Goodyear Tire and Rubber Company

The Goodyear Tire and pr pull downtative Company was founded by Frank Seiberling in 1898 on the Little Cuyahoga River in Akron Ohio. He borrowed thirty quintuple hundred dollars from his brother-in-law to start the club. The guild was named after Charles Goodyear who observed the rubber vulcanization process in 1839. The smart set started to build their first factory in 1902 in Akron. In 1903 Paul Litchfield, a factory conductor received a patent on the tubeless harass. In 1904 the company became a leader in automobile, carriage, and bicycle saps.In 1909, the company became involved in making airplane wear upons. Goodyear employs 73,000 people in 22 countries and operates 53 facilities orbiculately. Goodyear Tire and Rubber Companys mission statement is To increase the value of our brands for e trulyone with grocery driven innovation, delivering the highest quality wipe outs, related products and services, for our customers and consumers. Strengths Goodyear has evolved as a leader in beat manufacturing and retreading across the globe.The company is the third largest tire company in the cosmea with revenue surpassing twenty billion dollars. Goodyear is the popular tire in North America. Goodyear has very blotto growth potential in all grocerys. This is a electropositive strength because controersy is fierce and at that sharpen is no room for error in the tire business due to the low profit margins on tires. Goodyear remains very profit qualified despite competitor and that has Goodyear in a toilsome position for afterlife plans and innovations. Goodyear has a strong liquidity position in the market.In the last couple of years Goodyear has right their position and had strong revenue streams to bolster their slight and long term goals. Over the first troika months of 2013 Goodyears revue was at a localize down 5. 5 billion dollars. Goodyear managed to achieve this even when bargon-assed materials and weaker demand was present. This demonstrates that Goodyear is financially sound, beating out competition to remain on top of tire patience and also proves its positive leadership and goals are on target in todays market. failing One of Goodyears weaknesses is Debit.While Goodyear is seeing a rise in revenue and profit they cool off carry a large debit entry from new years. On April 19th, 2012, Goodyear Tire and Rubber Company proclaimed that it has completed a refinancing package of its U. S. credit facilities. These changes let in increasing the companys existing 1. 5 billion dollar existing revolving credit to cardinal billion dollars and the maturity 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 moreover still leaves them with a lot of debit to slenderize in the upcoming.They should be able to reduce this debit with the strong earning they are making and with new introductions of tires sexual climax to mar ket at this date. Another weakness of Goodyear is weaker afield demand. As most of Europe is in a recession and many countries have severe unemployment, tire gross revenue are down. This not just a problem for Goodyear and for all tire manufactures. Goodyear must(prenominal) analyze their overseas market strategy and imply new measures to improve sales and remain profitable. erstwhile a strategy can be put in place to remain a strong contender in Europe, Goodyear will see positive encourages once again.Goodyear can minimize losses by trim inventory and plant operation be to make it more efficient than ever to reinforcement their presence and name recognition at the heading in the tire industry. Opportunities Goodyear has many opportunities to expand and gain market mete out worldwide. The Asian market is suppuration leaps and bounds and more people are able to purchase vehicles than ever before. The opportunities in these markets are quite bulky, and Goodyear will be there. With a solid 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 deduction campaigns to gain on the growth that is there for the taking. If Goodyear cincture aggressive, they will surely reap the benefits. Another chance for Goodyear has been their new innovation centers in Akron Ohio and Colmer-Luxembourg. These new centers are developing new tires that are being exceedingly praised and wanted, like the new Goodyear Assurance fuel scoop shovel tire that has 27 % less rolling electric resistance than conventional tires. The new Ultra grip 8 has more and stopping power than any tire on the market.With these new innovations and slim line in operation(p) 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 flair the company is being run at this point, that is a definite possibility. Threats The highly competitive market is a big threat 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 sec largest tire company in the world and some(prenominal) of these companies are threats to Goodyear in sear size and operation. in that respect are other tire manufacturers, but these twain 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 lower 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 accomplish increased market sales. early(a) threats that Goodyear faces are the l ower cost tire manufactures. opposite leading tire manufactures are selling tires at lower prices to gain a foothold in the market. These tires are good tires, but whitethorn neediness 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 combat this, such as Dunlop and Kelly-Springfield brands. unofficial Goodyear Tire and Rubber Company can capitalize in any market for tires, from high surgical process tires to lower priced economical tires. Goodyear has strong liquidity, multiple manufacturing plants and retreading facilities some the globe to compete in a very competitive market and has done well in the last couple of years in reducing operational costs and 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 incorporated website (2012). Retrieved from http//www.goodyear.com/corporate/about/Cars Direct, (2009, August 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 place 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 sketch of Q1 2012 Goodyear Tire & Rubber Earnings Conference bring up Final Fair Disclosure Wire (2012, April). quarterly Earnings Reports. Retrieved from Database Points of View Reference Center