Abstract
Cummins Inc. is a global power leader. They have positioned themselves in the market to take advantage of economic conditions as well as regulatory revisions. Knowledge of the cyclic nature of the North American trucking industry has allowed Cummins to make several good business decisions over the past few years. By continuing to expand their understanding of the industry and the market in general, Cummins will have several opportunities to expand their business and market share over the next few years. This paper will discuss these opportunities as well as the underlying macroeconomic forces in play.
Environmental Analysis
Industry Environment
Cummins Inc. is a $12 billion company based in Columbus, Indiana. The company consists of a core engine manufacturing business and several complimentary business units. The power generation, filtration, emissions solutions, turbo and marine business units are all designed to support our products. The engine business unit manufactures engines from 31 horsepower vocational engines to 3500 horsepower industrial mining and marine engines. For the purpose of this paper, I will focus on the North American heavy duty over the road trucking engines. These engines are installed in class 8 tractor trailers. The main competitors in this market are Caterpillar, Mercedes, Detroit Diesel, Mack and Volvo. For the last several years Cummins has provided engines for about a third of the market, Caterpillar another third with the rest split among the other competitors.
Remote Environment
Several macroeconomic variables have a great affect on the North American trucking industry and Cummins Inc. New equipment is expensive. For trucking compani ...