Bridgestone Tyres European Marketing Strategy
Bridgestone Tyres: European Marketing Strategy
Daniel Rahman
October 24, 2011
Rhonda Payne
Table of Contents
Title Page…………………………………………………………... 1
Table of Contents……………………………………………........... 2
1.0 Executive Summary……………………………………………. 3
2.0 Problem Statement……………………………………............... 3
3.0 Situational Analysis……………………………………………. 4
3.1 TOWS Analysis………………………………………………... 7
3.2 PEST Analysis……………………………………………......... 12
3.3 Solberg’s Nine Strategic Windows…………………………….. 15
3.4 Porter’s Analysis……………………………………………….. 16
4.0 Alternatives……………………………………………….......... 18
5.0 Recommendation………………………………………............. 22
6.0 Conclusion……………………………………………………... 24
Work Cited…………………………………………………………. 25
Appendices…………………………………………………………. 26
Bridgestone Tyres: European Marketing Strategy 1.0 Executive Summary
The European tyre industry is very unique. Primarily dominated by Michelin, there are several other competitors that hold a strong, consistent market share and brand awareness. Bridgestone is not one of these companies; Bridgestone’s current marketing strategies in Europe are not at all effective. Currently, Bridgestone’s market share and brand awareness in Europe rate among the lowest of tyre manufacturers; if Bridgestone would like to continue to hold 20% of the global market share (highest w/ Michelin), they must address this issue promptly.
To solve this detrimental issue, I found that the most appropriate course of action for Shoshi Arakawa would be to recommend that Bridgestone opens a retail outlet in select European countries, selling all Bridgestone tyre brands (as illustrated on page 20). This is a fantastic opportunity, as this plan of action will strengthen relationships with European consumers, enable Bridgestone to learn more about the European market, reduce Bridgestone’s dependency on partners, allow Bridgestone to create a competitive advantage over the competition, put Bridgestone in a position to launch innovation or expansion, and overall achieve the
Daniel Rahman
October 24, 2011
Rhonda Payne
Table of Contents
Title Page…………………………………………………………... 1
Table of Contents……………………………………………........... 2
1.0 Executive Summary……………………………………………. 3
2.0 Problem Statement……………………………………............... 3
3.0 Situational Analysis……………………………………………. 4
3.1 TOWS Analysis………………………………………………... 7
3.2 PEST Analysis……………………………………………......... 12
3.3 Solberg’s Nine Strategic Windows…………………………….. 15
3.4 Porter’s Analysis……………………………………………….. 16
4.0 Alternatives……………………………………………….......... 18
5.0 Recommendation………………………………………............. 22
6.0 Conclusion……………………………………………………... 24
Work Cited…………………………………………………………. 25
Appendices…………………………………………………………. 26
Bridgestone Tyres: European Marketing Strategy 1.0 Executive Summary
The European tyre industry is very unique. Primarily dominated by Michelin, there are several other competitors that hold a strong, consistent market share and brand awareness. Bridgestone is not one of these companies; Bridgestone’s current marketing strategies in Europe are not at all effective. Currently, Bridgestone’s market share and brand awareness in Europe rate among the lowest of tyre manufacturers; if Bridgestone would like to continue to hold 20% of the global market share (highest w/ Michelin), they must address this issue promptly.
To solve this detrimental issue, I found that the most appropriate course of action for Shoshi Arakawa would be to recommend that Bridgestone opens a retail outlet in select European countries, selling all Bridgestone tyre brands (as illustrated on page 20). This is a fantastic opportunity, as this plan of action will strengthen relationships with European consumers, enable Bridgestone to learn more about the European market, reduce Bridgestone’s dependency on partners, allow Bridgestone to create a competitive advantage over the competition, put Bridgestone in a position to launch innovation or expansion, and overall achieve the
Cited: Automotive Industry. (2010). European Commission: Enterprise and Industry. Retrieved October 15, 2011, from http://ec.europa.eu/enterprise/sectors/automotive/index_en.htm Economy of the European Union EU Tax Policy Strategy. (2011). European Commission: Tax and Customs Union. Retrieved October 15, 2011, from http://ec.europa.eu/taxation_customs/taxation/gen_info/tax_policy/index_en.htm Hollensen, Svend PEST Analysis. (2011). Mind Tools Ltd. Retrieved October 12, 2011, from http://www.mindtools.com/pages/article/newTMC_09.htm Porter’s Five Forces Using the TOWS Matrix. (2011). Mind Tools Ltd. Retrieved October 12, 2011, from http://www.mindtools.com/pages/article/newSTR_89.htm Appendices Appendix A: Market Share for Tyres in the World Market, 2008 Manufacturer | Market Share (%) | Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 155. Appendix B: Bridgestone’s Market Share for Tyres in the Most Important Markets, 2008 Market Area | Bridgestone Market Share (%) | Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 155. Appendix C: The European Tyre Market, 2008 million units | Car Tyres | Truck Tyres | Total | Appendix D: The Tyre Market in Main European Markets (cars and trucks), 2008 | France | Germany | Italy | Spain | UK | Other Markets | Total | Appendix E: Sales of Retreaded Tyres in Main European Markets, 2008 (million units) | France | Germany | Italy | Spain | UK | Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 157. Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 159.