goodyear case report

GOODYEAR CASE REPORTS T E P H M A R S H , H A T T I E D E C K E R ,

N A T E B R A N H A M

INTRODUCTION• Sears contacted Goodyear about selling

their Eagle brand tire in Sears stores• Goodyear originally declined in 1990• Now reconsidering after a $38 million

loss in 1990 and a change in top management in 1991

GOODYEAR TIRES• Founded in 1898 in Akron, OH• Started creating bike and carriage tires• Largest manufacturer 1916-1990• 20-25% world tire manufacturer• 37% US manufacturer• #1 tire manufacturer in North America and

Latin America• #2 tire manufacturer in world

GOODYEAR TIRES-PRODUCT

GOODYEAR TIRES-PRICE

GOODYEAR TIRES-DISTRIBUTION

DECISION PROBLEM• Goodyear must decide whether or not

to sell their tires at Sears.

STRATEGIC OPTIONS• Do nothing• Accept Sears proposal

Sell Eagle brandSell entire product lineSell some brands

DO NOTHING

SELL EAGLE BRAND IN SEARS

SELL ENTIRE PRODUCT LINE IN SEARS

SELL SOME BRANDSAT SEARS

RECOMMENDATIONS• Product policy• Distribution policy