The Goodyear Tire & Rubber Company

Paper Summary:

This paper explains that Goodyear has organized its operations under different strategic business units based on products sold and the geographical areas in which these products are marketed. The author points out that Goodyear has used an effective positioning strategy by identifying its core competency early on, allowing it to maintain its market position and market share. The paper relates that the tire industry relies heavily on its suppliers; therefore, many companies have their own back-end suppliers who are reliable and dependable.

Table of Contents
Introduction and Overview
Variables That Identify Goodyear with Respect to Other Tire Companies
Financial analysis
The Tire Industry Overview
Competitive Advantage
Conclusion and Recommendations

From the Paper:

"The earning per share was 8.56 on November 26th 2003. A 52-week high of 8.35 was reported on 12/2/02; the lowest traded value was 3.35 on 2/6/03. (NYSE, 2003) According to a review of the comparison of the tire industry by Yahoo's finance web page; Goodyear is ranked third on the profit to earnings (P/E) ratio. The company, in the past year, has also not performed well on the price performance index (-16.59%). (YahooFinance, 2003c) The total market capitalization is 1.2 Billion dollars. The return on Assets and the return on the equity for Goodyear are negative. (YahooFinance, 2003a) The company also does not have cash flow for the past year (-0.88%) in comparison to Cooper Tire and rubber (1%). The long-term growth rate (5 years) of Goodyear is rated at 5% when compared to Cooper Tire and Rubber 10%, TBC Corp 9.50% and Bandag Inc. 7%."

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