Paper Abstract:
Worldwide industry as a multi-billion dollar market. Industry overview. Competition.
International considerations including market barriers and currency valuations. Examines
and evaluates the strategies of three companies: Goodyear Tire & Rubber, Cooper Tire &
Rubber and Michelin. Differences in product lines and pricing. Similar strategies of growth
through acquisition and selling multiple brands.
Paper Introduction:
Introduction Tires are such an integral part of daily life that most individuals never give
serious thought to them until they fail. Yet, the worldwide tire industry is a multi-billion
dollar market that is characterized by a few sellers, intense competition, and international
considerations including market barriers and currency valuations. Over the past 20 years,
the industry has consolidated to the point that it might well be considered an oligopoly, yet
the individual companies within the market do not behave in typical oligopolistic fashion.
This research considers the industry as a whole, and the strategies of three companies in
particular–Goodyear Tire & Rubber, Cooper Tire & Rubber and Michelin–and evaluates
the strategies that these companies have elected to follow. In
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The agreement with Pirelli has also resulted in technology transfersfrom Pirelli to Cooper,
and Cooper now distributes Pirelli tires in theUnited States. Introduction Tires are such an
integral part of daily life that most individualsnever give serious thought to them until they
fail. Michelin has recently moved awayfrom its agreements with General Motors and Fiat
in a move to boost itsprofit margins, but this could open up opportunities for
Goodyear.Goodyear has, however, chosen to focus on the tire business to the
near-exclusion of the rest of its product lines, a strategy which sets it apartfrom Cooper,
but which may prove less successful in the long-run. (2 2). In addition, the company also
manufactures private label tires(as does Cooper) that are sold through other distributors.
Unlike many other vehicle components, however, tiresare shipped with the name of their
original manufacturer clearly visible,so being a part of the original equipment process can
