Caterpillar is a leading firm in the construction and mining equipment industry with extensive global operations. It has approximately 108,000 employees, and its revenues were $51 billion in 2021. In addition to its manufacturing and logistics operations, Caterpillar is well known for its superb service and parts supply, and it provides retail financing for its equipment. The following questions focus on Caterpillar’s value-chain activities and the interrelationships among them as well as whether or not the firm is able to attain sustainable competitive advantage(s).

a. Where in Caterpillar’s value chain is the firm creating value for its customers?

b. What are the important relationships among Caterpillar’s value-chain activities? What are the important interdependencies? For each activity, identify the relationships and interdependencies.

c. What resources, activities, and relationships enable Caterpillar to achieve a sustainable competitive advantage?

Transcribed Image Text:

Value-Chain Activity Primary: Inbound logistics Operations Outbound logistics Marketing and sales Service Support: Procurement Technology development Human resource management General administration How Does Caterpillar Create Value for Yes/No the Customer?