The Tire Business Is Becoming Increasingly Competitive as New Manufacturers

Essay

The tire business is becoming increasingly competitive as new manufacturers from Southeast Asia and elsewhere enter the global marketplace. At the same time, customer expectations for performance, tread life, and safety continue to increase. An increasing variety of vehicles, from the small and innovative gas/electric vehicles to the large SUVs, place more demands on tire designers and on tire manufacturing flexibility. Established brands such as Goodyear and Firestone must look to new ways to compete and maintain profitability.
Required:
1. Is the competitive strategy of a global tire maker cost leadership or differentiation? Explain your answer.
2. What are the ethical issues, if any, for tire manufacturers?