1950 Company begins international expansion with the establishment of Caterpillar

1953 Company solidifies its commitment to engine market with creation of separate division for engine production.

1970s Company introduces a broad range of new products that would become the forerunners of today's best-selling product lines.

1987 $ 1.8 billion plant modernization program launched.

1990s CAT reorganizes into closer-to-the-customer business units. Profits top 1 billion for the first time ever in 1995. Sales double over six year period from 93-98 where profits hit consecutive record highs for five years (93-97).

Caterpillar Inc is headquartered in Peoria, Illinois and is the worlds leading manufacturer of diesel and natural gas engines, construction and mining equipment and industrial gas turbines. Caterpillar is a fortune 50 company that employs 65,824 people and is one of only a handful of companies that leads its industry while competing globally from a primarily domestic home base.

Since Cat is the leading U.S. exporter, with 1998 export sales of $6 billion, it records nearly half

Agriculture: As farms grow larger and the agriculture industry becomes more high-tech, Cat has decided to adopt a more aggressive agriculture strategy. It has formed joint ventures with Class, a German combine/harvester manufacturer, and is broadening its tractor product line.

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Engines: To meet the worlds growing demand for new ways to provide power, Cat's engine business is expanding its capabilities in electric power generation, and fueled systems. Planes include the acquisition of German engine manufacturer MaK and formation of a joint venture with the U.K.'s F.G. Wilson, a world leader in generator set packaging. Cat believes the sales of electric power generation products could triple in the next few years.

Over the years Cat has positioned itself so that it can sell it's products on a global scale. Structuring the company in this way has given Cat the largest market share, but it also makes the company very sensitive to changes in interest rates, commodity prices, exchange rates, and world economic growth.

5) Buyers- The bargaining power of buyers in this industry is also a significant factor. Since pricing in this industry is very competitive, quality and service have become key elements in a buyer's decision process. Greater quality and better service is how Cat is differentiating its products from its competitors. " We want customers to know that when they buy a Caterpillar machine or engine, they're getting the best in the world," Glen Burton, chairman of Caterpillar.

Forestry: The growing forestry industry is looking for more productive machines that respect the environment. The company's new commitment to this industry has brought about the acquisition of a Swedish forest products group, along with investment in the first Caterpillar facility dedicated solely to the manufacture of forest equipment.

2) Substitutes- Substitute products from other industries are practically non-existent. The type of work the Cat products are made for make it virtually impossible to find a product substitute from outside the industry. This simple fact has allowed Cat to stay the world's leading supplier of earth moving and mining equipment in the latter part of this century.

Currently 81 percent of the people in the world today live in developing countries, where there is limited access to water, electricity and transportation. Sales of Cat p

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