Buying Pattern - Over half of all tire-buying consumers make their purchase the same day they become aware of their need for tires. .
Types of Buyers - Exhibit 3 depicts tire industry - buyer types. Aquatred buyers would be Value-oriented and Quality buyers. They are more likely to replace competitors" tires based on product research.
Company: .
The corporate goal is to create a market-driven organization. In response to the emergence of the radial tire, Goodyear made large investments during the late 1970s to convert its factories to produce radials. Based upon the S.W.O.T analysis provided in Exhibit 1, Goodyear has the opportunity to gain "first-mover advantage" in launching the Aquatred before the competition. However, Goodyear is currently carrying a large debt and the cost of the launch is a daunting $21M.
Financial - Goodyear earned less than 1% net income on total revenues of $10.91 billion in fiscal year 1991. .
Competition:.
Foreign competition - Michelin achieved large share gains in both the US replacement and OEM markets. Its image was stronger among the value-oriented and quality buyers. .
Sales - Unit sales of imported passenger tires increased from 8% in 1972 to 22% in 1990.
Brand switching - Significant proportions of consumers who owned major brands replaced their tires with private label brands because of lower price.
Competitors" products - Both Bridgestone and Michelin were planning to introduce new tires with 80K-mile warranties in 1992. .
Collaborators: .
Independent dealers are the major wholesale distribution channel for the U.S. passenger tire replacement market, and have increased their share of distribution in recent years. 50% of Goodyear's sales revenues were generated by 4,400 independent dealers, and 27% were generated by manufacturer-owned outlets. .
Context:.
Demand for passenger tires grows sluggishly. Consumers replace tires less frequently because radial tire durability and reduced driving due to higher fuel prices.
