Corporate-Level Strategy

 

At Caterpillar, Inc., their corporate-level strategy is a diverse business model.  They are involved in many different areas, and each helps aid in the success of the other.  They are involved in construction and mining equipment, diesel and natural gas engines, as well as industrial gas turbines and diesel-electric locomotives.  They have been able to diversify their business model enough to please the many different consumers they have, but have their diversification close enough to be able to aid each industry they compete in.  They manufacture diesel and natural gas engines, and those engines are used in their heavy machinery and are sold on a separate basis.  By being a diversified company, Caterpillar has been able to expand throughout the world.  They are diversified enough to manufacture turbines for farmers on the prairie, and engines for locomotives that move the machines they manufacture around the United States.  Their diversified businesses have been able to be intermixed within each other.  Their locomotive engines power the trains that haul the machines across country, and the diesel engines are used to power the heavy machinery they manufacture.  They have created a business strategy that allows their various units  to complement each other and at the same time be a separate entity of the corporation.