COMPANY PROFILE -Goodyear
Business Sector :Tire Manufacturing
Operating Geography :United States, North America, Global
About Goodyear :
The Goodyear Tire & Rubber Company is an American tire manufacturing Company that was founded in 1898. The company was started by Frank Seilberling and has its headquarters located in Akron, Ohio. The company deals in manufacturing of tires for a wide range of vehicles like motor cycles, automobiles, light trucks, SUVs, commercial trucks, airplanes, race cars, heavy earth mover machines and farm equipment. The company was named after American Charles Goodyear, inventor of vulcanized rubber. Goodyear Tire and Rubber Company sell its products through a network of independent dealers, regional distributors, retail outlets, and retailers. Apart from this the company provides services like retreading truck, aviation and off-road tires. The company manufactures and sells tread rubber and other tire retreading materials and also manufactures chemicals used in the rubber industry. A segment of the company business is also involved in providing commercial truck and automotive with maintenance and repair services. Natural rubber products are also available from the company.
Goodyear's mission “is to be the number one tire company by all measures." Goodyear’s vision statement reads “Become a market-focused tire company providing superior products and services to end-users and to our channel partners, leading to superior returns for our shareholders.
For the better part of a century, Goodyear's corporate values have been centered on the phrase, "Protect Our Good Name." The USP or unique selling point of Goodyear is growing into one of the world's largest tire companies, with one of the most recognized brand names.
Goodyear Revenue :
$12,321 million – FY ending December, 31st 2020
$14,745 million – FY ending December, 31st 2019
Competitive Analysis of Goodyear
The SWOT analysis for Goodyear is presented below in a matrix followed by a detailed analysis
Strengths | Weaknesses |
1. Amongst the leading tire makers
2. Broad lineup of consumer and commercial tires and services
3. Recognizable brand name globally
4. Strong focus innovation and technology
| 1. Loss recorded in FY2019 |
Opportunities | Threats |
1. Increased business due to new mobility ecosystem
2. High market potential for premium segment tires
3. Capitalizing on emerging markets
4. Goodyear Tire to acquire Cooper Tire & Rubber Company
| 1. Stiff competition from rivals
2. Volatility in raw material prices
3. Coronavirus pandemic in China and globally
|
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Detailed SWOT Analysis of Goodyear
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Increased business due to new mobility ecosystem: The rapidly changing consumer attitudes and behavior are driving a shift from individual vehicle ownership to ride-sharing as well as the adoption of connected, autonomous and electric vehicles. This shift in preference will create a New Mobility Ecosystem that takes advantage of technology, reduces cost and improves safety to give consumers more personalized transportation options. Goodyear is well positioned to take advantage of these opportunities created in the New Mobility Ecosystem. The value of the technology and expertise offered by the company will help increase its value and generate more business for it in the marketplace. In this regard the company has designed another innovative product i.e. The EfficientGrip Performance with Electric Drive technology, a prototype tire for the growing electric vehicle market and the same will be on the road by 2019 in Europe. In 2021, Goodyear announced a strategic relationship with UFODRIVE, an all-digital and electric car rental company, to enhance electric vehicle fleet performance. Both the companies will chase the opportunities to integrate their complementary mobility solutions, by using Goodyear’s intelligent tire monitoring system and solutions and UFODRIVE’s enhanced eMobility software as a service platform.
2. High market potential for premium segment tires: The growth in the global consumer tire industry is strongest in the premium segment, where Goodyear can distinguish itself from its competitors. In the U.S. and EMEA consumer replacement markets, industry growth in the 17 inch and larger segment tires was 6% in 2019. The customer survey in these countries reveal that they prefer high value-added tires both from a performance and style perspective. So this could be a potential area for luxury tire makers like Goodyear to prospect and grow its business.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Goodyear is presented below in a matrix followed by detailed analysis
Political | Economical |
1. Trade Restrictions between China and The United States, the European Union and Singapore
2. Tariffs on Imported steel
| 1. Economic Scenario in the United States
2. Economic growth rate in tire industry
3. Positive impact of lower oil prices
|
Social | Technological |
1. Change in consumer transportation preferences
2. Increase in demand of carpooling and sharing services
3. Growing demand for electric vehicles
| 1. Launch of Innovative relationships to adapt to the new transportation environment
2. Changing Trends in the Global Tire Industry
|
Legal | Environmental |
1. Safety standards for the workforce
2. Consumer protection to be taken into account
| 1. Actionable steps to promote a sustainable natural rubber supply chain
2. Development of environment friendly and durable tires
|
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Detailed Pestle Analysis of Goodyear
Political
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Economic
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Social
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Technological
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Legal
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Environmental
1. Actionable steps to promote a sustainable natural rubber supply chain: The natural rubber value chain is complex with risks of human rights issues and deforestation in Southeast Asia and other regions of the world where natural rubber is produced. The sustainability of natural rubber being cultivated across the world is a global issue and must be managed collaboratively by the natural rubber industry leaders which include government, traders, producers, consumers etc. to ensure the sustainability of their vital industry. In order to address this issue Goodyear Tire & Rubber company has introduced a new natural rubber procurement policy in order to promote a long-term, sustainable natural rubber supply chain. Such a step on the company’s part will help address a lot of environmental issues such as deforestation, land grabbing, and human rights in the areas of the world where natural rubber is produced. The company hopes, with the help of this strategy, to get its suppliers to produce the necessary raw material rubber in a responsible and environment friendly way. At the same time, the company is also looking into ways to improve sustainability across the entire natural rubber supply chain. Goodyear is one of the members of the Tire Industry Project (TIP) which is made up of the world’s 11 major tire companies and is actively working towards the cause with the participation of key stakeholders, like automakers, rubber producers and civil society, to develop an industry platform for natural rubber sustainability.
The remaining section under "Environment" is available only in the 'Complete Report' on purchase.
Major Brands :
- Goodyear.
- Dunlop Tires.
- Kelly Tires.
- Debica.
- Fulda.
- Sava.
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TABLE OF CONTENTS
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References used in Goodyear SWOT & PESTLE Analysis Report
1. Goodyear 2019 Annual Report - https://corporate.goodyear.com/documents/annualreports/2019-annual-report.pdf
2. Goodyear 2020 Annual Report - https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_GT_2020.pdf
3. Global industry tire volume to reach 2.7 billion units by 2022: https://www.smithers.com/resources/2017/dec/global-industry-tire-volume-to-reach-2-7-billion
4. Goodyear Strengthens Commitment To Sustainable Natural Rubber -https://corporate.goodyear.com/en-US/media/news/goodyear-strengthens-commitment-to-sustainable-natural-rubber.html
5. Goodyear Soybean Oil Technology Wins ‘Environmental Achievement Of The Year Award -https://corporate.goodyear.com/en-US/media/news/goodyear-soybean-oil-technology-wins-environmental-achievement-of-the-year-award.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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