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  • Caterpillar Vs Komatsu

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    Archana Pandurangi
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    Caterpillar considers several factors when determining price strategy, including company goals, competition, and customer perceptions of value. Returns depend on whether the company prioritizes short-term high returns or long-term market share. If Komatsu launches a competing product in two years, Caterpillar should initially price at $80k to reach the break-even point, then gradually decrease price over time as Komatsu enters the market. If Komatsu introduces a new product in one week, Caterpillar should focus on establishing barriers to entry, advancing technology, and reducing operational costs to compete.

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    Caterpillar vs Komatsu

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    Caterpillar considers several factors when determining price strategy, including company goals, competition, and customer perceptions of value. Returns depend on whether the company prioritizes short-term high returns or long-term market share. If Komatsu launches a competing product in two years, Caterpillar should initially price at $80k to reach the break-even point, then gradually decrease price over time as Komatsu enters the market. If Komatsu introduces a new product in one week, Caterpillar should focus on establishing barriers to entry, advancing technology, and reducing operational costs to compete.

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    1K views5 pages

    Caterpillar Vs Komatsu

    Uploaded by

    Archana Pandurangi
    Caterpillar considers several factors when determining price strategy, including company goals, competition, and customer perceptions of value. Returns depend on whether the company prioritizes short-term high returns or long-term market share. If Komatsu launches a competing product in two years, Caterpillar should initially price at $80k to reach the break-even point, then gradually decrease price over time as Komatsu enters the market. If Komatsu introduces a new product in one week, Caterpillar should focus on establishing barriers to entry, advancing technology, and reducing operational costs to compete.

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 5

    CATERPILLAR VS KOMATSU

    Presented By :
    Ankita Bhawsinka (08) Archana Pandurangi (09) Ekta Jha(21) Ekta Singh(22) Amit Dubey (37) Arundhati Bakshi (57) Section : I-D

    CATERPILLERS PRICE STRATEGY DEPENDS ON


    1. Companies goals/ambitions 2. Competition Knowledge 3. Customers value perceptions

    Returns depend on: If the company wants a short run, high return and doesnt mind losing competitive entry, we should price it high. If the company interest is to gain a high market share quickly and protect it over a long term, we should go for a low price but a longer pay-back.

    CATERPILLERS STRATEGY IF KOMATSU LAUNCHES PRODUCT IN 2 YEARS

    Caterpiller should price its product at $80k As the BEP is achieved, then only Caterpiller can think of cost cutting to increase sales and market With time when Komatsu is entering the market, gradual decrease in price would be recommended

    CATERPILLERS STRATEGY IF KOMATSU COMES UP WITH NEW PRODUCT IN ONE WEEK

    Barriers to entry into the market would be required New technological advancements Reduce the operational price

    THANK YOU!

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