Summary of Case Analysis: Goodyear Tire and Rubber Company
1. INTRODUCTION GOODYEAR TIRE AND RUBBER COMPANY
Goodyear Tire and Rubber Company, was founded in 1898 and was the world tire production leader until November 1990 when Groupe Michelin took over after merging with Uniroyal Goodrich Tire Company.
Goodyear¡¦s principal business is the development, manufacture, distribution, and sale of tires throughout the world. Its tires and tube sales represent 83 % of 1991 corporate sales of $10.9 billion with corporate wide earnings of $96.9 million. It has its owned Goodyear Auto Service Centers and franchised Goodyear Tire Dealers in supporting its distribution and sale of tires in US.
Goodyear controls 20 percent of the world¡¦s tire manufacturing capacity and 37 percent of US tire-making capacity and sales outside US represent 42 % of company revenues.
Table 1 ¡V Worldwide Market Share, 1990
In early 1992, Sears, Roebuck and Company (Sears), owner of Auto Centers proposed to sell Goodyear¡¦s popular brand tire, Eagle. This has raised Goodyear¡¦s management consideration due to the following facts:
(i) Goodyear brand tires has declined 3.2 % in market share (4.9 million units) for passenger cars between 1987 to 1991;
(ii) 2 million worn-out Goodyear tires were replaced with other brands at 850 Sears Auto Centers.
2. THE ISSUE
The declining of Goodyear market share was believed due to the growth of warehouse membership club and the discount tire retail. See Table 2 and 3 below. In addition to that, about 2 million Goodyear tires were replaced by other brands at Sears Auto Centers in the Replacement Tire Market.
Table 2 ¡V US Market Share of Tire Replacement by Retail Outlet
Type of Retail Outlet 1982 (%) 1992 (%)
Traditional multibrand independent dealers 44 44
Discount multibrand independent dealers 7 15
Chain stores, department stores 20 14
Tire company stores 10 9
Service stations 11 8
Warehouse clubs 0 6
Others 8 4
Total 100 100
Table 3 ¡V Pie chart of US Market Share of Tire Replacement by Retail Outlet
The Goodyear¡¦s management is considering Sears proposal to sell its Goodyear¡¦s popular brand i.e. Eagle which basically affect it distribution policy.
In summary, the above factors l...
... middle of paper ...
...(b) Price
a. To offer high incentive in terms of transfer of price to the franchise dealers and standard incentive to Sears Auto Centers.
(c) Advertising and Promotion
a. Strategize the advertising to notify and educate customers of the new and additional channels of Goodyear tire products in the TV and newspaper;
(d) Distribution and Sales
a. To review the existing franchise contracts with the franchise dealers and provide more marketing support to both franchise dealers and Sears.
b. To restrict distribution of tires, ie. Channels (franchise and Sears) will only be able to obtain distribution from authorized distributors and not directly from manufacturer, as this will ensure price stability.
7. CONCLUSION
The recommendation is to proceed with the review of distribution policy in order to allow Sears to sell Goodyear tires and expand the franchise dealers¡¦ business to include the on-stop-service centers. This decision will re-gain market share from the warehouse club and discount independent dealers and increase sales of 2 million tires annually as the distribution channels have increase and able to tap loyalty customers of Sears.
Regarding strategic control, they were faced with determining how to move forward, and with what mix of product offerings? The leadership realized that with shrinking profits and increased competition the status quo would not guarantee long-term survival. Execution via their previously successful marketing channels would be problematic without either some sort of peace offering to dealers and installers, or a total shift in the advertising and sales process. The dealers and installers interacting with the customer were more likely to understand the customers concerns. Unless the company rebuilds their relationship with these front-line sales force, the customer service will suffer and ultimately the brand equity will continue to erode. The idea that the dealer is treated as the most valuable link to the customer and feels completely supported by the supplier, is exactly what enabled Caterpillar to survive in the late 1990’s. (Fites, 1996). Regardless of how the company addresses their root problems, a marketing channel analysis will undoubtedly conclude that both order getting and order servicing expenses will initially increase. In the short-term, the relationships must be rebuilt. In the long-term, they must shift overall strategy to remain profitable. If they elect to maintain their high-end product mix, customer expectations will increase demanding more from
b. They meet the needs of their target market by building their stores in closer proximity.
In To Kill a Mockingbird, we see a father who continuously promotes a principle of empathy to his children as a way for them to understand and approach important issues that affect people’s daily lives. For example, several times throughout the novel we see Atticus telling his children that you can “never really understand a person until you consider things from his point of view… until you climb into his sk...
In Harper Lee’s novel To Kill A Mockingbird, empathy is demonstrated throughout the novel. Empathy can be defined as the ability to understand and share the feelings of another. Atticus tries to explain to Jem and Scout about what he experiences and the things that are happening in Maycomb County. Several characters learn empathy and understand how they feel about certain things and understand the experiences of others. This plays a major role in the novel.
One character who displayed the quality of empathy was Jem Finch. Jem was growing up to be a fine young man who learned how to put himself in others shoes or empathy. “Atticus is a gentleman just like me” (Pg.131). As Jem was coming of age, he found that he preferred to carry out situations the way Atticus did. He admired the way Atticus thought-logically,
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
Growing up, my dad worked at a local aluminum plant and my mother was a stay at home parent. They both had very different parenting styles. I was the third child out of four, three girls, two boys (one that lived with us and the other we never saw). My father was more
Even though authoritarian and permissive parenting may have some minor similarities they are remarkably different from one another in their approach to raising children. One of the most striking differences is that of expected social behaviors. Authoritarian parents expect and require strict adherence to proper manners, often to an extreme! Demonstrating manners in all circumstances is a sign of obedience and respect within this parent-child relationship. This act of obedience may also be expressed in a formal style of communication rather than a casual style both to parents and others. “Yes Sir”, “No Sir”, “Please”, and “Thank You” are words of common...
Two of Ophelia’s difficulties arise from her father and brother. They believe that Hamlet is using her to take her virginity and throw it away because Ophelia will never be his wife. Her heart believes that Hamlet loves her although he promises he never has (“Hamlet” 1). Hamlet: “Ay, truly, for the power of beauty will sooner transform honesty from what it is to a bawd than the force of honesty can translate beauty into his likeness. This was sometime a paradox, but not the time gives it proof. I did love you once.” Ophelia: “Indeed, my lord, you made me believe so.” Hamlet: “You should not have believed me, for virtue cannot so inoculate our old stock ...
Sears began as a small retailer but as the years have gone by, they have become
The style of parenting with which children are raised can profoundly affect their social development, as well as their abilities to deal with life situations as adults. Parents who follow the permissive style of parenting have very few rules, no consistent limits, and more often than not give in to their children.. In a permissive family, the children are in charge.
Authoritarian parenting, is low on warmth/nurturance, harsh, and strict on discipline, and high on expectation. Parents instruct and order, they do not consider the children 's opinion as a group, and discourage verbal give-and-take. With this parenting style, children are more susceptible to antisocial peer pressure during adolescence, a time when peer influence is the greatest. Boys in this category have the highest level of violence. Teenagers become less self-reliant, persistent, socially poised, and have lower self-esteem.
buying tires is a necessity we have to find a way to make them excited
An authoritarian parent is one that kids wish their parents were not. This parenting style is known for having an abundant amount of rules and making sure they are all followed. Rules are expected to be followed without any negotiation or explanation. For example, the most common response of an authoritarian parent