Business Strategy

Caterpillar, Inc. uses a differentiation strategy as their business strategy.  They differentiate themselves by having a large dealer network that spans the United States as well as the rest of the globe.  No one company in their industry has as strong of a dealer network as Caterpillar does.  To make that dealer network better another aspect of Caterpillar's differentiation strategy is the wide variety of products that they offer their customers.  They offer over 25 brands and 13 product lines that range from earth moving equipment to turbines.  Being able to have a wide variety of products and brands to offer consumers and a dealer network that spans the globe, has allowed Caterpillar, Inc. to use the differentiation strategy to their advantage.  They have effectively used this strategy and it has made them the number one company in their industry.