...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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...Charles Goodyear The Strange Story of Rubber In midsummer of 1834 a bankrupt hardware merchant from Philadelphia, Charles Goodyear, walked into the New York retail store of the Roxbury India Rubber Co., America's first rubber manufacturer. He showed the store manager a new valve he had devised for rubber life preservers. The manager shook his head sadly. The company wasn't in the market for valves now; it would be lucky to stay in business at all. He showed Goodyear why: rack on rack of rubber goods which had been melted to malodorous glue by the torrid weather. In the company's factory at Roxbury, Mass., he confided, thousands of melted rubber articles were being returned by outraged customers. The directors had met in the dead of night to bury $20,000 worth of stinking rejects in a pit. The "rubber fever" of the early 1830s had ended as suddenly as it had begun. At first everybody had wanted things made of the new waterproof gum from Brazil, and factories had sprung up to meet the demand. Then abruptly the public had become fed up with the messy stuff which froze bone-hard in winter and turned glue-like in summer. Not one of the young rubber companies survived as long as five years. Investors lost millions. Rubber, everyone agreed, was through in America. Goodyear disappointedly pocketed the valve and took his first good look at rubber. He had played with bits of it as a child, but now, at 34, he experienced a sudden curiosity and wonder about this mysterious "gum elastic...
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...http://cactus.eas.asu.edu/partha/Columns/04-16-AccidentInvention.htm Innovation through Accident Audrey was born in October 2000. Audrey was conceived with a lot of fanfare, much ado and of blue blood. She was well planned and conceived with high hopes. She had everything going for her—looks, money, fame, fortune, power, hype, high expectations and a perfect incubation. A scant six month later, Audrey died. Her parents wanted it to be a quiet affair, but it was not. The death of Audrey sent shock waves through the community. How can such a tragedy happen? In case you did not get to know or love Audrey, she was not human. She was a much-hyped breed of gadget called the Internet Appliance. A sleek looking thingamajig with a touch sensitive screen that wanted to adorn your kitchen counter. It is basically a stunted computer. It can surf the web, do basic Email, get stock quotes, check up on the weather, and some limited word processing all for a lot of money ($500 to get started, $22 per month henceforth). Alex was going on a vacation, to take time off from his job of growing bacterial cultures in little Petri dishes. He was studying the effects of mucus on Staph cultures in a somewhat grungy laboratory in London. He forgot to wash up his last batch before he went off, and when he came back two weeks later, he saw an amazing sight. A mold was all over the dish, but all the bacteria were dead. To cut a long story short, Alex, or rather Dr. Alexander Fleming, found...
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...Goodyear: The Aquatred Launch (Condensed) Elaborated by: AMIRA ATHIMNI MERIEM BEN YEDDER REEM NASSAR RYM BELHADJ 0 Dr. Mehdi ZAHAF Mediterranean School of Business 17/10/2012 Outline Executive Summary ......................................................................................... 2 1. a. b. c. Situation analysis .................................................................................... 3 The market ................................................................................................ 3 Micro-environment ................................................................................... 3 Macro-environment .................................................................................. 4 2. a. b. c. d. SWOT analysis ........................................................................................ 4 Strengths ................................................................................................... 4 Weaknesses ............................................................................................... 4 Opportunities ............................................................................................ 5 Threats ...................................................................................................... 5 3. Main decisions ......................................................................................... 5 1 Executive Summary “The Aquatred” is the new innovative tires...
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...MEMORANDUM The Goodyear Tire & Rubber Co 200 Innovation Way Akron, Ohio , 44316-0001 phone: (330) 796-2121 Fax: (330) 796-2222 Date: August 05, 2013 To: Mr. Zilverstein, Head of Business Development From: Noam Hadass, Senior Analyst Subject: Analysis - Goodyear Tire & Rubber Co. Dear Mr. Zilverstein , please find below as you requested: * SWOT analysis on the company * an issue that we believe will affect the company in the future * A visual for Goodyear’s revenue in the years 2010-2012. SWOT ANALYSIS Strength: * Loyal customers: When given a choice, customers are loyal to Goodyear Tires. Instead of targeting all customers, Goodyear Tires can invest most of its resources on new customers and only a small portion on the preservation of existing ones. Weakness: * 19th largest air polluter in the U.S: the manufacturing process of Goodyear tire is ineffective regarding the amount of pollution it creates. And as the world is advancing towards “Green” manufacturing in all sectors, being a major polluter can affect the positive corporate image Goodyear are trying to create. Also this makes the company sensitive to regulation towards pollution. Opportunity: * Penetrate new markets in China and India: right to this day Goodyear has a very little market share in these developing countries. With about a third of the world’s population, this market represents an opportunity for large growth...
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...BACKGROUND AND PROBLEM DEFINITION Goodyear is the second largest producer of tires in the world. Sears made a proposal to carry one of the company’s popular brands of tires, the Eagle brand. Goodyear declined the proposal in 1989 but due to decline in market share and change in management, the company is giving the proposal a second thought. The company needs to decide whether to accept the proposal and have the Eagle brand sold in Sears or decline the offer and remain the status quo and have the tires sold only through company-owned service centers and franchised dealers. MARKET AND INDUSTRY ANALYSIS The tire industry is global and the tires produced in 1991 were about 850 million. Three largest tire manufacturers account for 60 percent of all tires sold worldwide. They are Group Michelin, Goodyear, and Bridgestone Corporation. The industry has two end-use market; the original equipment tire market (around 25 to 30 percent) and the replacement tire market (around 70 to 75 percent). Major tire manufacturers build their brand name with strong wholesale and retail dealer relationships. Goodyear’s sales in replacement tires is directly affected by the average mileage driven per vehicle. The more people drive, the better the sales of replacement tires. Consumers are very price sensitive and most likely do not know much about tires. The buyers usually take recommendations from the dealer and are not loyal to a brand. Adding retail outlets is giving Goodyear a chance to increase their...
