Goodyear Case Essay

841 words - 3 pages

Goodyear Case

In 1992, the Goodyear Tire and Rubber Company decided to reconsider the offer from Sears to sell Goodyear's Eagle brand tires. The reasons that Goodyear was contemplating this offer was that Sears was replacing worn out Goodyear tires at a large amount every year. The tires were not being replaced with Goodyear tires because the customers at Sears wanted to replace their tires with the best possible tires that Sears offered, and the Goodyear tires were not in the offering. The company's major options in this decision were whether to sell only the Eagle brand tires or all of the Goodyear tire brands.

Analysis and Evaluation

The tire industry is global in area and most competitors originate, market and sell their products worldwide. There are ten tire manufacturers that account for 75% of worldwide tire production. Of the ten tire manufacturers, Goodyear is the second largest. The industry divides into two markets: 1. The original equipment tire market and 2. The replacement tire market. The original equipment tires account for 25-30 percent of the company?s production each year and the replacement tire market accounts for 70-75 percent of the production each year.

Independent tire dealers usually carry the brands of several different major manufacturers and a discount priced private label brand so as to give the replacement buyers an assortment of prices, qualities and brands to chose from. The tire manufacturers decided that it would be profitable to produce a product line of tires to appeal to many buyers by making tires that can be driven under a variety of different road and weather conditions.

Goodyear?s principal business is the development, manufacture, distribution and sale of tires throughout the world. The distribution of tires represented 83% of the company?s corporate sales of $10.9 billion in 1991. Around 60% of Goodyear worldwide sales were in the tire replacement market and 40% were to the original equipment market. Because of the Goodyear name, which is one of the best known brand names in the world, the Goodyear tires have been positioned and priced as premium quality brands. It is one of the leading national advertisers in the U.S. The company also operates around 1,000 company owned Goodyear Auto Service Centers and sells through 2,500 franchised Goodyear Tires Dealers in the U.S. These outlets account for a good portion of the company?s annual tire sales.

Recommendations

Because of an industry analysis that expects Sears to benefit from carrying Goodyear tires, I think it would be a good idea for Goodyear to sell their tires at Sears? stores. The fact that Goodyear is losing...

Find Another Essay On Goodyear Case

Goodyear Essay

1093 words - 4 pages Executive Summary: Goodyear faces many issues with the launch of its Aquatred brand, but the most complex decision pertains to its channel strategy. Based on the case analysis, Goodyear should continue to utilize its traditional distribution channels for Aquatred since its existing channels best support the relatively high-end positioning of Aquatred tires in the marketplace. However, Goodyear should also consider expanding its product and

Challenges Facing Goodyear Essay

2640 words - 11 pages Challenges Facing Goodyear Problem Statement There are several challenges facing Goodyear in the current environment. Our sales have leveled off in the past few years and we need to increase our market share in order to improve these numbers. Our debt is high and our interest payments are eating away at our profiles so we need to get more income to pay down this debt. The more immediate question is if Goodyear should launch its new

Goodyear Co

542 words - 2 pages Throughout the years Goodyear has been distributing its tires only through the company-owned Goodyear Auto Service Centers and franchised Goodyear Tire dealers. The decision of Goodyear Company to broaden its distribution to Sears Auto Centers will have several advantages and disadvantages related to this action. Advantages: 1) Increase in sales in the short term, which will create an increase of market share in the long term. Goodyear’s sales

Charles Goodyear

995 words - 4 pages Charles Goodyear was born in New Haven, Connecticut on December 29, 1800 to Amasa and Cynthia Goodyear. Charles’s father was a hardware manufacture and a merchant. Amasa Goodyear built mainly farming tools like hayforks and scythes, which he invented. When Charles was a teenager he wanted to go into the ministry and become a pastor, but his father convinced him that he was a good business man and placed him in the hardware store of the Rogers

Goodyear Aquatred

1810 words - 7 pages Summary: Snapple, a once strong and dominant brand in the Alternative Beverage Category, is in a period of decline. Recently purchased by Triarc Beverage Group, the company will try to revitalize the brand by using a revamped marketing strategy.Company: Triarc has experience in buying and selling troubled companies. Triarc also has experience managing companies in the beverage industry. The company will now feel the pressure of trying to

goodyear tire

3099 words - 12 pages PAGE PAGE 1 Stephen M Smith2607121Marketing 601Section 981Factual SummaryGoodyear, the largest selling brand name in car tires, has been approached for a second time by Sears to purchase their top of the line Eagle line of tires. Although they rejected Sears a number of years of, Goodyear is seriously considering this proposition due to recent changes in the market leading to a decline in market share. Goodyear is battling 5 major brand name

