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Analysis of strategic activities of the group of manufacture of Michelin tires, and recommendations

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  1. View
  2. The Audi society
  3. SWOT analysis
    1. External Analysis
    2. Internal Analysis
  4. Competitor Analysis
  5. Communication strategy for the Audi Q7
    1. Communication media
    2. Non-media communication
    3. Control of the communication strategy
  6. Conclusion

In the first part of this study, the different areas of strategic business (DAS) was identified. A DAS is a set of activities that use the same set of resources and skills. Each DAS is confronted with specific competitors, specific technological developments, specific developments in consumption patterns and thus specific rents. It therefore needs to develop a specific strategy.

Thus, each activity of each tire based on the same suppliers, but with specific technological developments, specific developments in consumption patterns and specific annuities was separated. Examples of DAS can be given in the tourism and trucks sector. This study will try to determine the sensitivity to differentiation and market volume compared to the types of market. The tourism and vans segment occupies 51.1% of the worldwide demand for tires. So, this is a market based on volume / quantity, and the strategy is the cost / volume.

For Michelin, a key raw material in production of tire rubber and internal logistics is not a step in the creation of value itself. However, it is a way to reduce production costs, which can lead to a FCS on theDAS.

Michelin increases productivity and flexibility and increases its production capacity to meet strong demand from emerging markets, so this is a major activity in creating value. The reputation of the company in this segment is also due to its good geographical coverage of its implementation and monitoring of the distribution chain, so this is a creative activity of high value.

This step allows Michelin to come forward and continue to develop to the fullest. It is therefore an activity that creates value for DAS. The tire Clermont currently has 18% market share and it has in particular the quality of its services. Indeed, when buying a Michelin segment "passenger and light truck" the service is included.

Michelin is as a number of high-tech tires in this segment. The invention of the radial by the group is a major element of superiority in this market, and this awareness has gradually strengthened by the many innovations of Michelin, such as the Michelin Pax System and Energy.Thus on can see that innovation for this segment is a key factor of success.So this is a fundamental activity for DAS.

This is the acquisition of resources for production. This is for the company a way to reduce production costs by acquiring the raw material at an optimal price. Thus, one can say that the two key activities are the productionand development of technology. While other activities such asoutbound logistics, services or infrastructure of the company, are also creating value.

The quality of the group's product is widely recognized by professionals in the road transport sector (which are particularly attentive to the prestige of a brand widely recognized in the profession), and currently about 500,000 businesses trust Michelin. In Asia, Michelin is developing its solutions approach to Japan, where a troubleshooting 24h/7d center was created.

In contrast to China, the increase in group sales was dampened by the sudden introduction of legislation on vehicle overloading. Finally, in India, where markets for carriers and distribution is still very fragmented, Michelin began the commercialization of radial tires in partnership with Apollo Tyres.

Tags: Michelin, case study, Analysis of strategic activities

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