Goodyear Case Essay

400 Words2 Pages
Introduction During the 20 years, with the car developing, the tire industry has become more and more competitive. Goodyear Tire and Rubber Company is the one of the most famous tire company in the world and Goodyear Company is the second biggest tire company in the market. Goodyear tire and Rubber Company was founded by Frand & Charles Seiberling. They headquartered in Akron, Ohio state. The Goodyear began with bicycle and carriage tires and used new innovations of quick detachable tired and universal rim(1903) and pneumatic tire(1916) to become a world leader in tire production. There were ten biggest manufacturers produced almost 850 million tires made in 1991 and the top three company take 60% market share, it is include Groupe Michelin, Goodyear and Bridgestone. 29% of the tires produced in North America, 28% produced in Asia and 23% produced in Europe. In the tires market, Goodyear took the 38% of market share from original equipment market. However, Goodyear lose $38 million in 1990. The situation make Goodyear reconsider a proposal by Sears that would extend its distribution policy by selling their product through Sears. An estimated two million Goodyear tires are replaced annually through 850 Sears Auto Centers. Problem In 1989, Goodyear decided to reject Sears’s proposal. The proposal was negotiation about selling the Eagle brand tire in Sears. Goodyear reconsidered the proposal by Sears in 1992 because the decreasing in market. During 1987 to 1991 Goodyear decline an average of 3.2 percent in the tires market share for passenger car tires in the US. The loss from the sale fall through the Goodyear Tire dealers and warehouse membership club stores and discount tire retail outlets due to the increasing trend. Discounts and multi-brand dealers saw the market share grew by 8%, while warehouse clubs saw a growth of 6%. Goodyear's customers not

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