Goodyear-Sumitomo Alliance

GOODYEAR SUMITOMO DEAL Introduction Goodyear was the leading tire manufacturer till the late mid-eighties after which Groupe Michelin and Bridgestone Corp toppled Goodyear from its number one market position. Samir Gibara of Goodyear valued to regain the top spot by increasing the yearly revenues by at least 50% and that would be come-at-able only through and through the acquisition of another company. Sumitomo Rubber Industries Ltd of lacquer seemed to be a good strategic acquisition for Goodyear because of its Dunlop defect and manufacturing facilities in Japan a market that Goodyear was looking to acutely enter into. In this paper, we analyze the Goodyear Sumitomo alliance by in the main discussing roughly the creation process, rationale behind the alliance and pagan integration challenges. We will also briefly describe about the Goodyear Michelin alliance for manufacturing run-flat tires. Strategic Rationale The combination supports both companies strategic objectives for crop and cost leadership. Through this alliance, Goodyear will get entranceway into the Nipponese market with the help of Sumitomo and its subsidiaries (Dunlop, OHTSU). At the same time, Sumitomo would get entry into the North America and Europe markets through Goodyears dispersal network.

As a result of this collaboration, both will be able to compete more effectively in the spheric markets, offer enhanced branded products and generate benefits for customers, shareholders, associates and suppliers. Further, the top furrow of both the companies is expected to grow from the new products and distribution through this alliance. In totition, cost improvement and rationalization will add a combined estimated $300-$360 million to the operating profits of the reefer ventures during the next three years. Creation Process Goodyear and SRI will form quartette joint venture operating companies and two synergy cerebrate support ventures. Goodyear agreed to pay $936 million to SRI. Goodyear would also educate 10%... If you want to get a full essay, differentiate it on our website: Orderessay

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