Goodyear Tire Analysis

1659 words - 7 pages Problem Statement: With the development of Aquatread (AT), a premium differentiated tire intended for the broadline, replacement market; Goodyear (GY) must reassess its competitive position and distribution systems in the North American tire market. The GY is currently a market leader in the replacement market with 15% market share (Sales of 22.8MM units). GY¡¯s marketing strategy, in particular, the launch of AT, must be examined in the

Goodyear's Marketing Appoach

2470 words - 10 pages Marketing Approach Goodyear's Marketing Approach Introduction They are black, made out of rubber, and prosaic in design. Some have raised white letters, while others may have a lifetime tread warranty. Although rarely thought about by the consumer, until the need is absolutely necessary, this unsought durable good is used by nearly everyone. Goodyear is one of the leading manufacturers of this product. The product being tires. Goodyear's

Marketing Plan Phase Two

1457 words - 6 pages . This group would contain car, motorcycle, trailer, truck owners or the owner of any type of vehicle requiring tires. In the next step, distinction, LTB determines who in this group is unique from the rest in the group. In this case, luxury-car owners and those with upper income levels are a match for Michelin’s self inflating tire. Reaction describes how this group will respond to an event in the marketplace. In this case, the introduction

Chose an outsider or an insider being a new CEO?

1146 words - 5 pages is a common impulse of many managers facing similar threats. In the case of Firestone, it just dug itself into an even deeper hole. Its reaction did not make the company better able to fend off the threat of radial technology; quite the opposite. And companies don't only need to react to technological threats; Change also comes in the form of shifts in regulation, consumer preferences, and overall competitive dynamics.4. New CEO AdvantagesA new

Affirmative ActionThe Cases of Woods, Ledbetter, and Stone

1629 words - 7 pages simple fact that the government is still making laws to try and put a stop to it. On January 29, 2009 President Obama signed the Lilly Ledbetter Fair Pay Act in to law. By signing this act he is trying to send a clear message that to make the economy work means making the economy work for everyone (CPA Practices, 2009). Lilly Ledbetter worked as a supervisor for Goodyear Tire Co. for over 19 years. The plant manager where Lilly worked stated that

Similar Essays

Goodyear Case Essay

5208 words - 21 pages Overview of the Case Study Analysis of the Situation 3 Consumer Behaviour Analysis 3 Distribution Channel Analysis 4 Aquatred ? The Anti-Hydroplaning Tire 4 Main Issue 5 I. Costs of the Aquatred 5 II. Timing of the Launch 5 III. Consumer Behaviour 5 IV. Distribution Channels 5 Selecting Main Issue 6 Alternative Solutions 6 Solution I: Implementing a New Channel ? Just Tires 6 Solution II: Distributional Expansion to Mass Merchandisers 7 Solution

Goodyear Tires Case Study

1210 words - 5 pages Case Study: Goodyear: The Aquatred Launch Although Goodyear was the leader in U.S. passenger tire market with 15% market share, the company still had to be very careful in all things done because the competition was so intense. There were so many players in the industry, both branded and private label. Although, each of them had less than 10% of market share, the second in rank, Michelin, was growing very fast in both replacement and OEM

Case Study: Good Year

1962 words - 8 pages Background:Goodyear is one of the world’s leading tire brands, with their brand being marketed in all major continents and markets. Goodyear produces a vast array of tires ranging from racing tires to luxury tires to heavy-duty tires, along with high performance engineering and manufacturing products. Goodyear has over 60 manufacturing facilities in 25 countries and employs around 70,000 people. It has recently been named in Forbes magazine

Goodyear Case Studies Essay

2437 words - 10 pages GOODYEAR TIRE & RUBBER CO. BUSINESS BACKGROUNDThe Goodyear Tire and Rubber Company is the world's largest tire company, with revenues of approximately $14 billion and more than 90,000 employees worldwide. Its largest unit, North American Tire, provides original equipment and replacement tires for autos, motorcycles, trucks, and farm, aircraft and construction applications in the United States, Canada and export markets. In addition to