...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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...ECON 2010 11 November 2012 Chinese tire tariff lifted September 2009 marked the beginning of a major tariff on imported Chinese tires created by President Obama in an effort to curtail imports considered to possibly be a detriment to U.S. workers. This motion was brought to the table by a complaint filed to the Federal Trade Commission by the United Steelworkers union citing unfair trade practices by China1. The belief was that cheap, imported Chinese tires were the root cause of the loss of over a thousand U.S. jobs in tire manufacturing. Many believe that the tariff was political posturing from Obama aimed at the ever critical Ohio automotive unions. Politics aside, the economic impact over the last 3 years has been great, or not so great, depending on which side of the fence you are standing. Import tariffs by design are used to help control trade balances with foreign countries in an effort to create a somewhat level playing field for all firms within an industry. The Chinese tire tariff has arguably been an irrelevant political attempt to bolster the support of union labor in Ohio. Beginning as early as 2000 the United States had approximately 87,000 workers domestically in tire manufacturing with that number shrinking each year down to 55,000 in 20093. As with much of domestic manufacturing, tire companies began to look to foreign countries to produce their products due to lower costs and higher volume capabilities. With approximately 46.5 million imported...
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...DEMORANVILLE GOODYEAR TIRE AND RUBBER CASE THE MARKET The global tire industry is not highly saturated and is dominated by key players who have a substantial share of the market in every region worldwide. It is divided into two segments: the original equipment tires which are sold directly to automobile manufacturers and the replacement tire market which are sold to private car owners looking to replace old tires. Key players in the tire industry have retained majority market share in both industries despite the difference in consumer behavior and buyer specifications between each market. Some of these key players include: Michelin, Goodyear and Bridgestone which collectively account for about 60% of sales. About 30% of industry volume is dedicated to original equipment tires of which Goodyear is the market leader with 38% of that total market. Although a majority of tires sold are in the tire replacement industry, tire producers unable to gain a majority share in that market consider that end consumers may stay brand loyal to the original tire brand that came with their car at time of purchase. Price competition amongst tire manufactures in this market is tight and it also yields less margins than the tire replacement industry. The replacement tire industry accounts for about 70-75% of total tire industry sales and so it is crucial that tire manufacturers hold relevant market share in this market in order to stay competitive. Major players in the tire industry are threatened...
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...securing sales for the aquatred tires in the passenger car replacement market, Goodyear faced a few competitors in the same market. Their competitors could essentially fit into two distinct categories: Primary (manufacturer-level) and Secondary (retail-level) Competitors. Primary Competitors Goodyear’s primary competitors are other tire manufacturing companies, both foreign and domestic, such as Michelin, Firestone, Bridgestone, etc. (Also, “private label” tire manufacturers fit in this category?) The industry had, in the last year, experienced many acquisitions or takeovers of smaller tire companies by dominant firms with a bigger market share. The disappearance of the smaller players was indicative of a mature market, thick with price competition, yielding economic conditions that have almost completely annihilated profit margins for all players. At the same time, consumers were becoming savvy about the need for reliability and longevity in their replacement tires, which made it critical for surviving companies to adhere to the new demands. Of all the competing tire companies, Michelin and Bridgestone, in particular, posed the biggest competition to not only Goodyear as a company, but the aquatred as a superior tire. The major key points are that: i. Michelin and Bridgestone were planning to introduce a new tire in the next two years with an improved warranty of 80,000 miles. This was as a result of increasing demand for longer-wearing tires by the typical consumer. In...
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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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...BECKHAM op yo The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant tC “We have a serious problem.” The words of Brandon Bellingham, the plant manager at Treadway’s Lima, Ohio, Tire Plant, rang in Ashley Wall’s ears. She had just attended a tense meeting where she had presented the projected year-end turnover figures for the plant. Out of a total of 50 foremen at the Lima facility, 23 of these positions had turned over in 2007. Ashley Wall had transferred to the Lima Plant as Director of Human Resources when Treadway’s plant in Greenville, South Carolina, had closed down in 2006. She was a seasoned human resources professional with over 10 years of experience at Treadway. Wall knew the turnover rate of foremen was higher at Lima than at other plants in the division; reversing this trend was her top priority. It was now November 28, 2007—approximately one month before Christmas. The plant would be closed from Christmas to New Year’s for retooling and annual maintenance. By the time the plant reopened in January 2008, Wall intended to complete a thorough analysis of the problem and a plan of action to correct it. The Treadway Tire Company employed almost 9,000 hourly and salaried staff in North America. The company was a major supplier of tires to the original equipment manufacturer1 and replacement tire markets, selling Treadway Primo, Treadway Performance, and private tire brands. The Lima Tire Plant was one of eight manufacturing...
