Students : Adrien Chaussii, Hugues Bertin, Amine Karouache, Maros Kucera , Alexandru Ionita, Ionut Burlusi, Ionela Ion

Road transportation has still the share of lion (44% of

European transportation) and still growing (expectation) Dominated by small actors (80% of the company have less than 5 trucks)

 3 mains actors: Michelin, Bridgestone, Goodyear

Low price difference between the top 3 Threat of new entrance(Chinese and Korean firms). Low

cost of labor and cheap prices Low added value perceived of the product Cheap price is a key factor STATEMATE INDUSTRY 27% of tires sold in the world are for Truck and buses (24 million $ / year in Europe)

OE is the original equipment market. It includes the tire sold to equip brand new cars. RT is Replacement Tires market. It includes the maintenance and replacement of used tires. This is the market MFS is focused on even if they leitmotiv is sell a service not a product .

 Dominated by professional tire distributors

Theyre not specialized, or contracted by one single

brand. They dont have the Michelin special skills in maintenance for ensuring the four lives program of a tire. This program is at the heart of the perceived added value of Michelin.

 Michelin 4 lives program:

Better longevity of tires but they need a Michelin special maintenance.

ES (external) Demand (-5) Cost of labor (-2) Human resources (-1) State policy (-2) Frequency of Tech changes (-6) Price stability (-3) Raw material availability (-3) AVG -3.14

FS (internal) Potential cashflow (1) Capital (5) Productivity (2)

IA (external) Need (1) Level of profitability (1) Growth potential (2) Return on investment (0) High differentiation (0) Strong barrier for new entrance (4)

CA (internal) Fuel consumption (tire design) (-3) Observed durability of the tire (R&D) (- 5) Price of selling (-6) Customer loyality (-5) Cost production (-3) Innovation (Service) (-3) Human resources (expertise and knowledge) (-1)

AVG 2.6

AVG 1.3

AVG: -3.7

F.S.

2.6

-3.7

1.3

C.A.

I.A.

-3.14

E.S.

 Stalemate industry.
Better to share the game No innovation; core activity

only Low perceived added value by customer Tight cost control Efficient use of asset

 Potentially successful innovation. Added value of service barely perceived by customers, and

also by sales team Weaknesses regarding the distribution network Organizational issues: Legal departments and Accounting departments disregard the MFS program because of the administrative overwhelming work it implies. Michelin relies on their own brand power to raise the market. Lack of functioning tool concerning the information system

MICHELIN performance
10

RELATIVE IMPORTANCE

R4 C5

R3 R1

R7

7
6 5 4 3 2 1
R6

R2

C1

R5

C2

C4

C3

C6

10

 Company should continue with the service MFS

however important turnaround should be implemented Improve the contract: 5 years is too long Improve the IT platform Training for the sales persons