It is a multinational company whose headquarters are in Clermont-Ferrand in France. With a claim over 20% of the global tire market, it is the world's largest tire company. Its net sales amounted to 16.867 billion Euros in 2007, which positioned Michelin in second place behind Bridgestone ($ 29.7 billion in 2007), and before Goodyear. Michelin is established in 19 countries, employing 123 975 people which include 31000 employees in France.
The parent company, “Compagnie Generale des Etablissements Michelin”, is an SCA. The Groups companies outside France are headed by a holding company, “Compagnie Financière Michelin”, established in Granges-Paccot in the canton of Freiburg in Switzerland.
Among its many inventions, there is the detachable tire; the rail tire (pneurail), the radial shape that equips all actual tires, and a tire called "green" as it reduces fuel consumption by providing less resistance to advancing vehicles. Michelin also publishes a popular series of maps and the famous Michelin guide, which mentions many good restaurants, and is selling well even in Japan. In 2009, the factory celebrated the 100th edition of the Rouge Guide.
[...] In 1999, Francois Michelin left his post of manager, and his son Edouard succeeded him. In September, the simultaneous announcement of increasing quarterly profits, and a restructuring plan leading to 7500 job cuts, opened a controversy in France on the stock dismissals. In 2004, Michelin presented the Tweel concept, a revolutionary airless wheel. In 2005, Michelin partnered with Renault, the champion in Formula 1 racing, but announced its withdrawal from the competition at the end of the 2006 season because of disagreements with the FIA. [...]
[...] Decision makers: The men who decide and buy the product. Prescriber: mechanics, specialists. Opinion leader: famous pilots and drivers. Consumer organizations: Through their publications, they could inform and warn consumers through comparative testing, and information on product quality. (UFC Que Choisir) It is important to notice that Michelin ranks among the leading global brands and has an excellent reputation. Purchase process: With respect to the purchase process, tires are considered a reflecting purchase since they are common goods. Environmental analysis- the right context Let us analyze the company's environment. [...]
[...] - Products which are supporting the growth are large and high performance tires. Competitors Comparison Innovation to improve safety and Bridgestone comfort (Run on flat) Very focused on environment and safety Manufacture and use environmentally friendly tires Good Year Reduction of fuel consumption Improved traction and braking on wet ground. Reduction of noise level Innovates and invests a lot in research and development Continental Innovates (intelligent tire) Gives great importance to safety (communication and advice to the client) Good advertising campaign. [...]
[...] The main goal Michelin needs to strengthen the image and reputation of the company in the eyes of users and professionals, with a special emphasis on the company's mobility Problem to solve Michelin needs to manage its distancing from F1 with a strong communication on its new values of safety, economy and ecology Targets The Targets of Michelin are all the tire users; professionals and private users. Michelin needs to prevent and inform all the users, especially new young drivers Promises Michelin's promises are Innovation / Safety / Quality / Cost saving / Environment friendly Tone The communication tone must be sympathetic reassuring and professional. [...]
[...] Moreover customers are always looking for safer tires; more comfort and less driving noise. B. Place Michelin needs to accelerate its growth in areas with high potential for growth. Michelin has already accelerated its industrial and commercial growth in central and oriental Europe. Michelin has had to do so in order to serve the local demand with tires that were manufacture locally. Thus Michelin was able to increase its market share in these countries. C. Communication Michelin needs to become a major actor in environmental concerns. [...]
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