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...SUBMITTED BY: RAMAKRISHNA KASETTY MU ID: 901719348 INSTRUCTOR: DR. TRACY CHRISTEFERO 1 Table of Contents 1. Background ......................................................................................................................................... 3 2. Founders Name ................................................................................................................................... 4 3. Vision................................................................................................................................................... 4 4. Mission ................................................................................................................................................ 4 5. Objectives............................................................................................................................................ 4 6. Product and Services ........................................................................................................................... 7 7. Market Competition.......................................................................................................................... 10 8. Laws and Regulations........................................................................................................................ 11 8.1 Business Insurance ...................................................................................................................... 11 9. Marketing Strategy...
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...This assignment shall be analysing the case study on Michelin .An exploration of Michelin's strengths and weaknesses both internally and externally, and most importantly identifying the management challenges faced by Michelin. This assignment shall thoroughly address how the challenges can be solved using the principles that were mastered during the study of Strategic Management. To find the strengths of Michelin, one will be looking at what the company is good at and also what they are doing well at. According to the case study ,the weaknesses are what Michelin is poor at and those things they need to improve on for Michelin to be successful and to grow as a company. So therefore their weakness are their major management challenges. By being able to look at the strengths and weaknesses of Michelin both internally and externally one can start to plan for Michelin in the future and to be able to look at what Michelin is going not so well and find steps to sort these problems out, which is what this essay will address. Some of Michelin's internal strength is that at the present they have three lines of production to follow. They produce the Michelin guide, and road maps, although their main line of production is their tyres .So the fact that Michelin is in more than one line of production gives them the competitive edge over their competitors. Michelin is committed to safety and is committed to keeping up with research and development in all their production and products...
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...automobile tires: bias; bias-belted; and radial. Bias-tires are built with rubberized cord fabric running diagonally from one tire rim to the other. Bias-belted tires are similar to bias tires but contain cord fabric belts between the plies and the tread. Radial tires are built with cord fabric running straight across the tire from one rim to the other. All radial tires are belted. The combination of radial ply and belting produces tires with longer tread life than either bias or bias-belted tires. Steel-belted radial tires, introduced in Europe in 1954, have been one of the biggest advances in tire design. They consist of cord fabric wrapped in a straight-across radial pattern beneath a belt. The combination provides a smoother ride, better handling, resistance to punctures, and longer tire life. Since 1980, virtually...
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...Graduate School of Management MM522 Marketing Management Zach Yabs 1.0 Executive Summary The Twheel is an innovation on the pneumatic tire that uses an internal structure of spokes instead of air pressure to hold a tire together. The Twheel will provide value to customers via increases in performance, safety, and durability, as well as decreasing maintenance times, and environmental and personal costs. There are issues to contend with such excessive vibration and safety concerns that must be corrected. The Twheel will be introduced to the U.S. market in a three phase roll-out. The Twheel will gain acceptance in the market through an initial deployment into auto-racing, which will showcase the effectiveness of technology to the masses. Coinciding with the auto-racing deployment will be heavy advertising and promotions budgets, as well as celebrity endorsements that will establish the brand image. The roll-out will then proceed to the luxury car segment at premium pricing, and then conclude with mass retailers and most car manufacturers at reduced prices. The time frame of the initial roll-out will be approximately 5 years. Future targets will include military, construction, and specialty personal transportation vehicles. 2.0 Situational Analysis 2.1 Market Summary The tire industry is well developed, yet the emerging Twheel will have its own industry characteristics. This industry analysis will describe the threat of substitute...
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...In this case, there were many problems within the Treadway Tire Lima factory plant. All of the problems were caused by the inefficient system that was in place. Most of the lower level leaders within the company were either under trained or not trained at all. Three things that could have been done to fix the system would be an organized training system within Treadway Tire, less pressure on the foreman and supervisors for immediate results on things that were outside their control, and shorter shifts. If Treadway Tire implements an organized training program, the supervisors and managers won’t have to come up with everything on their own. It will eliminate the sink or swim mentality forced on the foreman and supervisors. The training should have the following important aspects: 1. Plant operations 2. Interactions between Treadway Tire employees and Union Workers 3. Proper disciplinary actions for employees 4. Areas for personal management education and advancement In starting an organized training program, the initial training would have to happen right away for all management from foreman to managers. The initial training would help all of the leaders to be on the same page. After the initial training, it would be important to have a refresher training course every six months to a year so that the leaders would know what they could and couldn’t do. As the training program continued, the foreman and supervisors would be asked for feedback and the training program could...
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...Mohamed Bokhamseen TI 303 February/08/09 Mini Research Tire Shredding Machine Market 1-What percentage of the market can you get? After searching, the cheapest shredding machine costs about $115,000 to purchase, which cuts the tire to 2 inch chips. However, our machine, which chops the tire to very small pieces (0.079 inch), costs about $17,000 to manufacture. As a result, we a have a competitive advantage in the market by a huge margin because of the high technology we use and the extreme cheap cost of manufacturing our machine. (Source: http://www.ssiworld.com) ISS Company (Sources:http://www.shredderhotline.com/?gclid=CLab1tLDzJgCFSEhDQodAwwT0w) Chinese Company 2- Information, if available, about the average COGS? Unfortunately it was hard to find information about the COGS for our machine, but to give an assumption; there are some numbers for some competitors. For SSI Shredding Systems, inc. They are one of the biggest companies in the market that manufactures shredding machines for tires and other materials. They sell their machines at a range of $115,000 to $1,350,000. (Depending on the features of these machines). Also, I found a Chinese company that sells its tire shredder machine for $250,000. According to our case, the manufacturing costs are only $17,000. 3- When do you think that your company will start receiving profits? Due to the high competitive advantage, our sales should sky rocketing, simply, because our costs of manufacturing are...
