...Goodyear Tire and Rubber Company – Case Analysis 1. Introduction/Background: Goodyear Tire and Rubber Company, headquartered in Akron, Ohio, was founded by Frank and Charles Seiberling in 1898. Goodyear’s principal business is the development, manufacture, distribution and sale of tires throughout the world. In addition to Goodyear brands tires, the company owns the Kelly-Springfield Tire Company, Lee Tire and Rubber Company, Delta Tire and they manufacture private-label tires. Goodyear was the world leader in tire production until November, 1990, when Groupe Michelin acquired the Uniroyal Goodrich Tire Company. Goodyear controls 20 to 25 percent of the world’s tire manufacturing capacity and about 37 percent of the U.S. tire-making capacity. The Goodyear brand is the market share leader in North America and Latin America, number two in Asia outside Japan behind Bridgestone, and third in market share in Europe behind Michelin and Pirelli. World tire production in 1991 was approximately 850 million tires, of which 29 percent were produced in North America, 28 percent in Asia, and 23 percent in Western Europe. Ten tire manufacturers’ account for 75 percent of worldwide production. The three largest tire manufacturers account for almost 60 percent of all tires sold worldwide. Groupe Michelin, headquartered in France, is the world’s largest producer, Goodyear is the second-largest producer and Bridgestone Corporation, a Japanese firm, is the third-largest tire producer...
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...Statement Analysis Project Goodyear Tire& Rubber (GT) *Official Logo copied from (Goodyear Tire & Rubber Company official website, 2013) Corporate Name The Goodyear Tire & Rubber Company Exchange Traded In National Association of Securities Dealers Automated Quotations (NASDAQ) Ticker Symbol GT Description The Goodyear Tire & Rubber Company has a long journey of success of more than a century. Frank A. Seiberling, the founder bought first plant of the company, when the bicycle boom was spreading out around the world. The Goodyear Tire & Rubber Company was initially incorporated with a capital stock of $ 100,000, on August 29, 1928. (Goodyear Tire & Rubber Company official website, 2013) "More people ride on Goodyear tires than on any other kind" was adopted, as the slogan of the company in 1916 and 10 years later in 1926, The Goodyear Tire & Rubber Company became the largest rubber company in the world. (Goodyear Tire & Rubber Company official website, 2013) Goodyear Tire & Rubber Company took a long 53 years to reach the milestone of billion-dollar-year. At present, sales of Goodyear Tire & Rubber Company has a figure in $20 billion. (Goodyear Tire & Rubber Company official website, 2013) *Official Logo copied from (Cooper Tire & Rubber Company official website, 2013) Corporate Name Cooper Tire & Rubber Co Exchange Traded In New York Stock Exchange (NYSE) Ticker Symbol CTB Description The history of Cooper Tire Company actually dates back to 1914, when...
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...Tire Companies & Rubber Fabian D. Benson Instructor: Sharif Muhammad BUS620: Managerial Marketing 21 May 2012 Michelin North America is the world’s number one seller in commercial and heavy truck tires. Michelin North America has been around (in America) since 1907. It was founded in 1888 by Andre and Edouard Michelin brothers from France. Throughout the years this company has been in some stiff competition; like all companies go through that produce a certain product that is vital to the needs of companies, businesses, and individual needs. The competition has been Firestone, Bridgestone, and Goodyear. Although Michelin tires are by far the better product in the tire business out of the three brands, now that the economy is at one of the worse points ever; individuals are looking for the least expensive brand and product. When you have the best product it normally means you have the best technology, equipment to make the product, masterminds behind the ideas, and best goods and services. Along with being the best there is a high cost. Over the years Michelins tire prices have gone up with the cost of rubber. There are two types of rubber that Michelin uses: 1) Natural Rubber and 2) Synthetic Rubber. Synthetic Rubber is the cheapest rubber and the natural rubber is the most expensive. Rubber is a material from latex sap trees that is vulcanized and used in various products; it is the most important piece that goes into a tire. When looking at rubber...
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...2014 The Goodyear Tire and Rubber Company was founded in 1898 by F. A. Seiberlingin Akron, OH. Goodyear specializes in the design, manufacture and distribution of tires for automotive and industrial applications. They operate 60 plants in 26countries for distribution to 185 countries around the globe ("Goodyear.com", 2013). Revenues are generated through five operating units based on geographic regions North America, Latin America, European Union, Asia Pacific, and Eastern Europe (which includes the Middle East and Africa). From the North American segment, Goodyear had strong performance of $514 million for a full-year’s earnings beating the company’s target of $450 million. Goodyear was able to deliver record earnings despite a nearly half-billion dollar lost $305 million in 2009 ("Goodyear.com", 2013). Goodyear Tire and Rubber Company has gone through great change in the past years, barely skirting bankruptcy as it dealt with recession, labor difficulties and changing demand in the tire market. Avoiding default by mere days, it has rebounded to become a “buy” in most analysts portfolios. Goodyear began its transformation by realizing the growth market for tires was moving away from the commodity-based low margin tires it had featured to higher margin differentiated tires for targeted markets. The strategy requires Goodyear be less leveraged and more equity financed as the risk of selling differentiated tires is greater than that of cheaper commodity tires. Goodyear’s excessive...
