Global Marketing

4132 words 17 pages
“Global Marketing Management”

“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. Page 4-6

2.0 Make an assessment of the alternative competitive strategies that Bridgestone can pursue to strengthen its European Market position. Page 7-8

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

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This is a revolutionary tyre that can provide Goodyear with a competitive advantage over its competitors and may be used to promote in Europe in order to strengthen its presence their.

For the second successive year in the UK, Goodyear has produced TV advertisements focusing on the company's strength of innovation, from the first tyre to land on the moon to their present day innovations, i.e. Run on Flat tyres. This is an effective strategy for Goodyear to use and although, Goodyear has an 11.3% market share in Europe, it is not as successful in both France and Spain, therefore the company's European Strategies need to be targeted more so in these countries.

In order to achieve its aims of producing a cost leadership strategy, Goodyear has adapted its business structure from alliances with Japanese Sunitomo Rubber Industries in January 1999. This was an advantageous decision because the company aims to be the lowest cost producer in comparison to the top three companies, which include Michelin and Continental. The alliance covers the two venture sales companies in Japanese which are responsible for OE sales and replacement sales (replacement of worn tyres). This is an effective strategy as replacement sales generate more sales than new sales. In the 2002 European tyre market, the total number of replacement sales was 155.1 million units over 74.7 million units in new


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