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...think Bridgestone should have manufacturing facilities in US? Why? Why not? Bridgestone is currently world’s 3rd largest tyre manufacturer with a market share of 10.2%. Its revenues are skewed in favour of Asia and Oceania market where its competitors Goodyear and Michelin are trying hard to make a dent to its business. Moreover Bridgestone’s market share in US (US accounts for 45%of the world tyre market) is just ~2%. 1980s is seeing a lot of consolidation in the tyre industry and three players have emerged as bellwethers of the market. They are Goodyear, Michelin and Bridgestone. Company | Capacity | Main Geographical area of business | Aims to enter | Goodyear | 40 plants in 26 countries. 4500 dealers, 2000 company operated stores | US (market leader). In the replacement market, it had a full line of tyres | Asia market | Michelin | 43 plants in 16 countries | Europe - 40%US - 11% | Asia market | Bridgestone | 15 plants in 6 countries. 2500 dealers in US | Japan – 46% | US and Europe markets | Bridgestone should have manufacturing facilities in US. We base our decision on the following analysis: 1. Bridgestone has a market share of 46% in Japan. It has acquired 4 manufacturing plants in the Asia Oceania region. It is the market leader in this geographic market. It has been able to set up strong OE relationships with automobile manufacturers as well. Almost half of the tyre shops in Japan sold Bridgestone tyres. Therefore it is well positioned to protect its market...
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...True | 2. Only the tread pattern is of importance from a tire track impression at a scene. A) True B) False Points Earned: | 0.0/10.0 | | Correct Answer(s): | False | 3. The process of filling a three-dimensional footwear impression with a material which will take on and retain the characteristics in that impression is known as: A) Known impression exemplar B) Flow molding C) Casting D) Plastering E) Stone Molding Points Earned: | 0.0/10.0 | | Correct Answer(s): | C | 4. Footwear impressions can yield what information about the shoe? A) Type B) Manufacturer C) Model D) B and C E) All of the Above Points Earned: | 10.0/10.0 | | Correct Answer(s): | E | 5. Characteristics that can link a shoe to an impression are called: A) Class B) Known C) Individual D) Unknown Points Earned: | 0.0/10.0 | | Correct Answer(s): | C | 6. When taking an examination-quality photograph of a footwear impression in soil, the photograph should be taken: A) Using a tripod and oblique lighting B) Using a scale C) To eliminate any need for casting D) A & B E) B & D Points Earned: | 0.0/10.0 | | Correct Answer(s): | D | 7. The proper way to cast an impression in snow is to pour the dental stone mixture directly onto the impression. A) True B) False Points Earned: | 10.0/10.0 | | Correct Answer(s): | False | 8. An example of impression is: A) Footwear B) Tire Track C) Bite Mark D) Tool Mark E) All of the Above Points...
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...PIRELLI TYRE 2009-2011 MANAGEMENT PLAN Francesco Gori CEO & Managing Director Pirelli Tyre Agenda 2008 Tyre Results Industrial Business Consumer Business 2009-2011 Tyre Targets | 1 In 2008 Pirelli Tyre performance was adversely impacted by unforeseeable market conditions Million €, Percent Key Facts 2008 yoy Q1 Q2 31 Q3 76 Q4 74 ∆ Price/Mix +7.3% Profit & Loss Revenues EBITDA (before restructuring costs) % ∆ Exchange Rate -2.8% FY '07 4,162 549 13.2 358 8.6 358 FY '08 4,100 443 10.8 250 6.1 150 ∆% -1.5 -19.2 ∆ Volume -6.0% Impact of raw materials 14 103 88 41 18 EBIT (before restructuring costs) % EBIT (after restructuring costs) -30.2 EBIT +191 ∆ Commercial ∆ Efficiencies -4 ∆ Unit costs & other -295 A dramatic increase in all input costs (raw materials, energy, etc.) A collapse of the OE market, driving sales down by 10.2% in Q4 (5% organic) The decision to provision in 2008 results restructuring initiatives and costs worth 100 ml € Note: unaudited results, pre-closing | 2 Pirelli Tyre 2008 operating and financial performance Million € Raw materials: Labour / energy / other: (72) -195 -73 EBIT bridge (before restructuring costs) 358 263 (268) (268) (5) (15) (11) 250 EBIT 2008 EBIT 2007 Price & mix Volume Cost of inputs Efficiencies Exchange rate Depreciation / other NFP evolution * of which stock: -212 PBIT:...
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