“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Caterpillar 

Caterpillar is one of the largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company provides its products and services in three fields which include machinery, engines and financial products. A strong market position increases the bargaining leverage of the company and its access to a variety of end markets provides it with increased cross selling opportunities. However, intense competition would thus put pressure on the market share of the company.