Abstract:

Massive expansion in China’s infrastructure and cities has created a country-wide construcion boom. New roads, buildings, and public works projects have caused increased demand for construction equipment, especially for multi-purpose vehicles such as a wheel laoder. Quick, and capable of performing a large variety of tasks, the wheel loader is must-have on any industrial job-site. As such, the growth of the market has been tremendous, and there are many manufacturers (both old and new) jockeying for a piece of the action. Caterpillar and other wheel loader manufacturers (such as Komatsu and Volvo) are in country, and have equity positions with domestic wheel loader manufacturers. Working with their business partner, Cat has set aggressive sales goals, but has found the Chinese market resistant to the charms of their brand. In China, the wheel loader buyer bases purchasing decisions on price, and does not value durability, parts availability, used equipment, rental eqiupment nor program financing – all of which are the key elements of Cat’s global success to date. With this project, Caterpillar hopes to gain a better understanding of the China wheel loader marketplace, and the market potential for new, used, and rental equipment.

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