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Analysis of Michelin's strategies and recommendations

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Acepublisher .
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documents in English
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case study
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40 pages
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  1. The internal analysis of Michelin
    1. The ethics of Michelin.
    2. Competitive financial, technical and commercial aspects
    3. Segmentation
    4. Portfolio of products and 4Ps of Michelin
    5. Strengths / Weaknesses of Michelin
  2. The external analysis of Michelin
    1. Microenvironment: Michelin's partners
    2. Market opportunities and threats by the PESTEL method
    3. Competitive analysis and Porter's five forces
  3. SWOT analysis
  4. Strategic decisions undertaken by Michelin on SBA
    1. Passenger Vehicles
    2. Heavy Load
    3. Specialty tires
    4. Other group activities

254% - this is the performance level of Michelin since March 2003; such high-flying results have enabled the company to emerge as the leader in a very competitive market where rivals such as Bridgestone and Goodyear are on the lookout for the slightest weakness of the French manufacturer. The second biggest tire manufacturer in the world behind Bridgestone in 2005, this multinational firm was created on May 28, 1889, by Jules Michelin, and has enjoyed a surge of growth to outpace its main competitors.

This company is one of the best bets for the French economy and the world in the same lines as Airbus. The strength of the family model is illustrated by its stock market listing in the Euronext exchange group. Headquartered in Clermont-Ferrand, Michelin has 74 production sites located in 19 countries, and has a commercial presence in 170 countries. The tires of the group are mainly marketed under the brand Michelin, BFGoodrich, Kleber, Uniroyal and TaurusImplante. The group also has two integrated distribution networks - Euromaster and TCI.

The firm represents about 20% of the tire market and the net sales for 2006 amounted to 16.4 billion euros. Beyond the financial aspect, the company employs more than 125,000 employees, including 31,000 in France. In addition to its extensive portfolio of brands to reach the mass market, Michelin also operates on the professional sector, in particular, with its range in civil engineering and offers its globally reputed maps and numerous guides. But the sector in which the group really stands out is in the growing number of innovations it offers, thanks to the 4000 novel ideas made available by researchers.

Profitability for shareholders, fuel economy, safety and environmental concern are the watchwords of this tremendously renowned venture. In a context of crisis in the automotive sector and a domestic market increasingly edging toward saturation, Michelin has to face all these difficulties to continue its global leadership. The company Michelin has developed a strategy based on five values that complement each other to be as competitive as possible and to enjoy competitive advantages over its main competitors. Their website also communicates about these values.

Firstly, we distinguish the respect of users and their tires. Indeed, to satisfy the desires of customers is the leverage of the company. This contributes to the advancement of sustainable mobility for its users by making travel even more secure, easier and more enjoyable. In order to advance mobility, Michelin helps bring more security, more performance and more driving pleasure. For the customer, choosing Michelin is perceived as an investment because it helps to save fuel and extends the life of the car and the tire, as it contributes more mileage per kilometer than the sub-branded tires.

The respect for people comes through a policy focused on non-governmental organizations and can demonstrate the ability of the company to exceed its direct economic interests.In effect, this allows Michelin to integrate into society while agreeing upon true citizenship and social development of its institutional image. The company develops international relations with all necessary stakeholders. In particular, in 2008, it paid 600000 euros for victims of earthquake in Sichuan province in China.This commitment also reinforces the links between Chinese employees and the group.


Tags: Michelin, Bridgestone and Goodyear, French economy, Euronext exchange group, non-governmental organizations

[...] Michelin employs 4,000 researchers and is the first company specializing in the tire in terms of research and development. Products. First, we must know that the Michelin brand is one of the most expensive one on the market, but the safety, durability and fuel economy seduce the consumer. As presented in the paper's website, on the outskirts of Clermont- Ferrand in Ladoux, the area is dedicated to the testing of tires. Some 3000 people are employed there.The area includes various circuits on different types of surfaces to study the behavior of the tires.Ladoux is not the only testing facility of the company and a second one is located in Almeria, Spain. [...]


[...] Externally: Opportunities and threats of Michelin After distinguishing the opportunities and threats in Michelin, the company must classify them according to their degrees of importance to prioritize the most important to retain. For each opportunity and threat, the company has to assess the probability of occurrence P 10) and gravity G effect. The same procedure is performed as above, the product P * G is obtained and we retain only the opportunities and threats that have the highest effects. Matrix of opportunities: Effect The effect Product Opportunities size of gravity * Respect of the environment Matrix of threats: Effect The effect Product Threats size of gravity * Time of Crisis Strong competition Cost of raw materials is rising and NB: the others are also important. [...]


[...] Competitive analysis and Porter's five competitive forces: The tire market, like many others, has undergone profound changes over the past two years because of globalization. The sector has experienced a great wave of consolidation. In of the major tire manufacturers of 1981 no longer existed as independent companies. Michelin, Bridgestone after the second world war, had represented of the world wide tire market. With two main competitors, Michelin is a group that sells more than one kind of tire globally market share). [...]

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