Goodyear:
The Aquatred
Launch
GROUP 8
Introduction to Goodyear
• The Goodyear Rubber and Tire Company was founded in
1898 by Frank Seiberling and based in Akron, Ohio.
• Known as “The Gorilla”- Dominating, High investments,
innovative products
Brand shares of unit sales in US Passenger tire market
20
Replacement Market
15
10
Goodyear
Michelin
Firestone
5
0
1975
1980
1985
1990
1991
40
OEM Market
Goodyear
Michelin
Firestone
30
20
10
0
1975
1980
1985
1990
1991
• In the early and mid- 1980s, Goodyear diversified
making large investments in pipelines for natural gas
and oil transmission
• But in 1991, when Stanley Gault took over as
chairman of Goodyear, he focussed on tire business
& placed an increased priority on new product
development.
Introduction to the
American Tire Industry
• From early 1990s-1970s,
Dominated by 5 companies: Goodyear, Firestone,
Uniroyal, BF Goodrich, General Tire
• All based in Ohio
• Important Changes from 1970s to 1980s
1.
Radial tire:
•Superior tread ware
•Better handling
•Better gas mileage
•Lasts over 40,000 miles
•Stiffer ride
v/s Bias – Belted tire:
•Smoother ride
•Lasts under 20,000
miles
2. Increase in foreign competition
• Michelin of France
• Other manufacturers gained access through the
new cars exported from their home country.
Percentage of sales units of imported tires in the US
22%
30%
20%
10%
0%
12%
8%
1972
8%
22%
12%
1982
1990
3. Change in nature of demand of the customers and car
dealers
• Price of oil increased Less driving, Increase in Cost of
production
• Introduction of smaller, lighter cars
All these changes had the following impacts:
Slow growth in sales, Supply > Demand, reduction in prices,
Mergers and acquisitions took place.
250
200
150
100
50
0
Trends in passenger tire sales(in million of tires)
50
137
1976
37
123
1981
54
43
144...