s. In 1990, Caterpillar revised its long-range strategy to move from a focused or market niche strategy based on differentiation to more of a broad differentiation strategy.
             Caterpillar recognized that increased global competition was increasing and that in order for it to maintain its role as the industry leader, it must diversify and expand its product line and services into other areas without straying from its core competencies. As a result, Caterpillar created its Financial Products Division so that it could offer various financing options to its customers and dealers throughout the world (Annual Report 6). It also saw an opportunity in 2000 to capitalize on its worldwide distribution capability by creating the Caterpillar Logistics Division (a combination of Cat Logistics and its service parts distribution/transportation organization). Lastly, Caterpillar realized the opportunities that were available for it in the compact machines and equipment rental market due to increasing customer demand. In analyzing Caterpillar's performance, I chose to look at three indicators: 1) sales, 2) profits, and 3) market share.
             Caterpillar plans to achieve $30 billion in sales by 2006 and the chances of it doing so seem good. Caterpillar sales have increased four out of the past five years. Caterpillar's five-year average sales growth was 4.25 percent compared to just 0.83 perc
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