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Company

The Goodyear Tyre and Rubber Company was founded by Outspoken Seiberling in 1898 within the Little Cuyahoga River in Akron Kentkucky. He took out thirty five hundred or so dollars coming from his brother-in-law to start the corporation. The company was named after Charles Goodyear whom discovered the rubber vulcanization process in 1839.

The company started to build their initial factory in 1902 in Akron. More than a century ago Paul Litchfield, a stock manager received a patent on the tubeless tire. In 1904 the company became a leader in auto, carriage, and bicycle tires.

In 1909, the company became involved in making airplane four tires. Goodyear uses 73, 500 people in 22 countries and operates 53 establishments globally. Goodyear Tire and Rubber Company’s mission affirmation is “To increase the value of our brands for everyone with market powered innovation, providing the highest quality wheels, related products and services, for our customers and consumers. Advantages Goodyear has evolved as a leader in wheel manufacturing and retreading across the globe.

The company may be the third major tire organization in the world with revenue exceeding twenty billion dollars. Goodyear is the best selling tire in North America. Goodyear has quite strong growth potential in all market segments. This is an optimistic strength since competition is fierce and no place for problem in the tire business because of the low income on wheels. Goodyear remains to be very lucrative despite competition and that provides Goodyear in a strong situation for future plans and innovations. Goodyear has a good liquidity situation in the market.

In the last couple of years Goodyear has advanced their position and had solid revenue streams to bolster their short and long term goals. Above the first 90 days of 2013 Goodyear’s revue was at a list 5. 5 billion dollars. Goodyear was able to achieve this even though raw materials and weaker require was present. This demonstrates that Goodyear is financially sound, conquering out competition to remain over tire sector and also shows its confident leadership and goals take target in today’s world. Weakness One among Goodyear’s disadvantages is Charge.

While Goodyear is discovering a rise in revenue and profits they will still take a large debit from recent years. On Apr 19th, 2012, Goodyear Tire and Plastic Company announced that it has completed a refinancing package of its U. S. credit facilities. These types of changes consist of increasing you can actually existing 1 . 5 billion dollars dollar existing revolving credit rating to two billion dollars dollars and the maturity day has been elevated to 2017. The company’s pre-existing 1 . a couple of billion money loan was extended till 2019. This is certainly good news for Goodyear however leaves them with a lot of debit to lessen in the future.

They must be able to reduce this debit with the strong earning they can be making and with new introductions of tires visiting market at this time. Another weakness of Goodyear is weaker overseas require. As most of Europe is in a downturn and many countries have extreme unemployment, tyre sales will be down. This not just a issue for Goodyear but for most tire makes. Goodyear must analyze their overseas marketplace strategy and take new measures to boost sales and remain profitable. When a strategy may be put in place to stay a strong pelear in European countries, Goodyear will see positive gains once again.

Goodyear can reduce losses by simply reducing products on hand and grow operation costs to make it more efficient than ever to keep their very own presence and name identification at the front in the wheel industry. Opportunities Goodyear has its own opportunities to increase and gain market share worldwide. The Cookware market is growing leaps and bounds and even more people are in a position to purchase cars than ever before. The opportunities during these markets are very great, and Goodyear will be there. Which has a solid global strategy, which include manufacturing plants abroad, Goodyear is within a solid position with a huge market presence already.

Goodyear realizes the expanding industry in Asia and is targeting on all sides with marketing and rebate promotions to cash in on the development that is generally there for the taking. If perhaps Goodyear stays aggressive, they may surely reap some benefits. Another opportunity for Goodyear have been their fresh innovation centers in Akron Ohio and Colmer-Luxembourg. These types of new centers are expanding new four tires that are being extremely praised and wanted, like the new Goodyear Assurance energy Max tyre that has twenty seven % less rolling resistance than typical tires. The newest Ultra proper grip 8 recieve more and stopping power than any kind of tire available.

With these kinds of new innovative developments and thin line detailed costs, Goodyear is poised to be a marketplace leader and extremely possibly will progress from the amount three position they presently hold, and with the way the organization is being work at this point, which is a definite possibility. Threats The highly competitive market is a major threat to Goodyear about all accounts. Bridgestone may be the largest car tire and rubberized company in the world with product sales over thirty five billion. Michelin Tire Business is the second largest car tire company in the world and quite a few companies are threats to Goodyear in sear size and operation.

You will find other car tire manufacturers, require two will be Goodyear’s biggest threats today. These significant companies have got great leadership and facilities to have the positions in the world marketplace that they carry out and are extremely competitive in nature. These companies can affordable prices to gain market share without making money for a short period of time and lower Goodyear’s marketplace down, impacting on the profits in Goodyear. Provides this been done? Very well nobody is pointing fingertips, but there are some brutal tire sales to accomplish elevated market revenue. Other risks that Goodyear faces will be the lower cost car tire manufactures.

Additional leading car tire manufactures are selling tires for lower prices to get a foothold in the market. These types of tires are excellent tires, yet may shortage the quality and reliability of any Goodyear tire. However with a good economy, persons sometimes should go with a less expensive tire to save money even if the car tire will not let them have the usage and top quality of a Goodyear. These companies can impact the more than market share and profit for Goodyear. At the same time when things are tough, people may choose these less expensive tires over Goodyear’s item, but Goodyear also has less expensive tires available to fight this, just like Dunlop and Kelly-Springfield brands.

Summary Goodyear Tire and Rubber Company can make profit in any market for auto tires, from top rated tires to reduce priced inexpensive tires. Goodyear has strong liquidity, multiple manufacturing plants and retreading services around the globe to compete in an exceedingly competitive marketplace and has done well in the past couple of years in reducing functional costs and offering tyre rebates, to position them in a wonderful position to get future expansion. If Goodyear holds to its quest statement of delivering good quality tires at a great benefit, Goodyear will continue to grow.

References

Goodyear Corporate site (2012). Recovered from: http://www.goodyear.com/corporate/about/

Cars Immediate, (2009, September 17). Recovered from: http://www.carsdirect.com/car-repair/the-7-best-tire- companies-out-there Ranker, (2012), Recovered from: http://www.ranker.com/list/world_s-top-10-tire-manufacturers-by-2010-revenue/micksgarage TR & W, (2010) Retrieved via: http://www.tiresrimsandwheels.com/top-tire-manufacturers/ Researching the market. com. (2009, December, 31) Retrieved from: http://www.marketresearch.com/map/prod/2532908.html

Client reports, (2012, April), Retrieved from: http://www.consumerreports.org/cro/tires/buying-guide.htm

Event Quick of Q1 2012 Goodyear Tire & Rubber Revenue Conference Contact , Last Fair Disclosure Wire (2012, April). Quarterly Earnings Reviews. Retrieved by: Database: Points of View Reference point Center