Goodyear- Case Studies

Essay by RozellaUniversity, Master'sB, September 2006

download word file, 10 pages 3.0


The Goodyear Tire and Rubber Company is the world's largest tire company, with revenues of approximately $14 billion and more than 90,000 employees worldwide. Its largest unit, North American Tire, provides original equipment and replacement tires for autos, motorcycles, trucks, and farm, aircraft and construction applications in the United States, Canada and export markets. In addition to Goodyear brand tires, the company produces and sells tires under other popular brand names such as Dunlop and Kelly. Goodyear also manufactures other automotive rubber products and industrial chemicals, and operates more than 2,000 tire and auto service center outlets worldwide.

The Goodyear chemical segment develops, manufactures, distributes and sells synthetic rubber and rubber lattices, various resins and organic chemicals used in rubber and plastic processing, and other chemical products to Goodyear and other industrial customers. The company also develops, manufactures, distributes and sells numerous rubber and thermoplastic products worldwide.

Products include air springs, anti-vibration products, belts and hoses for motor vehicles, conveyor and power transmission belts, air, water, steam, hydraulic, petroleum, fuel, chemical and materials handling hoses for industrial applications, and tank tracks. Goodyear has manufacturing plants dedicated to these products in the US, Australia, Brazil, Canada, Chile, China, Mexico, Slovenia, South Africa and Venezuela.

Over the past few years, the tire industry has witnessed a significant increase in competitive intensity. The combination of stepped up competition from low-cost manufacturers and a glut of manufacturing capacity has conspired to depress prices and cut margins industry wide. To strengthen their bottom lines, manufacturers have embraced measures targeted to both the revenue and the cost sides of the profitability equation. For Goodyear specifically, the ongoing adoption of on demand business elements has been a key part of its emerging competitive strategy.