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Cooper Tire And Rubber Company Case Study

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Introduction Cooper Tire and Rubber Company was found in the 1914. This company specialized in manufacturing raw materials and also tires for all types of vehicles. Cooper Tire change from producing low cost types of tires to producing a wide variety of high performance tires that is customize to the needs of the growing population of cars. This company has a strong competitive force in the global automotive tire industry. It is currently the four largest tire manufacturing company in the United States. In addition to Cooper Tire, Goodyear, Michelin, and Bridgestone/Firestone are the top competitors in the global automotive tire manufacturing industry. Five Force Analysis 1. Competitive Rivalry Competitive rivalry can be defined as the …show more content…

The tire manufactures sells to variety of buyers such as small tire dealers, manufactures of automobiles. However Cooper Tire focuses on replacement companies such as Pep Boys and Auto Zone. The power is in the hands of the large retailers, because they are purchasing a large order of tires that they could just as easily purchased from another tire manufacturer. However, if a large number of their customers wants Cooper Tire then would their bargaining power would be reduced. 5. Supplier Power The supplier bargaining power in the industry is low. Currently, the sourcing and supply chain management industries make larger orders which will increase their cost savings. This shows Cooper Tire and Rubber Company it can order from the same supplier as Goodyear and Michelin. Luckily, Cooper Tire realizes that they do not have the same level of bargaining power relative to Goodyear or Michelin stress the importance on maintaining a supplier relationship. This helps Cooper Tire to minimize the effects of these price fluctuations through long-term supply contracts. Cooper Tire key success factors are high performance, lower delivery cost, and efficient production. High

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