Goodyear Tires Case Study

Case study: Goodyear: Aquatred is on sale Goodyear is the leader in the US passenger car tire market, but it has a market share of 15%, but for intense competition the company still has to be very careful . There are many players in this industry, including brands and private brands. Although each has a market share of less than 10%, Michelin is ranked second and is growing rapidly in alternatives and OEM markets. In addition, private labels are the biggest threat to all brands of tires as owner of many brand tires intends to exchange tires with their own brand.

Goodyear case In 1992, Goodyear Tire & Rubber decided to review Sears's proposal to sell Goodyear Eagle tires. Goodyear is considering this proposal. Because Sears exchanges much of Goodyear's worn tire every year. Customers at Sears wanted to replace their tires with Sears' best tires and the Goodyear tires were not on sale so the tires were not replaced with Goodyear tires. - Environmental Analysis of Sears Holdings In the next decade, several external factors will influence the development of Sears Holdings Corp. These factors constituting the external environment include factors of remote, industrial, and operational environments. In the remote environment, there are several economic and technical factors that affect Sears Holdings.

The Sears proposal proposes some strategic considerations to Goodyear. First, as a matter of distribution policy, Goodyear has not sold Goodyear tire brands through large products since the 1920s when Tire sold through Sears. Deciding to resold the Goodyear brand passenger car tire through Sears represents a major change in distribution policy and may cause conflicts between franchisees. Next, if Sears's proposal is approved, several product policy issues will arise. In particular, does the contract with Sears include (1) Only Goodyear Eagle or (2) All Goodyear brands included? Sears will provide a great opportunity for Goodyear for many reasons. Sears is a large nationwide retailer with 850 automotive centers, with 2 million replacement tires sold each year. It gives Goodyear the opportunity to prevent 2% market share decline in the past 4 years. 0 GOODYEAR Tire And Rubber Company