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Aquatread launch
Group B3
SWOT Analysis
Chapter title
Strengths
Weaknesses
Brand equity
Low Pofitability
Loyal
independent
dealers
Channel
Leakage
Absence in
Market leaders in
certain
replacement tires
Distribution
channels
Strong inage
among priceconstrained and
commodity
buyers
Chapter title
Threats
Opportunities
Winter Olympics
Rapid
Skimming
Easy replication
of the technology
Patented
technology
Foreign
competitors
Decreasing
dealer bargain
First mover
Higher
advantage in wet
dependence on
traction tires
independent
dealers
Product Analysis
Points of
Parity
State of the art
Radials
Precision Handling
Points of
Differentiati
on
Safety (Lowest
stopping distance)
Innovative and
unique design
Longer Life
Market Analysis
Customer
Price Constrained Buyers, Value Oriented Buyers, Quality Buyers,
Commodity Buyers
Increasing Value-Oriented buyers
Decreasing Price-Oriented buyers
Stronger image among price constrained buyers and commodity
Cost
buyers
Increasing costs due to rise in oil prices
Lower Margin Consumer Power
Convenience
Good network of over 4400 stores
Independent stores and Manufacturer Outlets
Communication
Goodyear trains its dealers to deliver a uniform communication to its
customers
Replacement Industry
(million of
Growth
tyres)
(%)
137
-123
-10
144
17
152
6
Industry
Performance
160
140
120
100
80
60
40
20
0
1976
Year
1975
1980
1985
1991
GoodYear's
share in US
market (%)
14
14
15.5
15
GoodYear's GoodYear'
sale (million s Growth
of tyres)
(%)
19
-17
-10
22
30
23
2
GoodYears
Performance
Industry
GoodYear
1981
1986
1991
Industry
OEM (million Growth
of tyres)
(%)
50
37
-26
54
46
43
-20
Year
1975
1980
1985
1991
GoodYear's
share in US
market (%)
35
28
32
38
Industry
Performance
60
GoodYear's GoodYear'
sale (million s Growth
of tyres)
(%)
18
10
-41
17
67
16
-5
GoodYears
Performance
50
40
Industry
GoodYear
30
20
10
0
1976
1981
1986
1991
Number
Sales
of
Revenue
Outlets
(%)
Revenue from
Channel (1991 Revenue (million)
$8,600 millions)
/Outlet
4,400
50
4300
1.24
1,047
27
2322
2.81
600
688
1.45
--
15
1290
--
Reasons to launch
Aquatred
Brand-oriented
Prestige Buyers
Outlet-oriented
Comfortable
Conservatives
Selected Channel(s)
Current distribution channels of independent dealers, Goodyear-owned
stores & franchises.