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Case Michelin

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case study
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  1. Introduction
  2. External analysis
    1. Industry Definition
    2. Analysis of economic forces affecting the industry (PESTEL)
    3. Industry Analysis: Porter's 5 Forces
    4. Industry segmentation
  3. Internal Analysis
    1. Defining the Enterprise
    2. Resource Analysis
    3. Skills Analysis
    4. Analysis Balance ScoreCard
    5. Analysis of corporate governance
  4. Final Diagnosis
    1. Reflecting on the situation of the company
    2. The possible development paths

Founded in 1889, the company Michelin has experienced tremendous growth. Developing in the first place, construction activity and agricultural equipment, manufacturing rubber bullets, the company has established itself as the world leader by developing its business portfolio.

Created by Edouard Michelin and his brother Andrew, the group is seen as both paternalistic and as a real source of employment. Development and innovations appear to be the two key elements of the business' success.

In addition, by expanding internationally, the group has established itself strongly in Europe and the USA. With its landmark, the famous Bibendum, Michelin promotes the company. Michelin, a French company, appears to be a model in the tire industry.

A problem arises today with the company: How to remain the unchallenged leader of the industry of the tires on a worldwide scale while preserving a family aspect?

In addition, the group develops in various strategies. For starters, it sets up an intensive internationalization strategy by positioning itself in geographic areas with high potential. Michelin is also developing a strategy based on innovation and a sustainable development policy.

Customer satisfaction is essential to the group, which is why innovation is one of its key drivers. The group has a very powerful research and development center that enables it to respond to consumer satisfaction. The company wants to continually meet the growing needs of the market.

The company had a turnover of 15,689 million euros in 2004. The Michelin group has 74 production sites in 18 countries with an annual production capacity of 180 million tires and 22 million maps and guides and 125,000 employees.

The global market for tires is governed by a high competitive intensity.In addition, it is clear that the European market for tire reaches saturation.

Currently, the market, it appears is very important for brands to have a good image for customers. The technological know-how is seen as a real opportunity and this represents a real barrier to entry for new entrants.

As for retreading (repair technique wheels), it is expanding the market. Its cost is much lower than replacement, so it is very important to locate in this area so as not to lose market share. Changes in consumption patterns, for example due to higher fuel prices push consumers to retread as this is a lot cheaper.

Finally, the radial technology has truly marked the event in the field of pneumatics. This technology is unparalleled in performance as a real key element of the market. It seems almost essential to have this technology to remain competitive.

Key factors in the market are the partnerships with manufacturers, making high performance tire, good relationship with auto manufacturers, distribution networks, high-tech (radial) and good image in the market.

Regarding the strengths of the company, it appears first and foremost as a patent radial technology that represents one of its key success factors. It is true that the group relies heavily on innovation with R & D and high performance.

Moreover the Michelin brand is a true symbol of performance and quality. Developing intensive strategies to integrate operators, the group owns 20% of PDM sector . In addition, these strategies have enabled it to acquire a large portfolio of activities.

Tags: Michelin, case study, leading tire manufacturer,

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