Whether big or small all companies have to draw a strategy to increase their sales volume for the upcoming year. Some companies go for acquisitions and some have other plans that they adopt to give a new dimension to this business. In some way or the other, every company usually set up some kind of strategy for their business and adheres to that plan. It is quite imperative to establish strategies for the upcoming year and also declare them to the investors, stake holders or else they may leave people in a very ambiguous state which will deter them to invest in that particular company. This will be very harmful for the financial health of the company.
Normally, big companies tend to spend good deal of money on advertising their strategy to others. This also gives a clear set of message to their competitors that they are entering the New Year with a bang. Some companies play quiet till the last moment and when the New Year is about to begin, they start speaking about their plans to the media and general public. They also write about them on their web sites. These kinds of advertisements become very helpful to the company and also attract the attention of domestic as well as global customers.
Caterpillar one of the leading brands in the field of manufacturing mining and construction equipment does not leave any chance to promote their achievements and inform others about the sort of strategies they have set-up for the forthcoming year. Caterpillar being a very old company and a huge brand always comes out with something new that makes other patiently wait for. They basically concentrate on market acquisitions and try to increase their sales by bringing in innovative products in the market. They use this strategy as their Unique Selling Point (USP). They believe that innovation is key to any business and they apply this of thought of theirs entirely to flourish their business. Doug Oberhelman, the chairman and chief executive officer of Caterpillar says that they have good sum of money lying with them and he would like to utilize that money by pumping it in the business.
Many business heads have the same opinion. They struggle hard for the entire year to increase their sales and make good chunk of money. The money is then reinvested in the business and various financial problems are sorted with this investment. Doug Oberhelman sees the opportunity is not huge. They need to lay their focus on small growth opportunities as he see very less chance in doing something big. They are primarily focusing on mining, oil and gas an electric power. They see good business opportunity particularly in these sectors.
Caterpillar was shy of entering into the oil and gas sector as it felt the prices of oil were high. However, things have changed now and they see this moment as the right junction to enter the market. They feel the prices of oil have dropped and it makes more sense to get in the market at this juncture.