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...DDANANG RUBBER JOINT STOCK COMPANY (DRC) [pic][pic] Completed by Group 6: Nguyen Thi Thanh Xuan Le Thanh Viet Bach Do Duc Trung Nguyen Thi Thanh Minh Tran Xuan Toan Issued date: September 26, 2010 Contents I. EXECUTIVE SUMMARY 3 II. COMPANY OVERVIEW 4 2.1 Company Introduction 4 2.1.1 Business activities: 4 2.1.2 Management Board: 5 2.1.3 Ownership structure: 5 2.1.4 Company’s History: 6 2.2 Products & Services 8 2.3 Business Strategy 9 III. INDUSTRY ANALYSIS 11 3.1 Industry Overview 11 3.1.1 Tire Manufacturing industry in the world 11 3.1.2 Tire Manufacturing industry in Vietnam 11 3.2 Five Forces Analysis 13 3.2.1 Bargaining Power of Suppliers: 13 3.2.2 Bargaining Power of Buyers: 13 3.2.3 Threat of Substitute products: 13 3.2.4 Threat of new entrants: 13 3.2.5 Competitive Rivalry 14 3.3 SWOT Analysis 14 IV. ANALYSIS OF FINANCIAL STATEMENT 15 4.1 Analysis of balance sheet 15 4.1.1 Current Assets 15 4.1.2 Investments and Other Assets 15 4.1.3 Account Receivables: 15 4.1.4 Inventory: 15 4.1.5 Non-current assets: 16 4.1.6 Current liabilities: 16 4.1.7 Long-term liabilities: 16 4.1.8 Resources: 16 4.2 The analysis of Income Statement 19 4.2.1 Annual Income Statement: 19 4.2.2 Quarterly Income Statement FY2010 and FY 2009 21 4.2.3 Forcasted Income Statement FY2010 26 4.3 The analysis...
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...Investment Cooper Tire vs. Goodyear Tire Analysis from years 2009-2013 September 25, 2014 Alex Anderson Robert Patterson Mason Ruesch Executive Summary Cooper Tire & Rubber Company has been history that goes back 100 years to 1914 (History). The company was started by John F. Schaefer and Claude E. Hart as together they purchased a manufacturing company that focused on tire patches, and tire cement and repair kits. The company slowly expanded and grew becoming publicly a held corporation and eventually became listed on the New York Stock Exchange in 1960 (History). 23 years later, Cooper Tire & Rubber Company joined the ranks of the Fortune 500 companies as one of the largest industrial companies in the United States (History). Today, Cooper Tire & Rubber Company and its family companies is truly global, claiming over 65 manufacturing, sales, distribution, technical and design facilities located around the world (History). Goodyear Tire & Rubber Company was founded in 1898 by Frank A. Seiberling (Goodyear Corporate). Beginning with a mere 13 employees, production began with bicycle and carriage tires, horseshoe pads, and poker chips with wages ranging from 13 to 25 cents an hour. Since then, Goodyear Tire has grown tremendously and in 1926 became the world’s largest rubber company (Goodyear Corporate). Today, both of these companies have been competing to gain advantage in the market share, not only against each other, but other companies within the same industry...
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...Sarana, Tbk) A. company profile PT Multistrada Arah Sarana Tbk (MASA) was established on June 20th, 1988 under the name of PT Oroban Perkasa. It is engaged in manufacturing Passenger Car Radial (PCR) tires and Motor Cycle (MC) tires for export and domestic market. MASA has markets its product with brand name of “Corsa”, “Strada” and “Achilles”. What happend to MASA.. * Global Crisis not to Affect MASA’s Sales (2009) In 9M09, MASA successfully raised its sales 19.2% YoY to Rp 1.2 tn. Its car tire production volume increased from 3.24 mn units in 9M08 to 3.51 mn units in 9M09, growing 8.29% YoY. In addition, MASA’s production volume of motorcycle tires boosted from 0.61 mn unit to 1.03 mn units in the same period, reflecting a 67.87%. As comparison, MASA suffered foreign exchange loss of Rp 118.5 bn in 2008, cutting its net profit margin to 0.22% as an effect of global financial crisis. * Continuing Expansion due to High Demand (2009) MASA continues to increase its car tire production capacity from 12,827 to 15,000 units per day during 2008-2009. In the same period, MASA also extended its motorcycle tire production capacity 205% YoY from 2,394 to 7,300 units per day. * Superb Performance Amid The Slower Growth of Domestic Tires Industry (2011) Amid the slower growth of Indonesia tires industry in 2011, MASA booked a significant revenue growth. In 2011, MASA’s revenue grew by 42.6% YoY to Rp 2.9 trillion from Rp 2.0 trillion in previous year. The sales volume...
