The Number 1 brand Strategic business unit is a star in the BCG matrix of Caterpillar Inc, and this is also the product that generates the greatest sales amongst its product portfolio. This will help it in earning more profits as this Strategic business unit has potential. Caterpillar Inc should vertically integrate by acquiring other firms in the supply chain. Caterpillar Inc earns a significant amount of its income from this SBU. It operates in a market that shows potential in the future. The financial services strategic business unit is a star in the BCG matrix of Caterpillar Inc. The analysis will first identify where the strategic business units of Caterpillar Inc fall within the BCG Matrix for Caterpillar Inc. The BCG Matrix for Caterpillar Inc will help Caterpillar Inc in implementing the business level strategies for its business units. The business should divest these strategic business units. Lastly, the strategic business units with low market growth rate and low relative market share are called dogs. The business should invest in these to maintain their relative market share. Strategic business units with low market growth rate but with high relative market share are called cash cows. These strategic business units require close considerations whether the business should continue with them or divest. Strategic business units with high market growth rate and low relative market share are called question marks. Businesses should invest in their stars and can implement vertical integration, market penetration, product development, market development, and horizontal integration strategies. Strategic business units with high market growth rate and high relative market share are called stars. The BCG matrix for Caterpillar Inc will help decide on the strategies that can be implemented for its strategic business units. Strategic business units are placed in one of these 4 classifications. The other of these dimensions is the relative market share of the strategic business unit. These first of these dimensions is the industry or market growth. The matrix consists of 4 classifications that are based on two dimensions. The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which helps in analysing the position of a strategic business unit and the potential it has to offer.

Caterpillar international strategy