Michelin has been the market leader for tyres. Michelin equips vehicles like cars, motorcycles, aircrafts, etc. with tyres. Michelin also brings solutions for each different usage of tyres, which allows the vehicle to give optimum performance.
The company constantly innovates in order to improve safety, comfort and quality. All this is done with the environment in the background i.e. it tries to be eco-friendly. For example, tyres developed for agricultural machinery such as tractors improve machine productivity and serve to limit their impact on the soil.
The most impressive products are Michelin tyres for aviation. These are tyres that are specially designed to carry a load exceeding several hundred tons, and travel at the speed of a sports car. During take-off, these tyres must withstand a speed of about 360 km/h, with each tyre having to bear a load of 30 tons or more. They also have to withstand extreme temperatures of over 100°C on the track, and -45°C inside the cargo, during flight. New technologies in making tyres now contribute to a reduction in maintenance costs and help save fuel. The Michelin team equips the full range of Airbus with their tyres.
Michelin is also present in the area of maps and guides. Michelin Travel also provides interactive digital products. For over 100 years, Michelin offers these services. Today, even if the tires were the first activity, maps and guides are part of the group. Each year the Michelin Guide, the standard for food and accommodation has sold 800 000 copies, 30% of it in France. In terms of maps, Michelin offers a comprehensive range of products: maps of national, regional, local,road atlas. More than 9 million cards are sold in France each year to consumers.
In general, firms are tempted to develop alternative products on the market. This request can be caused by the quality / price of competing products, the potential switching costs, the comparative profitability of both products.
A good substitute for Michelin would, for example be to engage in the manufacture of ultra high performance race cars like a formula one car ,because it already has an image synonymous with excellence, high quality and high performance.
Finally, sales of Michelin are not always linear: The Michelin tires available in stores depend on seasonal factors, in fact there are winter tires and summer tires. Beyond this, Michelin's sales are more likely in early spring because the tires were tested by winter.
The Michelin Group operates in 19 countries with 64 production sites worldwide and employs 120,000 employees worldwide. It has 20% market share in the tire industry and exports 60% of its production. Michelin tires are sold in over 170 countries, so the presence of production sites on each continent is crucial.
Thus, the majority of sites are in Western Europe and North America. In 1971, Michelin opened its first plant in North America, Canada, and since they bought the Uniroyal-Goodrich Tire Group for 8.5 billion francs, a former competitor of the group, it has allowed them to penetrate the American more easily.
Michelin also produces its own rubber and has 13 production sites of natural rubber, including three in Brazil and 10 in Africa. Michelin relies on several technology centers located on three continents, Europe, America and Asia.
Tags : Michelin Tires, success of the company, company strategy and innovation
[...] The franchisee is in a secure position. III) Behavior 1. Retail Advertising Michelin makes its advertising through multiple media. It mostly uses television ads, but also employs posters and billboards mostly in service stations and garages, as well as delivery trucks belonging to the company. Recently new media were targeted, because Michelin has done advertising campaigns online on websites such as MSN, Yahoo or AOL. Michelin awarded: The industrial campaign of 2008 was recognized for its strength, graphics, design, and clarity, and for its commitment to a long-term message. [...]
[...] MEF takes into account water consumption and energy, CO2 emissions and VOC (Volatile Organic Compounds), the generation and land- filling of waste per ton of tires produced. Compared to this, the objective is to reduce the MEF of 20% over 2005. The Group aims at a decrease of of its energy consumption of its CO2 emissions, a large reduction in solvent consumption to achieve a 25% reduction of VOC emissions and lowering of its non-recycled waste by which equates to a recovery rate above 90%. [...]
[...] The group enjoys the highest loyalty rate in the market instead. On the other hand, the entry of substitutes or alternatives on the market can be a threat to existing firms. Firms are tempted to develop alternative products on the market. This requirement may be caused by the quality / price of competing products, the possible transfer costs, and returns compared to two products. In the future Michelin might consider gradually replacing its maps with GPS - Vertical integration: Vertical integration refers to the fact that a company brings together the qualities of producing a type of goods or services at all levels, and therefore controls the entire production chain, from raw material to finished product. [...]
[...] In 1908 they invented the first combined tire for trucks and established a monopoly in this market. But it was the invention of the radial tire as we know it today, which allowed the company to expand significantly and can help it win new markets like the United States. The quality that Michelin wants to give its products is based on safety, durability, fuel economy and reducing CO 2 emissions. Each year the market develops many requirements and Michelin is committed to providing new and better solutions by being as responsive and innovative as possible. [...]
[...] There are also performance indicators such as MMV frequency rate and severity rate of accidents, the rate of customer satisfaction, loss of material, product quality and cost indicators of productivity - Government policy: Antitrust laws can do nothing against vertical integration when it achieves organic growth. If vertical integration creates mergers and limits competition, then the antitrust laws apply. On the other hand, Total, Michelin and Adidas are referred for fraud via Liechtenstein. The fraud was revealed in early 2008 in Germany which rebounded in France following articles in newspapers on March This fraud would cover more taxpayers and Michelin. [...]
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