Discussion of Strategic Management in Business

Strengths Weaknesses
  • Strong free cash flow
  • Superior performance in new markets
  • Good capital returns
  • Successful Go to Market strategies
  • Reliable suppliers
  • Automation of operations
  • High level of customer satisfaction
  • High attrition rate in the workforce
  • Low investment in research and development
  • High inventory days compared to competitors
  • Poor product marketing
  • Gaps in the range of products the company sells
  • Limited success outside the core business
  • The organizational structure is only compatible with the current business model
Threats Opportunities
  • The growing strength of local distributors
  • Rising wage levels
  • Variable iability laws
  • Seasonal demand for high-margin products
  • Imitation counterfeit
  • New environmental regulations under the Paris Agreement
  • A shortage of skilled labor
  • New technology and innovations
  • Lower inflation rates
  • New customers from the online channels
  • Lower shipping costs due to lower delivery prices
  • Economic growth and increased customer spending
  • New trends in consumer behavior that open up a new market
  • Market development

SWOT analysis is a strategic planning tool that allows one to describe the realistic situation of any company. Caterpillar Inc. is an industry-leading manufacturer. One of the firm’s main strengths is a good performance in new markets. This is because Caterpillar Inc. has accumulated experience entering and succeeding in new markets (Lysak et AL., 2020). The expansion has helped the organization create a new revenue stream and diversify economic cycle risk in the markets in which it operates. Another remarkable strength is the irrigating return on capital expenditures. The company has been relatively successful in new projects, such as creating innovative gas turbines, and has generated good returns on capital expenditures by creating new revenue streams. A significant theme in the company’s weaknesses is a poor marketing strategy. Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, which can lead to attacks in this segment by competitors.

There are also gaps in the range of products the company sells. The lack of options may give a possible new competitor the chance to establish a presence in the field. A company’s strengths are closely related to its capabilities. With good performance in emerging markets, one of the significant capabilities of the firm is economic development, the capacity to gain new clients and expand its market share. New trends in the consumer behavior can open a new market for Caterpillar Inc. This gives the organization a great opportunity to create new revenue streams and diversify into new product categories. To address the company’s weaknesses, it is necessary to expand its marketing department and spell out a clear strategy. With this solution, the company will fill the marketing gap and prevent competitors from dominating the market.


Lysak, A., Marmon, R., & Schoen, E. J. (2020). Whistleblowing and Caterpillar Inc.’s Swiss tax strategy. Journal of business ethics education, 17(1), 237-250. Web.

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