Michelin Business Analysis

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Business Analysis Project
IN FOCUS
BUILDING MICHELIN 'S COMPETITIVE ADVANTAGE IN CHINA
Michelin Group prides itself as the Global Leader in Tire Innovation providing the forward-looking solutions to help the road transportation industry in its bid for competitive edge and to meet society 's ever pressing needs for safety , fuel efficiency , and respect for environment Michelin had been the first to patent radial tires , which had been widely used and famous in automotive industry and the company boasts of a century of progress and innovation in tire design and many product firsts At the end of December 2005 , Michelin posted 36 percent growth in its net income at EUR 889 million (USD 1 .049 billion ) with over EUR 15 .59 billion (USD 18 .40 billion ) in net sales , up 3 .6 from the previous year . While the tire industry continues to consolidate in the short term , Michelin has continued to expand its product line and operations into new regional markets . Currently , the company has a global sales network in 170 countries , 71 manufacturing plants in 19 countries , 6 rubber tree plantations in Brazil and Nigeria , and an extensive Brand Portfolio , which includes Michelin and BF Goodrich as the flagship brands of the company as well as 2 distribution networks namely Eurometer and TCI Michelin continues to grow with a firm mission to contribute to the progress of mobility . In 1988 , Michelin started to selling tires to China . By 1996 , Michelin established the first joint venture (JV ) in Shenyang in 1996 to seize the growing opportunities in China market . A bigger opportunity emerged in 2001 when Michelin was offered to buy Shanghai Tire and Rubber Co . Ltd (STRC . Michelin signed a 200 million deal to buy 70 stake in the company and the right to use Warrior brand , which had been popular in China since 1947 The move provided Michelin with an annual tire manufacturing capacity of 5 million passenger car and light truck tires and immediately capture 5...
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