Established for over 100 years, Michelin is present on all continents, from China to Brazil passing through the United States, Germany and Russia. Michelin manufactures tires for automobiles, aircraft, motorcycles, heavy equipment and so on in over 170 countries. It employs 125,000 employees worldwide.
In 2005, turnover amounted to 15.59 billion euros for a production of 197 million tires in 69 locations, across 19 countries and 20 million maps and printed guides. Michelin consists of nine service groups: purchasing, auditing, finance, information systems, communications, legal, personnel, and supply chain management.
Innovation is the main criterion of Michelin since its establishment and with innovation comes great responsibility. With 4000 researchers on three continents and a budget representing 4.6% of sales, its research & development group is the world's number one in this field. Michelin has proven its skill that enables it to establish strategic partnerships with manufacturers and industrialists to have an additional knowledge to be competent and effective at all levels.
Michelin's goal is not only to support markets, but also to evolve innovative services such as One Way Michelin, , retreading, or the overall management of the tires. The sources of major technological breakthroughs are radial tire, the Green tire branded with the X symbol, indicative of sustainable technology. New technologies have been upgraded from time to time.
Michelin is committed to excellence in design, manufacturing efficiency, quality and customer satisfaction. Michel Rollier has been appointed managing Partner since May 27, 2006.
We will see what Michelin must guarantee to achieve its goals in 2010. Founded in 1832 in Clermont-Ferrand, Michelin has carried the name since 1889. Managed by over four generations, the group is world's number one tire but also a force to be reckoned with in the sector for European maps.The group is also present in sectors such as extensive guides and digital services to assist mobility. For consumers, Michelin is one of the most popular brands in the world and is known worldwide.
The group now wants to offer its customers more quality and performance. Innovation is the key for the development of this brand. Michelin has a budget of 565 million euros for R&D and 4000 researchers on three continents. With this significant investment in research, Michelin is constantly improving its products, developing bold solutions and thereby transforms its markets.
It is through a portfolio of strong and promising projects that improve the mobility of people and goods that Michelin holds a place as important and advance in the tire market. The trade for a company is subjective to the skill of its workforce. The members of the company should possess specific skills for the development of the group, i.e., what we do, what we can do and what can be limited for the development of the company.
The main business of the Michelin Group is expansion in operations, and for this it has eight product lines. The Group is the world's number one brand for tires.The tire is the flagship product of the group but, this is not the only product sector that Michelin operates in , it is also positioned in sectors of tour guides, maps, online mapping and so on.
Tags: Michelin, United States, Germany and Russia, purchasing, auditing, finance, information systems, communication, additional knowledge, innovation, technological breakthroughs, research & development, Clermont-Ferrand
[...] - "Increasing corporate value maximizes profitability of our operations and our investments" to ensure increased profitability in the long term, Michelin is currently a development strategy focused on segments with high added value and high technology .The product line-Tourism-Van, for example, has built a strategy to win several high-end segments (high- performance tires, four wheeler vehicles, winter tires) and emerging markets in Asia. In addition, Michelin has pledged in recent years in Europe and the United States, to improve its competitiveness. [...]
[...] Michelin has announced net sales of 4.1 billion euros in Q at current exchange rates, but increase at constant exchange rates).During the first quarter of 2008, Michelin has evolved into an environment that is less buoyant than expected. Most tires in mature markets were withdrawn, with the exception of original truck tires in Europe. Faced with a decline in orders related to the economic crisis, Michelin is ready to adapt its investments and focus on innovation and development opportunities in emerging countries to overcome this difficult period. [...]
[...] The group will progress in order to compensate inflation of the external costs and thus anticipate the impact of the crisis although commodity prices have fallen.This partly explains the low prediction for Michelin in 2009. Michelin shares: Michelin shares have increased in the short term, but declined over the long term. B. Activities portfolio 1. The sale and distribution of tires The sale and distribution of tires account the tires for passenger cars, light trucks ( of sales) and heavy trucks ( 38.4 %).The group has two integrated distribution networks of tires (Euromaster and TCI) comes from other sectors or niches (specialty tires): Sale of specialty tires for agricultural machinery and civil engineering, motorbikes and aircraft Derivatives In addition, Michelin sells maps and tourist guides (leading provider in Europe), provides digital mobility assistance on the road (ViaMichelin), and Michelin Lifestyle products (accessories for automobiles and bicycles, collectibles, etc). [...]
[...] Strategic business area: Tires Benefits Disadvantages Quality of the radial tire Little adaptation to local for V.I markets tires Success of the radial tire Higher cost of radial tire for V.I in China Innovation Branding Ability to pass on higher prices on MP Width adjustment range Opportunities Threats Development of the tire Joint venture market of commercial loss of product quality?(Audit vehicles in emerging markets control) Technicality of Cost of raw materials = increasingly sophisticated, real 24% of its total sales in 2005 need for specialty tires Uncertain economic crisis Asia: 1/3 the volume of worldwide sales in 2005 Economic Liberalization in India India: future major player in the global economy III.Strategic Analysis For PESTEL, we chose to do a general analysis since the environment is essentially the same for both major SBAs. [...]
[...] After analyzing the different types of consumers, Michelin has been able to identify the following findings: buyers of high-performance tires are more masculine than the average consumer, their annual mileage is higher and market demand on this segment (synonymous with quality and durability) for a brand is strong. An upscale positioning strengthened by the creation of "top end" products. Michelin launched in March the Pilot range, which is available in three products: Primacy,Sport and Exalto.This range introduces new names for Michelin which earlier used to call its products through acronyms.The goal is simple: better memory retention. [...]
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