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Goodyear's Position in the Tyre Industry?

Autor:   •  September 5, 2011  •  Case Study  •  438 Words (2 Pages)  •  1,564 Views

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Goodyear's position in the tyre industry?

Goodyear Rubber and Tire Company had been known as "The Gorilla" for its dominance and survival in the tire industry. In the early 1900's through 1970's the U.S. tire market was dominated by five major players namely Goodyear, Firestone, Uniroyal, BF Goodrich and General Tire and the U.S. Market was characterized by consistent growth in revenues and profits but also absence of foreign competition. In the 1970's and 1980's the U.S. tire industry experienced three major chanGoodyear's position in the tyre industry?

Goodyear Rubber and Tire Company had been known as "The Gorilla" for its dominance and survival in the tire industry. In the early 1900's through 1970's the U.S. tire market was dominated by five major players namely Goodyear, Firestone, Uniroyal, BF Goodrich and General Tire and the U.S. Market was characterized by consistent growth in revenues and profits but also absence of foreign competition. In the 1970's and 1980's the U.S. tire industry experienced three major changes:-

• Emergence of the radial tire to replace the older "bias" and "bias belted" tire constructions:- The radial tire had many advantages over the older "bias" tires in terms of tread-wear, handling as well as gas mileage. The radial tires lasted for 40,000 miles whereas older "bias" tires lasted for only 20,000 miles. These tires gained market share significantly and almost all the new cars were equipped with them. The conversion of factories in order to manufacture radials required major investment thus the tire manufacturers hesitated in manufacturing these tires.

• Increase in foreign competitors:- Foreign companies such as Michelin, Bridgestone etc. entered the U.S. market with expertise in radial production whereas other tire manufacturers gained access by equipping new

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