Michelin case study
ENVIRONMENT ANALYSIS
Strategic Business Units
        Commercial vehicles         Passenger vehicles         Others
Original equipment         ingredient 1         Segment 2         Segment 3
Replacement         Segment 4         Segment 5         Segment 6
Key Success Factors
        Commercial vehicles         Passenger vehicles         Others
Original equipment         Price
Tire design
Tire writ of execution:
        intensity level
        Retreadability         Price
Tire design
Tire performance:
        Durability         Price
Tire performance:
        Quality
        Durability
Replacement         Price
Distribution service
Tire performance:
        Durability
        Retreadability         Price
Distribution service
Tire performance:
        Durability         Price
Distribution service
Commercial versus Passenger Vehicles: Comp atomic number 18d to passenger automobile tire, differences in tire performance, such as durability and retreadability can give a maker a considerable hawkish advantage. Truck tires are quintette or seven times the price of passenger car tire. Though demand for passenger and commercial tires is driven by different factors, there are important synergies between the segments. For example, advances do in large tire design were often transferred to little tires. In addition, many larger retailers would only buy from manufacturers which provided a full range of tires. Michelin Had a product range over 3300 tires covering tire of all categories.
Original equipment versus stand-in: The Original equipment market typically carried low margins due to gain the larger ledger orders. There are substantial geographical differences among original and replacement tire market. Replacement tires are generally sold through wholesales and related distribution channels can be competitive advantage. As in the OE market the purchase of truck tires in the RE market is made on technical criteria quite an than on brand image.
PORTER ANALYSIS of TIRE INDUSTRY (Michelin)
entrée Barriers
Entry barriers are economic and technological forces that prevent outside firms from competing in an industry. Entry barriers depend on technological and commercial relationships within the industry. The about important barriers to entry are cost advantages, product differentiation, vex to distribution channels, and miscellaneous barriers such as patents...
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