few if any companies have perfected this strategic posture. but some clues to the right approach can be derived from a number of companies. Consider, for example, the case of Caterpillar. The need to compete with low-cost competitors such as Komatsu of Japan forced Caterpilla to look for greater cost economies. However, variations in construction practices and goverment regulations across countries meant that Caterpillar also had to be responsive to local demands, Therefore, Caterpillar con-fronted significant pressures for both cost reductions and local responsiveness.
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