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  • Caterpillar Strategy


     

    How We Act & Manage
     

    Operating & Execution Model  |  Our Values in Action

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    Operating & Execution Model

    Growing our business profitably.

    At Caterpillar, our goal isn’t to simply grow the business.?Our enterprise strategy for profitable growth means investing in areas with the most potential to create value.

    To accomplish this, we use the Operating & Execution (O&E) Model. It helps us identify whether individual areas of our business are creating or consuming value. We use facts and data to understand which industries are most attractive and what it would take to win. We then implement strategies to improve our competitive position in profitable businesses and allocate resources to areas that have the best potential for future growth.?

    Dealership Dealership

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    Our Values in Action

    We make our work environment and the world better through our actions.

    Though our business evolves with a changing marketplace, Our Values in Action are timeless, guiding our conduct with customers, partners and one another around the world. Our Values in Action defines what we do and how we do it. Using our Values, we go beyond compliance to create an inclusive work environment where we are proud to belong and can do our best work.

    • Integrity – we believe in the power of honesty
    • Excellence – we set and achieve ambitious goals
    • Teamwork – we help each other succeed
    • Commitment – we embrace our responsibilities
    • Sustainability – we are committed to building a better world


     

    Who We Engage

     

    People People

    People

    It’s people that matter.

    It’s people that matter and people who help build a better world. The people of Caterpillar are busy doing just that.

    As individuals and as a company, at work and in our communities, our people share time and talents – working together for the greater good. Our worldwide team is diverse, innovative, resourceful and committed. We work together to create an inclusive culture where people grow, careers blossom and imaginations flourish. The work we do is meaningful and we attract and retain the best talent.

    Partners Partners

    Partners

    Helping Our Customers Build a Better World.

    We deliver unmatched products, services and solutions through strong collaboration with our global dealers and suppliers. Our distribution partners’ expertise and capabilities make our network the best in the world. It’s a competitive advantage and a differentiator for our products and services. We work closely with our partners on everything from product development to aftermarket solutions.

    Together with our partners, we help make our customers more successful by developing lifelong relationships and earning trust and loyalty through a superior customer experience.

    Customers Customers

    Customers

    Making them successful.

    Our customers are the reason we’re in business – they use our products to build a better world. We aim to make Caterpillar the easy choice throughout the entire equipment lifecycle. Our goal is to make our customers more successful with our products and services than with the products and services of our competitors.

    We continue to focus on a rapidly evolving set of customer needs, working to provide a wide variety of products for different application requirements. With a deep understanding of customer needs, we increase value through services that offer minimized downtime, improved efficiency and a superior customer experience – online and in person.


     

    Where We’re Focused
     

    Services  |  Expanded Offerings  |  Operational Excellence

    Services

    Services make our customers more successful.

    Services growth is a core focus of our strategy. We have a bold goal to double our Machinery, Energy and Transportation (ME&T) services sales to $28 billion by 2026 from our 2016 baseline.

    At Caterpillar, we define services as the value we provide to customers after the equipment purchase – everything from aftermarket parts to maintenance agreements to financing – with a goal of delivering a superior customer experience. We invest time, talent and?resources in service offerings because they drive value for our customers. Services can reduce total owning and operating costs for customers and deliver revenue for Caterpillar and our dealers throughout the cycles.

    Our services set us apart from the competition by allowing us to provide unique insights and customer-focused solutions throughout the lifecycle of our products. Using our large installed base of connected equipment, outstanding field technology, and decades of product, service and application expertise, we can transform traditional offerings into services that make our customers more successful.

    Goal to double Machine, Energy & Translation Services sales by 2026. Goal to double Machine, Energy & Translation Services sales by 2026.

    Expanded Offerings

    Differentiated solutions built around our customers’ highest priorities.

    Understanding our customers begins with knowing where and how they use our products and services, including the applications, attributes and performance capabilities that matter most to them. As we continue to expand our product offerings to meet customer needs, we are growing our product line beyond core performance products and offering solutions with unique value propositions that reach more customers than ever before.

    As a global leader, we strive to offer not only great products, but also solutions beyond the iron – we're investing in technology to enable growth. Our focus on expanded offerings is a commitment to create greater customer value and increase loyalty by providing the right solutions and technologies, for the right applications, in the right geographies.

    Expanded Offerings Expanded Offerings

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    Operational Excellence

    Growing profitably requires a strong operational foundation.

    Building on our core competencies – safety, quality, Lean and a competitive and flexible cost structure – we are positioned to deliver strong operational performance through the cycles.?

    Safety Safety

    Safety

    Safety remains our first and most significant priority. We must never relent on our commitment to ensure every employee returns home safely every day.

    We also prioritize safety for our customers and dealers by offering training, resources and safety features.

    quality quality

    Quality

    We’re committed to quality. It’s what our customers expect from the Cat? brand.

    Lean Lean

    Lean

    We’ve seen great successes using Lean in manufacturing, but we are expanding it to all other areas of our business, including product development and transactional work.

    The Lean vision aims to accelerate knowledge, best practice sharing and success metrics at all levels.

    Cost Structure Cost Structure

    Competitive and Flexible Cost Structure

    It’s critical to maintain a competitive and flexible cost structure throughout our business cycle. Our ability to have both competitive and flexible costs based on industry volumes will separate Caterpillar from our competitors.

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    Our Goal

    Profitable Growth

    Profitable growth is our clear definition of winning.

    Profitable growth allows us to invest in future products and services – and in our people to ensure they are recognized, rewarded and developed for continued success. Higher profits also mean more money to invest in our company, improving our position as a global leader, providing better solutions to customers and creating more opportunities for our people, partners and shareholders.

    Profitable Growth Profitable Growth

    Investor Information

    Keep up with timely, comprehensive financial information.

    Learn More


    Our Purpose 

    Learn how our solutions help our customers build a better world. 

    Learn More


    Caterpillar at a Glance

    Quick facts about Caterpillar – the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

    Learn More


    Cat? Dealers Make the Difference

    Your Cat dealer is committed to maximizing your success, helping you get the most out of your operations with site-level solutions, service and support

    Learn More on cat.com

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