Caterpillar Inc. Market Presence in UK
"Caterpillar is an Industrial goods company present globally. It's headquartered at the US and is a market leader in the US market. Caterpillar Inc. has been operational in the European market since early 1990s and it started its first ever plant in the UK more than 50 years ago. With a current employee base of more than 10, 000 employees, UK market is the second largest market for Caterpillar after the US.
The products and services offered in the UK market contribute heavily towards the revenue of the company. Hence, it is deemed an important marketplace from business standpoint. Company is planning to expand its operations in the UK market and improve the market presence.
Though the economic conditions of the market are not favorable and the sales have decreased by 6% to $274 million. Sales volume decreased to $278 million. Price realization has increased and currency has decreased by $80 million and $76 million, respectively. The demand for the Industry products that Caterpillar offers has also decreased. Low turbine sales affecting the sales of petroleum applications, slowed down demand for production applications and land based drilling, decreased demand for marine applications have all in total have negatively influenced the market for the products offered by Caterpillar Inc.
But an economic growth of 2% in European markets has been forecasted which a better statistics is as compared to that of 2009 and 2010. Construction Industry is expected to improve in the European belt which will push the demand for the construction equipment produced by Caterpillar. The company is excessively technology driven and a diversified manufacturer of Industrial goods and equipments. The company is socially active and environment friendly. They use processes that ensure the health and safety of the employees at the plants. In UK, the company is committed to deliver high-quality products while maintaining an image of sustainable and advantageous business entity.
In the wake of volatile European economic conditions, the company has to plan its expansion and sales strategies carefully and strategically. It needs to partner with dealers extensively and promote the products that fit in to the most revenue earning category looking at the market conditions.
Which of the products will prove beneficial in improving the revenue of Caterpillar Inc in the UK market? What channel strategies and manufacturing decisions will the company take to boost its UK sales? Will the political and economic environment of UK improve?"