Caterpillar's Strategy

Our company strategy reflects our legacy and our continuing commitment to meet the needs of our customers and the communities in which we live and work. United by our Values, Caterpillar employees around the world share a focused view of our business through the Operating & Execution Model, through which we are making strategic choices today to create profitable growth for tomorrow. Together, with our partners, we are providing the solutions that help our customers build a better, more sustainable world.

How We Act & Manage

Two people shaking hands with Cat equipment
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Two people shaking hands with Cat equipment

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. 

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

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.

Man working on assembly
Man working on assembly

Partners

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.

Dealer service technician working on equipment
Dealer service technician working on equipment

Customers

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.

Two men talking in service department
Two men talking in service department

Where We're Focused

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.

Explore Services

Handing writing on tablet
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Cat Financial offers financing solutions unique to our customers’ business.

Equipment collage with Customer Value Agreement design
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Customer Value Agreements keep Cat® machines and engines ready to work with a flexible, hassle-free plan for parts delivery, service, data access and more.

Wheel loader on white background
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The Cat Certified Rebuild Program returns your end-of-life machines, systems and components to like-new condition at a fraction of the cost of buying new.

Overhead look of equipment on jobsite
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Our Job Site Solutions Fleet Management team partners with customers to help manage equipment from acquisition and fleet maintenance, to productivity and operator efficiency, to resale and disposal.

Handing writing on tablet
Equipment collage with Customer Value Agreement design
Wheel loader on white background
Overhead look of equipment on jobsite
Excavator digging
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Performance, increased power and lower operating costs are all hallmarks of the new Cat® 317 and 317 GC Next Gen Excavators.

natural gas-fueled generator on white background
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The Cat® G3412 natural gas-fueled generator is engineered to meet a full suite of critical market requirements, including quick starting and loading capability.

diesel generator sets with no background
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Our new Cat® GC diesel generator sets share the same quality and performance as our critical application product line but are value engineered to reduce installation costs, valuable footprint, freight costs, and, of course, the cost of ownership.

Excavator digging
natural gas-fueled generator on white background
diesel generator sets with no background

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.

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. 

Woman working in manufacturing environment
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Woman working in manufacturing environment
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.

Man with clipboard and equipment in background
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Man with clipboard and equipment in background
Quality

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

Lift truck driving in factory
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Lift truck driving in factory
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.

3 people talking at tradeshow
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3 people talking at tradeshow
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.

Skid steer operating in agricultural field
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Skid steer operating in agricultural field

SUSTAINABILITY

Committed to further reducing Caterpillar’s greenhouse gas emissions while helping our customers meet their climate-related objectives.

Our long-standing commitment to sustainability inspires us to set and achieve meaningful environmental, social and governance (ESG) goals and develop innovative products, technologies and services to support our customers on their sustainability journey.

We believe the energy transition represents a significant opportunity for long-term profitable growth. Through investments in technology that facilitate fuel transition, operational efficiency and reduced emissions, we are helping our customers reduce their carbon footprint while also meeting their requirements for performance, durability and economic value.

We are building on our legacy of providing products and services that advance sustainable progress and improve standards of living — supporting our customers throughout the energy transition as they build a better, more sustainable world. 

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.

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Backhoe loader and people talking at sunset

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