Abstract

By the end of 2005, Apollo Tyres India Ltd. had become the second largest tire manufacturing company in India, the market leader being MRF Tyres. However, Apollo’s aspirations were much higher and it wanted to become a US$2 billion company. It realized, however, that it could reach its goal only upon further expansion. Toward this end, it took a gaint leap to capture the global markets. Instead of starting from scratch to establish a presence in the global market, Apollo went the inorganic way. It acquired South Africa’s Dunlop Tires International (pty) Ltd. and Vredestein Banden BV of the Netherlands in 2006 and 2009 respectively. With these acquisitions, Apollo got hold of the African, Zimbabwean, European, and Canadian markets along with their manufacturing facilities, marketing, and distribution networks. This created a way for its flagship products into these markets as well. While this success resulted in the company realizing its goal, it raised its aspirations as well. The company set out to become a US$6 billion company by 2015-2016 and to feature among the world’s top ten tire makers. But its path was not without challenges. This case is meant for MBA students as a part of the International Business/ Strategy course.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Trends in the global and Indian tire industry.
• The changing competitive landscape of the industry.
• The issues and challenges in globalizing for an Indian firm.
• How far Apollo’s growth strategy can impact industry leaders such as Bridgestone, Michelin, etc.
• The challenges that Apollo will face in realizing its future growth objectives.

Keywords

Growth strategy, Globalization, International business, PESTEL, Industry analysis, Structural changes in the industry, Global tire industry, Indian tire industry, Porter's Five Forces, Competitive landscape, Organic Vs inorganic growth, Acquisitions, Market leader, Competition, Apollo, Bridgestone, Michelin