Market strategy case study goodyear tire

Bridgestone Corporation held the largest share among top five players with a share of Bridgestone Corporation is one of the leading companies in the automotive tire market. It offers a range of products that increases the value and performance of the company. The company offers various products for passenger tires, motorcycle tires, commercial tires, and specialty tires.

Market strategy case study goodyear tire

The competitive pressures stemming from seller-buyer collaboration and bargaining Sellers in the industry do not differ greatly but it can be said that they do specialize in their niche category.

The trucking industry, farm equipments and automobiles all have specialized dealers who make sure that the tire manufacturers comply to their needs. Buyers in this sense therefore can collectively bargain with the manufacturers in directing the production of tires for specific purposes.

What makes this factor significant is the fact that they are the target consumers and they are in control of the level of profitability the distribution channel reaps. Hence they have an upper hand thereby can also dictate the terms and conditions of the products bought if not over the price.

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Like consumers of other industries, the specialized categories like the OE, the light trucks as well as the farm vehicles all require special production technology. To compensate the manufacturers can demand high price for their products yet at the same time are assured of the consumer base [Bridgestone Official Web site ].

To summarize, a Porter Five Forces analysis indicate that the tire manufacturing industry is categorized by intense rivalry among the top manufacturers but at the same time it diversified and long chain of distribution and supply chain open doors for intermediary competitors.

A company specializing in one or more category cannot survive the competition for long unless it has a broad range of products as in the case of Goodyear. Thus it can be said that the tire industry has high power in competitor's rivalry and market attempts to win customers.

While the other three rank a bit lower in importance.

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Shrinking market share that would is gradually negating market share for particular category. Instead it has increase the potential of the overall market share as more and more categories are being developed to cater to the individual consumers.

Market strategy case study goodyear tire

Globalization has increased the level of competition in between the distribution chain but it has also increased the complexity of consumer preference. Tire companies would have to follow the demands of these consumers or lose out in the competition.

With the Gulf oil crises currently prevailing in the industry, the cost of tires manufacturing would increase which would leave an impact on the cost benefit of the tire production category.

The involvement of the government in the industry plays a great role in the control the players has over the market.

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Intervention through legalities has thus increased great risks for the manufacturers. Changing society and lifestyle in the recent years have increased the demand for attractive cars which in turn means there is an increase in the demand for tires.

Furthermore, as dual income families are increasing, the need to have separate cars has also increased the purchase of cars. Thus it can be said that the future of the tire industry in medium long-term has great potential [Nakra ]. Goodyear perhaps the leader among them all not only in broad product range but are also based on the kinds of supply chain it maintains.

The company has focused its target on the consumption level of the luxury cars and hence the OE category for its marketing strategy. Brand loyalty therefore is the focus of this company which it has been able to maintain. Advertising as well as through shareholder loyalty, it has been able to survive the toughest brunt the industry faced such as the terrorist attacksthe airline mishaps, legal cases of rivals within the industry.

However, what differentiates Goodyear from the other companies is the fact that it is innovative and it meets the demands of the consumers [Nakra ; Russell ].

Second on the list are Michelin and its subsidiaries. Michelin similar to Goodyear also follows a brand loyalty and consumer base strategy to capture its market.

The company focuses on consumer base from its supply chain. For example through Honda consumers Michelin forms its independent consumer base and target the rest of its tire buyers through specialized categories such as trucks, racing cars, farmer vehicles etc.Goodyear Tire and Rubber Company’s mission statement is “To increase the value of our brands for everyone with market driven innovation, delivering the highest quality tires, related products and services, for our customers and consumers”.


Goodyear Aquatred Case Study - Marketing 1. Goodyear: The Aquatred Launch Maria Medvedeva, DLEMBA Behavior of consumers in the replacement tire market. Aug 18,  · This a market sizing case to estimate the US annual market size for car tires.

Case Study 1: Business Intelligence Strategy at Canadian Tire

One could start by estimating the number of cars in the US. From there, making some assumption about average replacement rate for car tires, one could calculate the number of car tires that need to be consumed every year. Goodyear’s source of strategic change was market evolution. Two factors led to this strategic change, the decline in market share for passenger car replacement tires and the possibility that replacement tires were being purchased from a competitor brand at sears.

After many years of R&D, Goodyear has developed the Aquatred, an innovative new tire. However, the tire industry has matured and evolved, raising questions concerning the Aquatred's ability to gain support from Goodyear's independent tire dealers.

Students must use information on channel evolution. Assignment Three Goodyear Tire and Rubber Company Marketing Problem Statement With the competitiveness of the US tire industry in , Goodyear Tire and Rubber Company is reconsidering a proposal from the department store Sears to carry Goodyear Eagle brand tires.

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