Overview Of The Global Tire Industry

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Tire Industry Industry Overview Executive Summary There are roughly one billion tires produced each year and this number is expected to increase exponentially as the population grows and more consumers are entering the middle class in the developing world. Although the tire industry took a rough hit in the wake of the global financial crisis, the industry it beginning to show signs of new vitality. Of the primary four competitors that account for roughly seventy percent of the global market, Goodyear tires is expected to gain the most in market share over the coming couple of years. Despite losing in total sales volume in 2012 over the previous year, Goodyear has actually been able to still exceed its profitability goals through its strategy of diversification. Introduction to Tire Production Tire production has evolved to new technological heights of the last few decades. New materials and new production processes allow manufactures to achieve certain objectives in regards to efficiency, durability, or performance. The basic manufacturing process consists of using rubber and many other chemical additives, which are mixed in a large machine called a Banbury (Goodyear, N.d.). The mixture is then allowed to cool, rolled flat, and cut into strips. These strips are used to form a mold of a tire in an uncured state. The tire is then heated at a high temperature which vulcanizes the rubber and gives the tire its final shape. The finished tires are then warehoused and

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