“Bridgestone: European Marketing Strategy”
1.0: Make an assessment of the competitive strategies that Michelin, Continental and Goodyear respectively may pursue to strengthen their European Market position.
2.0 Make an assessment of the alternative competitive strategies that Bridgestone can pursue to strengthen its European Market position.
3.0 Give a well-reasoned proposal for the criteria to be used by Bridgestone when choosing market (country) that requires a larger marketing effort (you can also include central and eastern Europe). Page 9-10
4.0 “Global localisation” (glocalisation) is a policy that each company has implemented successfully. Critically review the concept of glocalisation. Give examples for each company from the case. Page 10-12
Appendix I – Mckinsey/GE Matrix.
1.0 Make an assessment of the competitive strategies that Michelin, Continental and Goodyear respectively may pursue to strengthen their European Market position.
The success of a company’s competitive strategy depends on how it relates to its environment (Porter, 1980). This report discusses how Michelin, Continental and Goodyear relates environment, encompassing social as well as economic forces to increase their market in European market.
Bridgestone is one of the world’s largest manufacturers of tyres and hope to increase their company brand awareness within markets where they are less well known. However, to do this they have to compete with the market leaders within this sector such as Michelin, Continental and Goodyear. The competitive strategies of each respective industry to strengthen their European Market position are highlighted below:
Michelin is a French tyre manufacturer that has the highest percentage share at 32% within the European tyre market. Over 100,000 people work for this last industry. There are 67 factories spread throughout 13 different countries. Globally, it provides services within 170 countries. In terms of products, Michelin have a strong presence within the market as it manufactures 3,500 different types of tyres which give them a broad product range within that market. Furthermore, it also provides tourism services such as maps and guide books.
To strengthen Michelin’s European position, they should continue their adaptive approach to different markets, which has and will give them an opportunity to dominate markets on different continents of the world for example, Asia and America which is their largest market.
Michelins ability to adapt different tyres for different purposes such as aircraft tyres and earthmover tyres are how they have been able to apply their brand strategy in so many different ways. Michelin provide innovative solutions for a variety of different vehicles that need tyres. This is what differentiates themselves from their competitors as they have such a wide range of tyres in particular to offer, which is something that other companies cannot provide. To strengthen this particular area of their business they must make sure all of their work continues to be done efficiently as maintaining the Michelin brand name is essential at their stage.
To maintain their European market position, Michelins strategy has been to acquire MRF in the Philippines and also the Columbian manufacture Icollantas. This has lead to the expansion and growth of Michelin outside Europe however, increasing their economy of scale, cheaper labour costs and competitive prices.
Michelin is an example of a company that has used the acquiring of joint mergers to their advantage and to strengthen their current position they should maybe look at joint ventures in other areas that they have not fully entered yet to spread their market range....