- Goodyear Tire and Rubber Company
- The primary question is one of broadening the existing distribution. Consideration of this
question places the allocation of the product mix at issue. Other concerns arise regarding
trade relationship within the channel, conflict within the channel and potential
cannibalization. The concept of market evolution is introduced in this case along with the
inescapable linkage between channel strategy and product strategy.
- Discussion of the case will follow these basic questions:
- How would you characterize the competitive environment in the tire industry in 1991?
- What is Goodyear's relative competitive position within the tire industry?
- Does it make strategic sense for Goodyear to broaden its distribution beyond company-owned and franchised Goodyear tire retailers as a matter of channel policy? Why?
- What are the strategic implications of broadened distribution of Goodyear brand tires through Sears Auto Centers?
- What effect, if any, does the number of brands and specific brands sold through Sears have on the distribution decision? Why?
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