According to Hill and Jones (2004 p 37) an industry is a number of companies which offer similar products (services) that please the same customer needs. 'There are around one billion tyres produced each year across the globe' (Tyres recycling 2004) and 'they are one of the most important safety components of any vehicle' (Consumers Reports 1997). This creates an industry which serves a functional need to all drivers. The industry provides all automobiles with a vital component for high performance.
This report concentrates on the global tyre industry, but has a particular focus on car tyres.
Key Players and The Market Share
The global tyre industry is mainly dominated by four international tyre manufactures. These are Michelin (France), Bridgestone/Firestones (Japan), Goodyear (United States) and Continental (Germany).
Datamonitor (2005) found that, Michelin is one of the world's largest manufactures of tyres with a market share of over 20% of the world tyre market.
Bridgestone/Firestone is a very close contender of Michelin with 18% of the market share. (Datamonitor 2005).
In total, 'the four leading players in the global tyre and rubber industry collectively control approximately 61% of the market value share.'(Datamonitor 2004). Continental did increase its global Market share tremendously since 2002. In 2002, 'Michelin, Bridgestone and Goodyear had nearly 60% of the global tyre market between them. (Tierney, Palmer, Dawson, Muller 2002)
Tyre manufacturers produce more featured products to result in higher demand and popularity.
Tyres to suit different driving conditions have also been produced, 'Wet weather tyres are offered by most manufacturers' (Mintel 2001). Amongst these developments are also tyres invented with; low-noise, better grip, durability, lower lolling resistance' (Mintel 2001). Tyres for high performance have experienced consistent increase due to the increase in popularity of the sports car and 4x4...