The Michelin group is a global manufacturer of tires dimensioned on Euro, and headquartered in Paris. It is a multinational, whose head office is in Clermont-Ferrand in France. With 20% of the worldwide market, Michelin is the world leader in the tire industry. Its net sales in 2006 rose to 16.4 billion Euros.
Established in 19 countries, the group employs approximately 130,000 employees including 40,000 researchers in the R&D departments in Europe, in the United States and in Japan including 31,000 in France. The products of the group are mainly marketed under the brands of Michelin, BFGoodrich, Kleber, Uniroyal and TaurusImplante.
The group has 2 distribution networks integrated of tires (Euromaster and IPC). Among its many inventions, there is the dismountable tire, the railway tire, tires which have been suitably designed to "go green" as it reduces fuel consumption by offering less resistance to the advance of the vehicles.
Michelin publishes also a popular series of road maps and the famous Michelin guide. Performance and responsibility constitute the hallmarks of sustainable development of the Michelin Group, based on the will of practical application of the five fundamental values of the group: its respect for the customers; its respect for the people; its respect for the shareholders and its respect for the environment.
Essential mission of the group is to contribute to the progress of the mobility of goods and people by facilitating the freedom, security, efficiency, and also the pleasure of travel. To do this, Michelin relies on its ability to innovate, the quality of its services, as well as the strength of its brands.
To boost sales, Michelin juggles its sub-brands; a strategy that allows it to enter new markets without undermining its reputation. Every minute, Michelin sells 300 tires in the world. But only half of them are named after the famous brand.
The strategy led by Michelin might seem illogical, but it's just the opposite. It allowed Clermont to finally become a great American tire brand. It spread slowly in Europe and is the basis for the competitive nature of the markets in Latin America and China. The hidden face of Bibendum, has, in fact been the group's major growth asset for seven years. Whatever the brand, all the tires are manufactured in the 80 Michelin factories in the world.
Michelin has continued in the market by the field of innovation from the very first truck tires benefiting from technological advances. The company has confirmed the importance it attaches to the tires with very low rolling resistance, a key factor to reduce the fuel consumption of vehicles and thereby reducing emissions of carbon dioxide.
The Michelin Group's growth strategy focused on markets that had the potential to sustain the growth making Michelin more profitable. Michelin is also seen to grow simultaneously on technology, innovation, marketing and services: values and territories where its jurisdiction is clearly recognized by its customers.
In a highly competitive market, the group is optimizing its industrial and logistics , expanding its capabilities in emerging and in developed markets accelerating throughout its efficiency to ensure a sustainable competitiveness.
Tags: tires, Michelin, strategic positioning, strategy, marketing,
[...] The other firm Clermont-Ferrand sells Liberator, or Medalist Cavalier in the United States, Siamtyre in Cambodia, Icollantas in Latin America, Stomil-Olsztyn in Poland and so on. Even more surprising is that when all manufacturers are concentrating their efforts on an increasingly tightened portfolio of brands, Michelin moves from one continent to another. Thus the Chinese Warrior will attack the United States, and the Japanese Riken has long been established in the French chain of stores. Michelin, Bridgestone and Goodyear share more than 60% of the global tire market. [...]
[...] Group Michelin introduced BF Goodrich in Europe, which has won of the high-end market in three years, while Kleber occupies the mid-range segment. With BF Goodrich and Michelin, market share of the group was fivefold in three years. In addition, there are national brands acquired by Michelin such as Icollantas Colombia, or Kormoran in Poland. Their local notoriety acts as a provisional springboard. The range of car accessories includes Michelin's enriched wiper blades for high performance cars and trucks, "biodegradable" cleaning products, etc. [...]
[...] Initially, the small car market in China was very elitist. The high end represented one quarter, a considerable proportion which makes it a prime target for Michelin. It now owns 25%. However, in recent years, the car has been democratized. In the space of five years kilometers of highways lined gardens have sprung up in the Chinese landscape. At the high speeds possible now, the old tires explode. Governments are pushing strongly for the use of radial tires, a Michelin invention. [...]
[...] Thus, for the full year 2007, given the proper guidance of demand, average cost of raw materials will be higher in the second half than the first. Michelin confirms that 2007 should register a significant improvement compared to the previous year. The operating margin before non-recurring items may approach that of the first half. [...]
[...] ⎫ It is the partner of all manufacturers, because it is present in all distribution channels and expanding its outlook offering innovative services: assistance, on-site services. ⎫ It advises and assists drivers with maps and guides, and digital services to support mobility. Performance Tuning Targeted growth: Michelin focuses primarily on the most technical products, and services with high added value to value at fair price quality and innovation that characterize its offerings. An industrial strategy dynamics: ⎫ Ensure a solid and profitable presence in Western Europe and North America. [...]
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