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Marketing strategy: Case of Michelin

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Founded in 1889, Michelin manufactures and distributes tires. It is also involved in additional activities, such as natural rubber production, publishing, travel related products, multimedia services, retreading and recycling. This is a private limited company.

The company was created as a family business, and is still run by a family member; Edouard Michelin. He is the manager of Michelin and maintains control of the company. His liability is unlimited because he is a limited partner with two others who have a right of scrutiny. The family holds 17% shares in the company.

The objective and purpose of the managers is first to maintain the spirit of a family associated with an image of quality and constant innovation. In addition, the company aims to become the undisputed leader in the global tire industry.

The essential mission of the group is to contribute to the advancement of mobility of goods and people, facilitating the freedom, security, efficiency and also the pleasure of travel. For this, Michelin relies on its ability to innovate, the quality of its products and services, as well as the strength of its brands.

A strategic activity, or DAS, in the terminology of corporate strategy, is defined as a subset of an organization to which it is possible to assign or remove resources independently and matches a specific combination of competitive advantages.

The group favors a differentiated targeting global strategy. Michelin's strategy is based primarily on innovation and cost reduction. Michelin led a global growth strategy, efficient, sustainable and focused based on technology and innovation of brands and services.

The Group focuses on growth markets with high added value, accelerating its development in emerging countries, increase efficiency and productivity. It is an operating margin of at least 10%, a significant cash flow, positive recurrent return on capital.

Tags: Michelin, French tire maker, marketing strategy

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