My PaperTire Companies & Rubber
Fabian D. Benson
Instructor: Sharif Muhammad
BUS620: Managerial Marketing
21 May 2012
Michelin North America is the world’s number one seller in commercial and heavy truck tires. Michelin North America has been around (in America) since 1907. It was founded in 1888 by Andre and Edouard Michelin brothers from France. Throughout the years this company has been in some stiff competition; like all companies go through that produce a certain product that is vital to the needs of companies, businesses, and individual needs. The competition has been Firestone, Bridgestone, and Goodyear. Although Michelin tires are by far the better product in the tire business out of the three brands, now that the economy is at one of the worse points ever; individuals are looking for the least expensive brand and product. When you have the best product it normally means you have the best technology, equipment to make the product, masterminds behind the ideas, and best goods and services. Along with being the best there is a high cost. Over the years Michelins tire prices have gone up with the cost of rubber. There are two types of rubber that Michelin uses: 1) Natural Rubber and 2) Synthetic Rubber. Synthetic Rubber is the cheapest rubber and the natural rubber is the most expensive.
Rubber is a material from latex sap trees that is vulcanized and used in various products; it is the most important piece that goes into a tire. When looking at rubber from a macro trend analysis, which is according to Mullins and Walker, “can be divided into six major components: demographic, sociocultural, economic, technological, regulatory, and natural environment. The key question marketing managers and strategist must ask in each of these arenas is what trends are out there that are influencing demand in the market of interest, whether favorable or unfavorable.” (Mullins and Walker p74) From a demographic stand point China is on the verge of gaining...