Komatsu's most formidable competitor in today's Global Economy is Caterpillar, Inc. With recorded sales of $16.5 billion in 1996, almost half of Caterpillar's earnings were attributed to sales outside of the United States. This information would appear to indicate that Caterpillar has a firm hold on the Global market. Conversely, Komatsu has had a difficult time establishing itself internati

Another chart on the Komatsu website outlines the forecasts for "Construction Investment in Japan". (Please see the attached chart A4) An overall examination of this chart focusing on the years 1994- 2000, indicates that there has been a steady decline in construction investment for Japan. If Komatsu were to focus all of its resources and attention on the Japanese market, which by all indications is moving in a negative direction, Komatsu would be failing to realize the growth potential in other areas of the world. This position would stagnate Komatsu's desire and intentions to be a Global competitor with companies like Caterpillar.

Would Komatsu be better off it focused its resources on the Japanese markets? The answer to this question involves not only looking at Komatsu's current objectives worldwide, but also examining the current situation of the Japanese economy and the Global economy. A chart o

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