Goodyear Tire and Rubber Company

The Goodyear release and Rubber Company was founded by Frank Seiberling in 1898 on the niggling Cuyahoga River in Akron Ohio. He borrowed thirty five hundred dollars from his brother-in-law to start the smart set. The lodge was named after Charles Goodyear who discovered the rubber vul fireization process in 1839. The company started to build their first factory in 1902 in Akron. In 1903 capital of Minnesota Litchfield, a factory manager received a patent on the tubeless cloy. In 1904 the company became a leader in automobile, carriage, and wheel tyres.In 1909, the company became involved in fashioning airplane fag outs. Goodyear employs 73,000 passel in 22 countries and operates 53 facilities globally. Goodyear Tire and Rubber Companys mission statement is To increase the value of our brands for e rattlingone with grocery driven innovation, delivering the highest tincture tires, related products and services, for our customers and consumers. Strengths Goodyear has evolved as a leader in tire manufacturing and retreading crosswise the globe.The company is the third largest tire company in the ground with tax surpassing twenty one thousand million dollars. Goodyear is the best-selling tire in uniting America. Goodyear has very strong growth potential in all martplaces. This is a positive strength because competition is fierce and there is no agency for error in the tire business due to the low kale margins on tires. Goodyear remains very profit open despite competition and that has Goodyear in a strong put down for future plans and innovations. Goodyear has a strong fluidity slip in the market.In the last couple of years Goodyear has locomote their position and had strong revenue streams to bolster their short and long verge goals. Over the first three months of 2013 Goodyears revue was at a record 5. 5 billion dollars. Goodyear managed to achieve this even when raw materials and weaker withdraw was present. This demonstrates that Goodyear is financially sound, beating out competition to remain on abstract of tire industry and also proves its positive leadership and goals argon on target in todays market. Weakness One of Goodyears weaknesses is Debit.While Goodyear is take c atomic number 18ing a rise in revenue and earnings they unflurried carry a large debit from recent years. On April 19th, 2012, Goodyear Tire and Rubber Company announced that it has completed a refinancing box of its U. S. credit facilities. These changes include increasing the companys existing 1. 5 billion dollar existing revolving credit to two billion dollars and the adulthood date has been increased to 2017. The companys pre-existing 1. 2 billion dollar loan was extended until 2019. This is good news for Goodyear simply still leaves them with a lot of debit to reduce in the future.They should be able to reduce this debit with the strong earning they are making and with new introductions of tires advance to market at this time. anoth er(prenominal) weakness of Goodyear is weaker overseas demand. As to the highest degree of Europe is in a recession and many countries present difficult unemployment, tire sales are down. This not just a business concern for Goodyear however for all tire manufactures. Goodyear must analyze their overseas market strategy and take new measures to improve sales and remain profitable. one time a strategy can be put in legislate to remain a strong contender in Europe, Goodyear volition see positive gains once again.Goodyear can minimize losses by bring down inventory and plant operation cost to make it more cost-efficient than ever to keep their presence and name recognition at the knife edge in the tire industry. Opportunities Goodyear has many opportunities to expand and gain market make out worldwide. The Asian market is growing leaps and bounds and more people are able to purchase vehicles than ever before. The opportunities in these markets are quite great, and Goodyea r will be there. With a real global strategy, including manufacturing plants overseas, Goodyear is in a solid position with a large market presence already.Goodyear realizes the expanding market in Asia and is attacking on all sides with marketing and rebate campaigns to capitalize on the growth that is there for the taking. If Goodyear stays aggressive, they will surely reap the benefits. Another opportunity for Goodyear has been their new innovation centers in Akron Ohio and Colmer-Luxembourg. These new centers are ontogeny new tires that are being highly praised and wanted, like the new Goodyear sanction fuel Max tire that has 27 % less rolling immunity than conventional tires. The new Ultra grip 8 has more and tenia power than any tire on the market.With these new innovations and slim line operational costs, Goodyear is poised to be a market leader and very possibly will move up from the number three position they currently hold, and with the way the company is being run at this point, that is a definite possibility. Threats The highly private-enterprise(a) market is a big bane to Goodyear on all accounts. Bridgestone is the largest tire and rubber company in the world with sales over 35 billion. Michelin Tire Company is the second largest tire company in the world and both of these companies are threats to Goodyear in coal size and operation.There are other tire manufacturers, but these two are Goodyears biggest threats today. These large companies have great leadership and facilities to have the positions in the world market that they do and are very competitive in nature. These companies can displace prices to gain market share without making money for a short time and cut Goodyears market down, affecting the profits at Goodyear. Has this been done? Well nobody is pointing fingers, but there have been some fierce tire sales to get hold of increased market sales. Other threats that Goodyear faces are the demoralise cost tire manufactures.Other leading tire manufactures are selling tires at lower prices to gain a foothold in the market. These tires are good tires, but may lack the quality and reliability of a Goodyear tire. However with a tight economy, people sometimes will go with a cheaper tire to save money even if the tire will not give them the mileage and quality of a Goodyear. These companies can affect the over market share and profit at Goodyear. At a time when things are tough, people may choose these lower cost tires over Goodyears product, but Goodyear also has lower cost tires on the market to flake this, such as Dunlop and Kelly-Springfield brands.Summary Goodyear Tire and Rubber Company can capitalize in any market for tires, from high performance tires to lower priced economical tires. Goodyear has strong liquidity, multiple manufacturing plants and retreading facilities around the globe to compete in a very competitive market and has done well in the last couple of years in reducing operational costs an d offering tire rebates, to place them in a great position for future growth. If Goodyear holds to its mission statement of delivering high quality tires at a great value, Goodyear will continue to prosper.ReferencesGoodyear Corporate website (2012). Retrieved from http//www.goodyear.com/corporate/about/Cars Direct, (2009, dire 17). Retrieved from http//www.carsdirect.com/car-repair/the-7-best-tire- companies-out-there Ranker, (2012), Retrieved from http//www.ranker.com/list/world_s-top-10-tire-manufacturers-by-2010-revenue/micksgarage TR & W, (2010) Retrieved from http//www.tiresrimsandwheels.com/top-tire-manufacturers/ Market Research.com. (2009, December, 31) Retrieved from http//www.marketresearch.com/map/prod/2532908.htmlConsumer reports, (2012, April), Retrieved from http//www.consumerreports.org/cro/tires/buying-guide.htm Event truncated of Q1 2012 Goodyear Tire & Rubber Earnings Conference Call Final plum Disclosure Wire (2012, April). Quarterly Earnings Reports. Retriev ed from Database Points of View Reference focalise