Many
wouldn’t find a silver lining in the recent disasters that have left Japan crippled.
How could anyone with all the casualties, buildings in ruins, and power plant
crises! This isn’t the case for a rapidly growing construction equipment
company. The caterpillar company has found successes in the aftermath. The construction and mining equipment manufacturer has
had a stellar year with its stock up nearly 25% year-to-date after the company
delivered record 2011. The mess
left behind, along with more developing areas, and China’s expansion plans have
created a market segment perfect for the Caterpillar Company. Their growing
market dominance in the US
has caught the eye of Japan
with the need for equipment not only needed for the clean up but also for the rebuilding.
This along with the surrounding areas shifting from agriculture to a more
developed city make-up has created a need for the company. This relevant no
only due to the recentness of the earthquakes and the global effect but also
this is a great example of foreign company being wanted to come in establishes
dominance. The caterpillar probably would not have been as welcome if it wasn’t
for the disasters.
http://money.msn.com/top-stocks/post.aspx?post=fe7efdc6-3a95-4383-9ace-ef34aa21d9cc
2 comments:
"Small opportunities are often the beginning of great enterprises" - Demotheses
This quote is applicable to the Caterpillar company, as they have been very fortunate to capitalize on a foothold of an 'unfamiliar market', and the dividends are paying off. I'm curious to know if Caterpillar would have still been able to find a market in Japan even if Japan did not have these natural disasters strike, or how they would re-strategize their plan of entry into the Japanese market.
The opportunity the disaster in Japan provided Caterpillar is a great example of an advantage of market capitalism on a global scale. If Japan was a closed economy that had limited access ability to create heavy machiner it could take years to build the necessary equipment for a rapid clean up but being part of the global economy heavy machines manufactures were able to respond and increase production building the same high quality machines without any mandate from Japan Government to businesses for there help them the recovery.
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