The following is an executive summary of
The Goodyear Tire Corporation. This case analysis will include a company
background followed by a five forces model of the industry competition and
SWOT analysis. The summary will also include a financial analysis of the
corporation along with Goodyears corporate level strategies and objectives.
Finally, alternatives will be addressed, recommendations will be made, and
implementation and control will be discussed. COMPANY BACKGROUND By 1986,
Goodyear had a debt of $3.7 billion dollars. From 1982-1986 Goodyear's
principal business was development, distribution, and sales of times for most
applications. Gooyear was a multi-product, diversified conglomerate. Goodyear'
s approach to becoming a global company was having only one single global
strategy, instead of tailoring products and distribution to each national
market. THE FIVE FORCES MODEL OF INDUSTRY COMPETITION Potential Entrants
Barriers to entry: The market is at a mature stage, but the entry level is
fairly low. Degree of Rivalry · The degree of rivalry is high. Tires are sold
almost everywhere. · The companies are interdependent, the competitive
actions of one company directly affect the profitability of the others in the
industry. Bargaining Power of Suppliers · The bargaining power of the
suppliers is high. Tires are a necessity. Bargaining Power of Buyers · The
bargaining power of the buyers is relatively low. With the nature of the
competition in the industry, the top firms are doing everything possible to
get advertising space from retailers. Substitutes · The threat of substitutes
is high. There are many tire companies to choose from. You can purchase tires
from many different stores from Sears to Wal-mart. GOODYEAR TIRE CORPORATION
Goodyear's Internal Strengths · Goodyear's management -When Gualt becam...