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  • Caterpillar V/S Komatsu: Submitted By:anurag Tiwari Ambreen Hussain Esha Kumar Kritika Shukla Chandrie Biswas

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    Anurag Tiwari
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    1) The document compares Caterpillar and Komatsu, noting that when Caterpillar launches new equipment, Komatsu can produce an equivalent machine within one week for $20k. 2) Under the first condition, where innovation is low, the document suggests Caterpillar provide additional services to increase customer perceived value and charge lower prices to gain more customers. 3) The second condition describes a scenario where Caterpillar's innovation is high and it would take Komatsu 2 years to produce the same product for $20k.

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    Caterpillar V

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    1) The document compares Caterpillar and Komatsu, noting that when Caterpillar launches new equipment, Komatsu can produce an equivalent machine within one week for $20k. 2) Under the first condition, where innovation is low, the document suggests Caterpillar provide additional services to increase customer perceived value and charge lower prices to gain more customers. 3) The second condition describes a scenario where Caterpillar's innovation is high and it would take Komatsu 2 years to produce the same product for $20k.

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    9 views6 pages

    Caterpillar V/S Komatsu: Submitted By:anurag Tiwari Ambreen Hussain Esha Kumar Kritika Shukla Chandrie Biswas

    Uploaded by

    Anurag Tiwari
    1) The document compares Caterpillar and Komatsu, noting that when Caterpillar launches new equipment, Komatsu can produce an equivalent machine within one week for $20k. 2) Under the first condition, where innovation is low, the document suggests Caterpillar provide additional services to increase customer perceived value and charge lower prices to gain more customers. 3) The second condition describes a scenario where Caterpillar's innovation is high and it would take Komatsu 2 years to produce the same product for $20k.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    CATERPILLAR v/s KOMATSU

    Submitted by :Anurag Tiwari


    Ambreen Hussain
    Esha Kumar
    Kritika Shukla
     Chandrie
     Biswas
    CONDITION 1
     The innovation in the product is so less that
    the Japanese company KOMATSU can make
    an exact equivalent within one week after
    caterpillar launches the equipment and
    KOMATSU’s Cost to make the machine is
    only $20k
    Possible solution
     Since cost price of KOMATSU is less thus
    caterpillar should provide additional services to
    increase CPV.
     Caterpillar have to charge low price and take lower
    profit share to increase the number of customers .
    Condition 2
     Theinnovation in the product is so high that
    the KOMATSU will take atleast 2 years to
    make the same product in $20k
    Possible solution
     Initially Caterpillar should divide the profit equally between
    customers and themselves, therefore the no. of customers will
    increase.
     After some time they can increase their profit share as now
    CPV is more and KOMATSU will take long time in launching
    their product.
     Once KOMATSU launches their product Caterpillar can
    reduce the price according to KOMATSU’s product.
     In case of higher profit share taken by caterpillar they can
    provide greater services to customers.
    You
    ank
    Th 

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