison with the company, to trigger dependence on the brand itself. Komatsu has made this a critical commitment.

Caterpillar's internationalization strategy focuses heavily on macroeconomic factors, which are usually uncontrollable. With that being said, the management strategy must include negotiation, influence, and control. However, because of the global expansion, there are a combination of microeconomic factors as well. For example, competition, structure, logistics, heavy culture, and marketing. It is important to Caterpillar that their internationalization strategy runs parallel with the company's branding strategy. Essentially, Caterpillar must execute its classic business model, product development, simplify cost structure, achieve profit globally, win in China, expand more in India, lead in profitable global machine leadership, and aggressively grow power systems.

REPUTATION

Since Caterpillar's birth, the company has established itself globally, delivering high quality dealership and product. The "CAT" logo has identified itself along a superior network on work-sites around the world.

SEGMENTATION

Caterpillar's engagement in Business to Business and Business to Government which attracts government & independent contractors, and industrial corporations. Segmenting in this way amplifies customer identification, which increases profitability.

POSITIONING

Caterpillar positions itself as the hardworking person's industrial brand. It's strong communication stresses the prevalent important of the actual people that own the machines. Dealership-customer relationships are important, enabling trust and quality in the hard working people of the world.

Marketing Mix of Product

Growth.

Global.

Groupwide.

Caterpillar

Price & Promotion

Komatsu's marketing mix is strategically analyzed and implemented to drive the brand through its market.

Komatsu prices its equipment significantly lower than that of Caterpillar to be more affordable to customers.

Komatsu's geographic placement ensures that its distributors are its foundation, because of its beneficial long-term relationship.

Its products vary in many mining and construction fields.

Komatsu's promotion depends on its stakeholders, because it still holds 60% of the Japanese market share.

The environment is extremely important to Komatsu, because it is one of the main focuses of the product as being more eco-friendly than its competitors.

Lastly, Komatsu's safe, friendly, innovative, superior-quality products, services, and systems all contribute to its model ethics.

Caterpillar's set of products have expanded and surpassed the classic industrial machines that they are known for globally. The company sells and rents other products such as engines, turbines, electronics, tools, and attachments. They also have the convenience of licensing products online worldwide. It's placement and distributors are important for the foundation of the business. It's environment and ethics run parallel, because of the honesty, integrity, and values upon the company and its affect o the entire market.

Caterpillar's prices vary upon equipment category and differences in size, make, and model. For example, a classic truck-type tractor ranges between $90,000-$800,000. However, the rental program that was developed for global online customers is both for convenience and for rent-to-own options.

Caterpillar

Komatsu

Caterpillar

Komatsu

Competitors

Customers

Suppliers

1)

2)

Mike Rowe, host of Dirty Jobs, partnered with Caterpillar and said, "Caterpillar highlights the important and essential work that customers perform everyday, and the superior parts and service support during the life cycle of their equipment." With that being said, Mr. Rowe's endorsement reinforces their brand equity as being hard working and dedicated to its mass consumer. This promotion resonates with the company's base and trusting image.

2)

• Small, medium, large organizations or individuals who need loaders, dozers, excavators, scrapers, trucks, etc.
• Same mass of consumers who need to consistently meet quality, productivity, and value to meet tough business challenges at maximum capacity.

• Businesses of all sizes and individuals who need industrial-use products and services.
• Businesses and people who expects quality and reliability for their money.
• Customers varying in Asian, American, and European markets, also expanding into Latin America and the Middle East.

Komatsu's top five suppliers are some of the highest ranked industrial suppliers in the world. According to the Export Bureau, Komatsu's supply chain includes Crown Equipment Corp, Hyster-Yale Materials Handling, Hyundai Heavy Industries, KION Group, and Toyota Industries Corp.

Japanese multinational corporation.

Center of industrial machinery in Milwaukee, Wisconsin.

Holding company for the Italian public multinational manufacturer.

According to the Export Bureau, Caterpillar's top five suppliers are Costex Tractor Parts from Miami, Florida, Regal Corporation from Instanbul, Turkey, Ningbo Trade from Ningbo, China, Global Equipment Exporters from Atlanta, Georgia, and OTC Industrial Service from Bremen, Germany.

3)

The world's leading manufacturer.

South Korean multinational conglomerate company.

Swedish multinational manufacturing company.

3)