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................................................................11 Detailed Financial Assumptions............................................................12 Conclusion............................................................................................13 Bibliography..........................................................................................14 I. Executive Summary Recycling tires is another major environmental problems, and make them disappear, once used, is a major problem. The mass production of tires and the difficulties to make them disappear, once used, is one of the most serious environmental problems in recent years throughout the world. A tire needs large amounts of energy to be produced (half a barrel of crude oil to manufacture a truck tire) and leads (if not properly conducted recycling tire) air pollution by taking part, usually of uncontrolled landfills....
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...Industry: * Dominated by local players(90% of tires) * In 2006, 40 competitors with production volume 70 million tires * 4 local players alone accounted 75% of sales * Expansion of automobile mkt, production of vehicle doubled b/w 1994-2004 * Growth of 2 wheelers & 3 wheelers was high because of city dwellers * Resulting in growth in no. of tires sold 4.5 % in 2004 and 5% in 2005 Two main tire technologies * Diagonal or cross ply (created in 1950) * Easily recognised with its very high profile * In contrast, represented 65% of tire sales (value?) in India * Because of factors specific to India (emerging countries) * Variable quality of road, tendency to overload vehicles * Competitive price of Cross-ply * Long life expectancy, double of radial * Great capacity of absorption on rough terrain * But poor road holding at high speed * Strong risks of coming off the rim at high torsion and stress * Radial (Created in 1965 by Michelin) * Flat but wider * Established itself in developed countries with * Increased performance * Better adhesion * Greater resistance to torsion and friction * Sales growing slowly in India but with improvements in roads and car performance * Technological improvements were being made to cars in recent years * In 2006, radial represented 85% of car tire sales by volume (28% in 1995) * Radial technology...
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...small but sure steps to minimize the waste of discarded rubber tires and choose a most useful outlet: footwear. / by Jen Horn / This is the challenge the team of Manila Sole Footwear took on when they decided to create their brand specializing in casual shoes for men and women made with recycled rubber tires and conveyor belts, and recently, also incorporated with textiles made in Baguio and Mindanao. The impact of rubber tires “A billion tires are sold annually worldwide. On average, a tire would last 2 to 4 years, depending on usage. So eventually, those tires will be thrown away,” shared Rex Somera, co-founder and managing partner of Manila Sole. These discarded tires would normally wind up being inefficiently piled up in landfills, where they occupy a lot of space due to their size. The tire shape also traps a lot of gases, like methane. “When we turn them into shoes, we cut them and then the unusable parts are smaller, more space efficient, and don’t trap gases anymore,” adds co-founder Noel Lanto. In their further research on recycling tires, Rex and Noel found that in other countries, there are other methods of recycling tires. Sometimes they are burned for alternative energy because the average tire contains about 8 liters of fuel. Though burning rubber to retrieve fuel releases a lot of toxic substances into the environment. Locally, one method of recycling is retreading – layering old tires on old tires, melting them together and cutting new treads – which...
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...American company International sales Generally increasing sales revenue since 1991 Brand recognition Brand loyalty Reduction in debt since 1991 Introduction of new tire lines The Blimp P/E ratio The world’s No. 1 tire manufacturer Patents: 2,903 Trademarks: 5 WEAKNESSES Size Declining stock price Internet sales Dealer contracts that my be inhibiting Internet sales Layoffs Sales declines in Europe, Asia, Latin America OPPORTUNITIES New international markets: China, India, Russia New international markets: Internet sales R&D expenditures\innovations THREATS Competition: Internet sales Wholesale club stores (tire sales) Bridgestone Cooper Continental Michelin Pep Boys (auto service stores) Midas (auto service stores) Auto Zone (auto service stores) Independents OVERVIEW OF STRENGTHS Size still matters and Goodyear has size. Its 1999 sales were $12,881,000,000 representing a one-year sales growth of 2%. Its net income was $241,000,000, a lot of money but a decrease of 64.7% from one year earlier. Despite that drop in net income, Goodyear paid a $.30 dividend. Its net income also beat Wall Street’s expectations. It has become the world leader in tire sales as a result of its alliance with Japan’s Sumitomo Rubber Industries. Goodyear ranks No. 130 in Fortune Magazine’s 500 list of large companies. Its product diversity includes the manufacture and sale of tires, industrial and consumer products from rubber including belts, hoses, and tank tracks, and a wide range of synthetic rubber, resins...
