3. Dominated by 5 major players
10.4 9.8
8.5
3.9 3.7 3.5
0
2
4
6
8
10
12
Sales (in $)
0
2
4
6
8
10
12
14
16
18
Brand shares of unit sales
1975
1985
1991
4. In 1970s and 1980s US Tire
Industry experienced 3Important
CHANGES
5. Nature of
demands from
consumers and
car makers
Increased
foreign
competition
Emergence
of Radial
Tires
Increased
from 8% to
22% in
1990
Consumers
replaced tires
less frequently
1. 2.
3.
6. Major effects of this changes
Demand for passenger tires
grew sluggishly
Tire prices in the market
declined
Increased mergers and
acquisitions
Tire producing capacity
outstripped demand
9. Goril
la of
tire
indu
stry
1987 1988 1989 1990 1991
Net Sales $9,905.2 $10,810.4 $10,869.3 $11,272.5 $10,906.8
Net income (loss) 770.9 350.1 206.8 (38.3) 96.6
Net income(loss)
per share
12.73a 6.11 3.58 (0.66) 1.61
Tire industry had became stagnant
during 1990s due to long life and
reduced demand
Sales and Income for Goodyear Subsidiaries
10. GOAL
To create a market
driven organization
and serve the
customer.
30. Gorilla
of tire
industry
18%
0%
28%
11%
36%
4% 3%
Share of Retail Sales in
1976 Garages
Warehouse clubs
Mass Merchanisers
Manfacture Owned
Outlets
Small Independent
Tire Dealers
Large Independent
Tire Chains
Other
6% 6%
12%
9%40%
23%
4%
Share of Retail Sales in
1991
Garages
Warehouse clubs
Mass Merchanisers
Manfacture Owned
Outlets
Small Independent
Tire Dealers
Large Independent
Tire Chains
Other
31. Should expand by
increasing independent
retailers
Expansion should be
done in strategic
locations
Expansion should be to
a certain extent, beyond
which will lead to
decrease in prices and
unfair trade practices
Expansion strategies
32. • Maintain brand strength and product quality as
maximum of them purchased the product based on
past experience
• Sales person, dealers should be trained to achieve
uniformity in presentation process
• Promotional offers on price
Recommendations
33. Created by Palak Goyal, IIT Kharagpur as part of an
Internship done under the guidance of Prof. Sameer
Mathur, IIM Lucknow
IIMInternship.com
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