Reference no: EM132533584

Recapping my assessment of Caterpillar Inc.'s global strategy. Based on your assessment would you propose any changes? Why or why not?

Assess Caterpillar Inc.'s global Strategy (international, multi-domestic, global-standardization, or transnational).

The company's global Strategy operates each country individually as they compete in other markets. As a result, the company persuades marketing, advertising, and alteration of products to be changed to fit a particular need of a specific country. When thinking of a transnational strategy, the company pursues to attain both social awareness and global mixing. The company attains its universal proficiency from the growing difficulty of meeting global requests and reactions. Caterpillar Inc. generates a comprehensive strategy through the plan of duplicating products and integrating the manufacturing of elements in some vastly large-scale work area.

Nevertheless, some fabrication work-shop, in each market which build parts that go well with the demands of the regional market. The company gets a competitive advantage by outlining resources, manufacturing, logistic, services, research, and development allocation, and other areas for completing the company's goals. As a result, the company sets itself apart by offering parts of equipment that sustain the local demands. Besides, the company uses development tools for market insight and advancement; the mixture is established on numerous markets that operate throughout the world. Across the market, Caterpillar an existence in 500 major businesses everywhere globally coming together on sales. Also, the company is financial strength, and the product range is stronger existence, for instance, in Europe. Americas and the Asia Pacific.

Caterpillar Inc's global strategy is based on internationalization as the company has made use of international channels of distribution and location to stir growth. The use of internationalization is made possible by use of individual nation-based organs which promote the company goals in its individual markets. The company uses global standards in all its products as this ensures there is a standard set of products associated with the brand. By standardization of the standards, the company is able to ensure that the core values that it has built its products are promoted. The key standards being quality and durability. By ensuring that the quality of products is assured by the various industrial players it has, the company is able to build a brand that can be reckoned with. It also ensures that there are no gaps for its competitors to make market entry. In certain regions where there are common markets, it uses transnational strategies, often producing in one of the nations and exporting to the nearby nations (Stock Exchange Commission, 2017). That way, it makes use of its capital resources. In the nations where the production is low, the company employs export mechanisms, and distributorship to transport products to its local centers. The transnational mechanism is based on the terms of trade and the export policies that the nations have with each other. Therefore, the company does not have a fixed approach as it uses the one which brings it optimal returns.