Goodyear tyres case study. In early 1992, the Goodyear Tire and Rubber Company decided to reconsider the offer from Sears to sell Goodyear's Eagle brand tires.

SWOT Analysis

Strengths

• High Market share in the US.
• Big global market, with 42% revenue generated from global sales.    
• Well Established brand name.
•    Market share leader in North and South America.

Weaknesses

• Plunge global sales.
• Loss market share by 3.2%
• Second to Groupe Michelin in the global market share.

Opportunities

• Market penetration in countries such as China, India, and Russia.
•    Better distribution channels allows for greater sales to a wider market. Allows for better brand recognition.

Threats

• High competition.

3. Feasible Solutions

1. Reconsidering the offer made by Sears and selling only Goodyear Eagle brand passenger car tires through Sears.

2. Not to accept the offer made by Sears, instead continue selling its tires through the franchised dealers.

Management needs to analyze and match each alternative identified with the uncertainties existing in the environment and assigns quantitative value to the outcome associated with each match.

        Based on the case, Goodyear is left with two choices, which are either to accept the proposal from Sears, or to decline it. Thus, upon analyzing the case, we need to recognize the advantages and disadvantages each of the decision.

4. Selected Solution

Considering all the factors and looking at the various statistical figures Goodyear should make a reconsideration and sell its Eagle brand of tires

through Sears.

Advantages of considering this offer are as

1. The demand for the replacement tires and sale through Sears is quite large (2 million) and if sears would carry Goodyear tires customers would prefer Goodyear tires as it is one of the top brands in the replacement tire segment and offered by sears.

2. Goodyear will have promotion advantage, since Sears is one of the well-known hardware stores, it would not have to spend a huge amount of money for promoting its brands of tires.

3. Sears has a large customer base. Goodyear can easily capture the sears customers and improve its sales.

Although there might be some Disadvantages:

1.Goodyear will require a significant change in the long-standing distribution policy and could create conflict with the franchise dealers.

2· Goodyear might be forced to follow Sears’s specification for tire manufacturing.

3. Uncertainty of customer preference could be a concern since some buyers would still prefer the same product at the time of replacement.

4· Accepting the Sears offer could lower down the tire sales of company-owned Goodyear Auto Service centers.

5.Goodyear will have more competition in regards to the price and preference as Sears carries a huge product line from different manufactures.

In this case, Goodyear would partner with Sears, allowing it to carry all its Eagle brand of tires. This would enhance Goodyear’s sales and minimize its cost, as the cost of promotion for the Eagle brand would be borne by Sears. Thus, Goodyear could enhance its promotional strategy through advertisement such as television, auto racing from the additional savings, and further promote the rest of the line of products.

        In addition to that, Goodyear could have its own personal dealers, to help it in selling and marketing the other 11 products. This can be done by Goodyear, or franchised to franchisees willing to carry the products.

V. Conclusion

From the case, it is clear to see that Goodyear was suffering from loss in market share and profits, thus it is essential that the decision made be executed to ensure that Goodyear would regain its competitive advantage, regain its market share, and most importantly, turn its losses into profits. Although the decision would upset the franchise dealers and some might carry other brands in addition to that of Goodyear. But overall market share and the profits of the company would increase.