Make your dealers your partners

A decade ago, many observers predicted Caterpillar's demise. Yet today the company's overall share of the world market for construction and mining equipment is the highest in its history. The biggest reason for the turnaround has been the company's system of distribution and product s...

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Bibliographic Details
Published in:Harvard business review 1996-03, Vol.74 (2), p.84-95
Main Author: Fites, Donald V
Format: Magazinearticle
Language:English
Subjects:
Capital assets
Case studies
Competition
Construction equipment industry
Construction industry
Consumers
Corporate profiles
Customer relations
Customer services
Dealers
Distribution
Distributors
Earthmoving equipment
Joint ventures
Manufacturers
Manufacturing
Organizational structure
Product design
Product development
Product lines
Sales
Turnaround management
U.S.A
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Summary:A decade ago, many observers predicted Caterpillar's demise. Yet today the company's overall share of the world market for construction and mining equipment is the highest in its history. The biggest reason for the turnaround has been the company's system of distribution and product support and the close customer relationships it fosters. The backbone of that system is Caterpillar's 186 independent dealers around the world. They have played a central role in helping the company build close relationships with customers and gain insights into how it can improve products and services. The company's success is attributed to several factors. For one thing, the company stands by its dealers in good times and bad. In addition, it gives them extraordinary support, helps ensure that the dealerships are well run, and emphasizes full and honest 2-way communication.
ISSN:0017-8012