Founded in 1889, the company Michelin has experienced tremendous growth. Developing in the first place, construction activity and agricultural equipment, manufacturing rubber bullets, the company has established itself as the world leader by developing its business portfolio.
Created by Edouard Michelin and his brother Andrew, the group is seen as both paternalistic and as a real source of employment. Development and innovations appear to be the two key elements of the business' success.
In addition, by expanding internationally, the group has established itself strongly in Europe and the USA. With its landmark, the famous Bibendum, Michelin promotes the company. Michelin, a French company, appears to be a model in the tire industry.
A problem arises today with the company: How to remain the unchallenged leader of the industry of the tires on a worldwide scale while preserving a family aspect?
In addition, the group develops in various strategies. For starters, it sets up an intensive internationalization strategy by positioning itself in geographic areas with high potential. Michelin is also developing a strategy based on innovation and a sustainable development policy.
Customer satisfaction is essential to the group, which is why innovation is one of its key drivers. The group has a very powerful research and development center that enables it to respond to consumer satisfaction. The company wants to continually meet the growing needs of the market.
The company had a turnover of 15,689 million euros in 2004. The Michelin group has 74 production sites in 18 countries with an annual production capacity of 180 million tires and 22 million maps and guides and 125,000 employees.
The global market for tires is governed by a high competitive intensity.In addition, it is clear that the European market for tire reaches saturation.
Currently, the market, it appears is very important for brands to have a good image for customers. The technological know-how is seen as a real opportunity and this represents a real barrier to entry for new entrants.
As for retreading (repair technique wheels), it is expanding the market. Its cost is much lower than replacement, so it is very important to locate in this area so as not to lose market share. Changes in consumption patterns, for example due to higher fuel prices push consumers to retread as this is a lot cheaper.
Finally, the radial technology has truly marked the event in the field of pneumatics. This technology is unparalleled in performance as a real key element of the market. It seems almost essential to have this technology to remain competitive.
Key factors in the market are the partnerships with manufacturers, making high performance tire, good relationship with auto manufacturers, distribution networks, high-tech (radial) and good image in the market.
Regarding the strengths of the company, it appears first and foremost as a patent radial technology that represents one of its key success factors. It is true that the group relies heavily on innovation with R & D and high performance.
Moreover the Michelin brand is a true symbol of performance and quality. Developing intensive strategies to integrate operators, the group owns 20% of PDM sector . In addition, these strategies have enabled it to acquire a large portfolio of activities.
Tags: Michelin, case study, leading tire manufacturer,
[...] The barriers to entry are high, beSalesuse it is a job that requires expertise and technology. In the short term, there is no potential entrants to the market where the low pressure of the market players. NOTE: 0.5 / 5 Suppliers: Pressure from suppliers is medium within which Michelin was able to create a good relationship network by developing partnerships and exclusive contracts. However, vendors still have some control in the context where they are makers of the quantities purchased and contracts in place. [...]
[...] Michelin Introduction Created in 1889, Michelin has experienced tremendous growth. Developing in the first place, construction activity and agricultural equipment manufacturing rubber bullets, the company has established itself as the world leader in pneumatic expanding its business portfolio. Created by Edouard Michelin and his brother Andrew, the group is considered as both patronizing and as a real job provider. Development and innovations emerge as the two key elements to the success of the company. In addition, developing internationally, the group has established itself strongly in Europe and the USA. [...]
[...] Thus, we Salesn see that only Goodyear is in a very difficult position with an almost zero gearing. The debt of other companies rate is correct. For Bridgestone, Pirelli and Yokohama, banks will not hesitate to entrust their most important to cover in the long term are. This is not the Salesse of Michelin and Continental who opt for short-term debt. The FRNG does not cover working Salespital, so the Salessh is negative. [...]
[...] Customers have a strong pressure on companies under which they have a high purchasing power. Customers show where a specific need for flexibility to meet the best brands to the wishes of customers expectations. NOTE: 5/5 The state: Safety standards and pressure on pollution and recycling NOTE: 2/5 Appendix Table of the strengths and weaknesses of the company FORCES WEAKNESSES Patent : Radial technology Lack of communiSalestion Constant improvement of Multi-brand strategy, danger level technologies of cultural identity Michelin = symbol of quality and Legal Status : SSALES performance Danger at the unlimited liability of manager R & D is the best performing sector Inconsistency with the paternalism of the company (Uproar 1999) Colossal investment of sales) Multi-brand strategy Has ISO Side the SALESC 40 Strong position in the US and Europe Has strong distribution networks Partnership with automakers ( expanding its brand portfolio Acquisitions recognized brands in geographic areas with high potential New business development Horizontal integration strategy, upstream and downstream Massive expansion abroad 74 production sites in 18 countries 20% share of the tire market High annual production Salespacity Monitoring the activity of the company by the family (SSALES) Appendix The value chain Support activities: - Infrastructure: Specificity of legal status Good and responding to changing consumer expectations - Research and Development: R & D best performing sector Establishment of a sustainable development strategy ISO 10400 - Human Resource Management: Tracking training employees to retire participation for the benefit of managers deleting 7500 jobs in 1999 with an increase of 20% growth - Acquisitions: long-term contracts Possession of six farms (land) rubber The main activities: -logistics upstream upstream integration strategy (land acquisition) auto supply of the raw material requirements -Production: 75 production sites in 18 countries -marketing Sale: partnerships with manufacturers wide product portfolio global presence -logistics downstream downstream integration strategy (acquisitions) Partnership Development -Services: Recycling Michelin Euro Support Michelin Fleet solution Appendix 7 Analysis of the business portfolio of SBU 1 Civil Engineering Segment ATTRACTIVE Evaluation Weight Note Textual Points terms of growth is the most attractive segment ;revitalization thanks to the mining market l maturity maturity in this segment, R & D plays an essential role requirement government security and energy saving intensity this segment for the moment, we Salesn predict that in the long term provide liquidity through its high growth, high value-added differentiation differentiation with multiple innovations COMPETITIVENESS Evaluation Weight Note Textual Points turnover of the company differentiation trackers, good differentiation in the context where it makes him strong market share respond to terms of the economic changes situation (reopening of mines) l heritage tires in partnership with gear manufacturers (Salesterpillar) picture feats performed (the world's biggest tire) integration Segment Equipment agricultural ATTRACTIVE Evaluation Weight Note Textual Points the impact of the heat l maturity therefore apparent maturity needs Improved comfort and soil conservation intensity to generate profits differentiation innovation COMPETITIVENESS Evaluation Weight Note Textual Points tires differentiation with the tire XeoBib respond to tires with more comfort and changes preserving soils satisfying customer requirements l heritage Creating the tire XeoBib innovative Collaboration with hardware manufacturers and professionals integration Kleber And upstream integration (self-sufficiency) Segment aviation ATTRACTIVE Evaluation Weight Note Textual Points appliSalestion of pneumatic rate due to the difficulties of air travel. [...]
[...] Its advanced technology allows it to quickly establish itself as one of the undisputed market leaders. The trade group is currently the accompanist for the mobility of people and goods services. The company will gradually develop three types of strategies: - Upstream integration strategy (buying rubber land) - Downstream integration strategy (corporate redemption distribution) - Horizontal integration strategy (acquisition of competitors) In addition, the group develops under different strategies. For starters, it puts in place an intensive internationalization strategy by positioning on areas with strong potential. [...]
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