Goodyear Tire and Rubber Company and Bridgestone Tire Co.

Topics: Bridgestone, Goodyear Tire and Rubber Company, Tire manufacturers Pages: 14 (5129 words) Published: March 2, 2013
Bridgestone Tire Company Analysis
10/08/2012

Table of Contents
Executive Summary……………………………………………………………………………………………………... 3 History……………………………………………………………………………………………………………………….. 4 STEEP Analysis……………………………………………………………………………………………………… 6-12 Competitive Analysis………………………………………………………………………………………………….. 12 Market Analysis………………………………………………………………………………………………………...... 13 Financial Analysis………………………………………………………………………………………………… 13-14 SWOT Analysis……………………………………………………………………………………………………… 15-19 References…………………………………………………………………………………………………………… 20-23 Appendix……………………………………………………………………………………………………………… 24-32

Executive Summary

This analysis focuses on the Bridgestone tire company, specifically it explains how and when the company started, how many employees do they have around the world, which are their main competitors, financial analysis from 2007 to 2012, and it concludes by showing the company’s strength, weaknesses, opportunities and threats. This report begins with a general history of how the company started from being a clothing business and transforming into one of the most important companies in the world. Next, is the external environment analysis applying the STEEP model, explaining factors such as down turns in the economy, lack of investment in innovation, environmental issues, and political regulations. The STEEP analysis is followed by a competitive analysis that positions and compares Bridgestone Corporation against its competitors. Then specific statistics have been incorporated into the market and financial analysis including: market share, return on equity, revenues, operating income, and net sales. The report concludes with a SWOT analysis explaining how the company could be impacted by a global slowdown and growing competition in the industry. The SWOT analysis also provides key information about what are the weakest areas of the company, what are possible threats, and what are their opportunities and strengths against its competitors. These analyses gather plenty of information that one can conclude where this industry is headed and how it will change to meet new possible challenges.

History
In 1906 Shojiro Ishibashi (Fouder of Bridgestone Tire Co. Ltd) was 17 years and he took over his family clothing business in Kurume, Fukuoka Prefecture. Shojiro’s dream was to dedicate his life to contributing to the nation of Japan above and beyond the work of his family business. Shojiro’s accomplishment in the business was very impressive, his specialization were tabi Japanese traditional socks, reform of the apprentice system, use of a standardized pricing system, creation of Jika-tabi (socks with rubber soles used as work shoes), development of the rubber shoe business and overseas production. Shojiro used the money accumulated from Jika-tabi and the rubber shoe business to make tires, which was an industry that didn’t exist in Japan at that time. He believed in the future of motorized transportation in Japan, so he decided to produce tires domestically. (Bridgestone Corp., n.d) The very first tire that Shojiro’s business produced was on April 9th, 1930 by the Japan “Tabi” socks Tire Division. Approximately one year after first tire was built, on March 1st, 1931, the founder, Shojiro Ishibashi, anticipated the future potential of tires for passenger cars and international development of business so he made the Japan “Tabi” socks Tire Division independent and instead he used an English translation of his surname for the name of the company and established the Bridgestone Tire Co., Ltd. in the city of Kurume, Fukuoka Prefecture. Like many new companies, Bridgestone Tire Co., Ltd, experienced many challenges in its first years, but the company quickly improved its quality and the business rapidly expanded. (Bridgestone Corp., n.d) Between the years of 1941 and 1950 the company faced very tough times, the World War II brought unexpected challenges not just for the company but also for...
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