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The company's major options in this decision were whether to sell only the Eagle brand tires or all of the Goodyear tire brands.
How would you characterize the competitive environment in the tire industry in1991?
The tire industry is divided into two end-use markets:
1. the original equipment tire market (OEM)
2. the replacement tire market
The Original Equipment Market
OEM tires are sold by tire manufacturers directly to automobile manufacturers, and they account for 25% - 30% of tire unit production volume each year. The Goodyear Tire & Rubber Company is a perennial OEM leader, in 1991 they captured 38% market share...
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