Inc. : Tire Industry Commercial & Non Pneumatic Tires

1076 Words Mar 7th, 2016 5 Pages
Bridgestone, Inc.: Tire Industry Commercial & Non-Pneumatic Tires.
4.0 Financials:
Introduction: Bridgestone/Resilient Technologies non-pneumatic tires their recommended cost is $500 per tire. And also the mark-up that is forty percent. We forecast that sales level will improve at slightest sixty percent from this activity; this will reduce the force of our fixed costs and get better opportunities to improve our assembly extent, which will also get better profits indefinitely. Temporary profits are superior with the unique strategy.
 4.1 Break-Even Analysis: Bridgestone/Resilient Technologies manufactures of non-pneumatic tires recently have been experiencing financial difficulties in its operation. As a matter of fact, for the past three years, tire companies have been struggling to reach its break-even point. The companies especially Michelin tire company has experienced losses last year although they have projected a profit of $7,000.
 4.2 Sales Forecast: Bridgestone ambition is to enhance tire sales by generating more company-owned storefronts, to grow its market. The goal of the company is to add 500 more outlet channels, which can be company-owned or in another or different manner. One of Bridgestone’s key competitors happens to be Goodyear, which is a publicly traded company that produced $3 billion in revenue in 2014 alone. Bridgestone is really hoping to be more competitive with this industry competitor and heighten sales within the next five years in order…

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