Identify which statement(s) from the scenario best imply(ies) that CAT is adopting a cost-based strategy.

CAT offers a wide range of products and services. (Statement is from lines 2-3 of the scenario).

CAT launched a $1.85 billion program to modernize its 17 factories even though the return on investment was not guaranteed. (Statement is adapted from lines 6-7 of the scenario).

The biggest savings comes from integrated materials-handling systems that have cut inventories of tens of thousands of components by nearly 40%. (Statement is from lines 17-18 of the scenario).

Although the goal was to increase product quality, plant flexibility and reduce production-cycle time, customer satisfaction was the ultimate reason for the modernization program. (Statement is from lines 7-9).