Case ID: 385277
Solution ID: 1649

Komatsu Ltd

Case Solution

Reviews and updates the structure and characteristics of the earth-moving equipment industry presented in the companion case, Caterpillar Tractor Co. After revealing that CAT has suffered major financial losses during the period from 1981 through 1984, the case describes how Komatsu grew from a $170 million local manufacturer in 1963 to become CAT's major challenge in the emerging global competitive battle. The case traces the strategy followed by Komatsu in developing its product technology, manufacturing capability, and marketing skills worldwide. The supplement, Caterpillar-Komatsu in 1986, provides an update to the global competitive interaction between Caterpillar and Komatsu. Caterpillar's response to Komatsu's growing market share is outlined, then the impact of rapidly changing dollar/yen exchange rates provides Caterpillar with an interesting pricing decision.


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