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...Assignment 1: Financial Research Report March 24, 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...
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...Financial 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...
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...Good Year Tire and Rubber Company Case Analysis Background Goodyear Tire and Rubber Company is a profitable business which was founded in 1898. When 38 year old Frank Seiberling purchased the company he knew nothing on the longevity and success it would bring. Mr. Seiberling installed a down payment on the first Goodyear plant with a borrowed amount of $3500.During the late 1800s and early 1900s cotton and rubber were considered the lifeblood of the industry. At the time of Goodyear’s founding the existence of bicycles was fresh and business was booming at an increasing rate. With faith and the determination of 13 employees Goodyear’s initial production line consisted of bicycle and carriage tires, horseshoe pads and poker chips. With now a new need for bicycle tires being a demand for consumers Goodyear carved its mark in history as the world’s largest tire company in 1916. Strategic Issues and Problems In early 1992 Goodyear began to consider a previously declined proposal of Sears. This previously declined proposal now would benefit Goodyear because the company suffered a loss of $38 million. Good year’s market share and customer retention are both decreasing and this is becoming the overarching problem for the company. The factors to consider before making a decision on the sears proposal at hand are: 1. Goodyear brand tires reportedly declined in market share by 3.2% 2. About 2 million used or worn out Goodyear tires were being replaced at sear automotive...
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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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...Study: Goodyear Tire Coree Cox MKTG 4354 4/9/15 The Problem Due to the growth of warehouse membership clubs and discount tire retail chains, the Goodyear brand has recorded a 3.2% decline in their market share for passenger car replacement tires in the U.S., as well as, a significant drop in their repurchased tire sales. The Answer Goodyear needs to rethink and restructure their distribution policy by creating a joint venture with the mass merchandiser, Sears. Goodyear should only consider including their Eagle brand in the new distribution arrangement with Sears; this also means that Goodyear should continue offering a wide variety of exclusive Goodyear brands in their own dealerships. Lastly, Goodyear should continue widening its promotional base into the European marketplace. The Rationale An estimated 2 million worn out Goodyear tires were replaced annually at 850 Sears Auto Centers across the United States; by creating a joint venture with Sears, Goodyear could address this issue. Because Goodyear market share is shrinking, having your brand in a mass merchandiser like Sears would help reverse this effect. By only stocking one of their brands in Sears, Goodyear could mitigate the risk of cannibalization with their own franchises. Goodyear is third in European market share, so by expanding their promotional base into popular European sporting events, they could compete more effectively with Michelin Group and Pirelli. Situational Analysis Goodyear is the...
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...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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...1. What happened to Pirelli in the recent years? PEST analysis (only Technology and Economic Factor Declining market share Data? Why Pirelli left behind its main competitors? 1. Their main operation: only limited to passenger car, truck, and motor tires (general product), lack of specialized product or we can say that they are underutilized their advanced and innovative technology Main competitors? Michelin they have more diversified market segment: including passenger cars, vans, trucks, farm equipment, earthmovers and handling equipment, bicycles, motorcycles and aircraft. Goodyear Goodyear also applies the same approach with Michelin. Their range of product includes the following product: Automobiles, Trucks, Buses, Aircraft, Motorcycles, Farm Implements, Earthmoving and Mining Equipment, Industrial Equipment, and Various other applications Randy search for fuckin picture like pictures above Bridgestone Bridgestone also has more variety product compared to Pirelli. The production including passenger car, commercial tire, aircraft, offroad tires, motorcycles. Continental Similar to Pirelli in market segment passenger tire, Light truck & SUV, Commercial Tires (Bus & Truck Tires) 3. Economic Slowdown in Emerging Markets which are the main contributors for Pirelli Revenue Economic Volatility (Russia) (4% contribution) Irrespective of the wider politico-economic environment, the Russian tire market is known for being something of a roller-coaster...
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...CAR TYRES | AN Industry Overview | This project looks at the Car Tyre industry in India and how the Distribution channel helps this industry to grow and serve the needs of the End consumer. | PROJECT DONE BY:VIKRAM FALOR : DM14157RAMYAA RAMESH : DM14266AMIT SHUKLA : DM14104 | Introduction:- The Indian Tyre Industry is a critical part of the Auto Sector and there is a huge interdependent on those of the Automobile players. The Indian tyre industry accounts for approximately 5.0% of the Global tyredemandgeneratingrevenuesofapproximately`30,000cr for FY2011. Out of which 90-95% has come from the domestic market. There are around 40 tyre manufacturers in India and the top 10 tyre player’s account for approximately 90-95% of the total tyre production in India. The growth in domestic tyre industry was negatively impacted by the global slowdown in2009.Nevertheless,the industry experienced are mark able recovery in 2010. This growth was primarily driven by strong revival in automobile demand on the back of improvement in macro economy and easing of interest rates. The Indian Tyre Industry produced 119.2 mn units of tyres (1.5mntonnes) in 2010‐11. On an average, In Indian early 60.0% of the production is for replacement market, followed by 25.0% sold to OEMs directly and the balance is exported. Globally, the OEM segment constitutes 30.0% of the tyre market, exports 10.0% and the balance from replacement market. Exports turnover for India during 2010‐11 stood at `3,600cr...
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...| Understanding your customer | Individual assignment | | Imraan Ebrahim Student number 21350020 | 6/24/2013 | | Contents Introduction page 3 The Customer page 4 The Organisation page 4 The competitors page 5 The environment page 5 Marketing strategy page 6 Target market page 6 Product page 7 Range page7 Promotion page10 Place page 10 Price ...
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