Group Name:
DOLLAR
Basic information about the company
• Founder of the company-Frank A. Seiberling.
• Started in the year- 1898
• Their slogan "More people ride on Goodyear tires than
on any other kind“ in the year 1916
• and became the world's biggest rubber company in
the year 1926.
• Today Goodyear Tire & Rubber Company is recognized
as one of the world's most valued companies by the
Reputation Institute and Forbes Magazine.
About tyre’s
• Tyre is a high technology product, an amalgam of
several otherwise incompatible materials like natural
rubber, synthetic rubber, steel, nylon, carbon black,
rubber chemicals etc.
• It absorbs shock, rolls freely, distorts in shape while
cornering, braking and crossing obstacles, yet regains
the shape quickly, provides road grip and offers driving
comfort.
• Tyre making needs multidisciplinary technology
involving physics, chemistry, engineering, metallurgy,
textile technology and polymer science.
• If one were to broadly classify the evolution of technology in the tyre industry, of
course with the exception of the Stone Age version often seen in cartoons with a
club wielding cave man, they could broadly be classified into three categories –
bias, radial tyres and tubeless radial tyres.
• Radial tyre that is commonly used in passenger cars and increasingly in
commercial vehicles have reached the present zenith in a way quite unique to
itself – and is worth a brief look into, to understand how some technologies have
had to take the tough ride before gaining general public acceptance.
• In its initial days in the US, radial tyre technology was very nearly dumped by the
then pundits of the automobile industry as a virtual non starter and a gimmick
holding no promise, not destined to make any progress worth investing time and
money in.
Technology
• Goodyear’s revolutionary manufacturing technology,
called IMPACT, stands for Integrated Manufacturing,
Precision-Assembled, Cellular Technology.
• Integrated Manufacturing – a systems approach to
blending people productivity with innovative
technology to produce higher quality tires.
• Precision Assembled means that all materials in the
finished tire are located exactly as specified by the
design engineer.
• Cellular Technology minimizes transportation time and
in-process inventory. This results in a shorter
production cycle time.
• IMPACT is 43 percent more precise than the
current industry capability and benefits
consumers with:
• Improved ride, handling and tread wear.
• Reduced tire weight and rolling resistance
• Improved tire appearance
• The elimination of splices in critical tire
components, fewer processing steps, and
improved quality.
Advantage created by Goodyear
• There are two components to the tire market: the original
equipment market and the replacement market (Von Liew,
2002).
• The original equipment market includes those tires that are
included on vehicles when dealers sell them; these tires are
sold directly to the automotive manufacturers (such as
General Motors and Ford), and included on the vehicle as
part of the production process.
• Unlike many other vehicle components, however, tires are
shipped with the name of their original manufacturer
clearly visible, so being a part of the original equipment
process can help build brand awareness and possibly brand
loyalty.
Strategies Adopted by Goodyear
• Cost Leadership
• A lower cost structure
• Leverage distribution
• Building brand strength
• Product leadership
• Advantaged supply chain
• Automated tire making facilities.
• R&D department.
• Product innovation
• product modernization.
• and process modernization.
• Goodyear directs its cost reduction answer to the US and other market in
order to become more effective and competitive.
Analysis
Key factors in competition of the US tire
industry.
Price plays a large factor in the tire industry.
Many consumers purchase their tires based
on the price, due to the fact that they know
little about tires and are more focused on
getting a good price in comparison
Conclusion
Good year is at 2nd position in manufacturing of tire in
US.
It has passed many hurdles to develop the company to
this level.
Goodyear was very much specific in forecasting the
demand of tire and based upon they have formed some
strategies to sell the product.
Goodyear is very much keen in analyzing the trend.
Based upon which they have cope up with the industry.
Their production technology has helped them to sell
their qualitative product at lower cost than any other in
the market.