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...Goodyear Tire and Rubber Company Goodyear is one of the world's leading tire companies. This strategic plan for Goodyear will focus on their passenger vehicle. The plan will focus on ways to strengthen the internal and external methods to ensure that products remain at the best they can be for consumers. In doing this, we will concentrate on pricing, product placement, positioning, and most importantly promotion. Promotion has continued to drive the business and this plan will focus on it continuing to do so for years to come. Company Background & Milestones: It all began in 1898. Goodyear’s founder, Frank A. Seiberling, purchased the company’s first plant with a $3,500 down payment. With just 13 employees, Goodyear production began with a product line of bicycle and carriage tires, and horseshoe pads. Since the first bicycle tire in 1898, Goodyear pedaled its way toward becoming the world’s largest tire company, a title it earned in 1916 when it adopted the slogan "More people ride on Goodyear tires than on any other kind," becoming the world’s largest rubber company in 1926. Today, Goodyear measures sales of nearly $20 billion. Goodyear is currently the No. 1 tiremaker in North America and Latin America. Goodyear is also Europe's second largest tiremaker. In 2011, Goodyear posted net sales of $22.8 billion, up 21% over 2010. Net income available to common shareholders was $321 million in 2011. Goodyear operates 53 plants in 22 countries. Together with its subsidiaries...
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...University Assignment M8A1 This research paper is focus on Goodyear Tire and Rubber Company (Goodyear). The objective of this research paper is to determine if Goodyear should expand to Vietnam as a Foreign Direct Investment (FDI) or not. The research will focus on these areas: 1) Goodyear Financial 2) History of Goodyear 3) Principal of Business 4) The Country Vietnam a. History b. Economy d. Trade and Balance of Payments g. Intellectual property rights h. Work forces i. Currency exchange rate 5) Conclusion Goodyear is a US based company, which is traded on the New York Stock Exchange (symbol GT). They have more than 20,000 investors and employ about 72,000 people around the world. They are one of the world’s leading tire companies and second largest tire manufacturer in Europe behind Michelin. They have 55 plants in 22 countries and operate in most regions of the world. Goodyear Tire and Rubber Company was founded by Frank A. Seiberling in 1898. During the early stages of the company, rubber and cotton were the lifeblood of the organization. The wingfoot trademark of Goodyear was not known to the public until it was first advertised in 1901. In 1905, four years after Goodyear first advertised, they emerged into a tire manufacturer leader. In 1910, Goodyear became a multi-national company when it acquired foreign plant in Bowmanville, Ontario, Canada and opened sales office...
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...to be counted among the living once and privilege enough to live a normal life after the civil crisis. My parents got jobs with the largest natural company in the world “Firestone Rubber Plantation”. In 1926, the Then Firestone Tire and Company leased 1,600 square mile of jungle on Liberia West Africa with the goal of producing its own natural. Liberia was selected because of the location, soil and our good climatic condition. The company was name after the founder Harvey Firestone. II. The rubber product we see today came away from the grown. Washington Waka the general manager of the factory said; that growing and producing rubber is a lot harder than having and raising Children. From planting the rubber, tapping and collecting and finally processing and shipping it out. First step in planting a rubber tree is getting a rich fertile soil in a rubber or polished clayed container. Proper planting is the most important procedure is important because it minimize transplant shock. * Plant the seed in the center of the soil that is in the container and water. * Water the seed one a week until it is ready for transplant. * Transplanting occur after approximately several months. * The trees should be planted about a foot apart and in a straight line. * Rubber trees grow between 75-m 100ft in good soil and climate condition Wither the trees are tapped on the right or left as long as the incision is no deep enough to cause damage to the nerves...
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...Case Analysis Goodyear Tire and Rubber Company Submitted by: Rick Fletcher MB545 Marketing Management City University, Renton MBA 2000 Program Fall Quarter, 1999 Introduction The Goodyear Tire and Rubber Company is currently the #1 tire maker in the world[1]. The 101 year-old company has maintained that position through most of the company's history. However, in the early 1990's Goodyear slipped to #3 as France's Michelin and Japan's Bridgestone found better ways to get their products to consumers. To regain their #1 status, Goodyear was forced to re-think their century-old practice of marketing their product exclusively through its dealer network. Problem Definition Goodyear is facing tough competition from tire companies that focus their attention on the replacement tire market rather than the new car market. Also, their competitors do not rely solely on dealer networks to distribute their product. To respond to these challenges, Goodyear decided to focus on the replacement tire market and to sell tires through Sears, Wal-Mart, Discount Tire, and other discount stores in addition to their traditional franchise stores. The decision to sell tires through discount stores created some problems for Goodyear: • Allowing tire franchises and multibrand discount stores to sell Goodyear tires upset Goodyear dealers because it drastically increased competition. • Multibrand outlets may lure customers...
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