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Published bySabina Freeman Modified over 9 years ago
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HarshadaHemangini Sonali Varsha KedarBhooshan
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MNC company which designs, manufactures and markets the product - EME and Engines for earthmoving and construction machines. Strong 53 percent market share worldwide Nearly 60 percent of sales was from overseas Parts represented nearly 35 percent of their total revenue 33 manufacturing plants with 22 in US Strong dealer network and support
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EME represented 70% of sales and $8.6 billion sales was achieved by CAT in 1981 EME was represented by 60 percent in Construction and 30 percent in Mining and 10 percent by Forestry Komatsu, a Japanese company was upcoming competition to CAT Decision for buying EME was dependent on manufacturer’s reputation, machine performance and dealer capability
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Negotiation with UWA for triennial contract Effect of low sales due to higher interest rates Growing competitive environment To find answer to the benefits lost after bitter 1979 strike Strengthening of US currency Global debit crisis and severe liquidity crunch Under – utilization of capacity High labor and overhead costs
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Buy back offer of CAT machines after 5 years Complete Sales and Service contract to be offered by the dealers To handle dollar fluctuation, multiple currency billing to be introduced Renting out of machines directly Contract employee strategy Strong inventory control Reduce manufacturing and R&D costs
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Target agricultural and allied industry More joint venture in European and Australian market Target complete utilization of plant – if needed stop other plants or relocate to emerging markets Turbine engines manufactured at solar turbines can be sold to aircraft manufacturers as a diversification Acquisition of non performing competitors
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