Goodyear Tires - Managing Dealer Relations*



Case Code : CLSDM035
Publication date : 2005
Subject : Sales and Distribution
Industry : Automobile Ancillaries
Length : 04 Pages
Price : Rs. 100

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Key words:

Goodyear, Stanley Gault, Sam Gibara, American Tire Distributors (ATD), Tires, Dealers, Pricing, Fill Rate, Order Delivery


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This caselet discusses the change in relations of Goodyear Tires (Goodyear) with its dealers from the 1970s till the early 2000s. Although, initially Goodyear maintained good relations with them, there was a fall in dealer confidence levels in the early nineties. This caselet discusses the reasons behind the deterioration of dealer relations and Goodyear's attempts to improve them.


Importance of good dealer relations
Impact of tying up with wholesalers on other channel partners


The Goodyear Tire and Rubber Company (Goodyear), a leading global player in the tire industry, had net sales of US$18.4 billion for 2004 with a global workforce of 90,000 employees.

Its North American Tire (NAT) division was the largest provider of equipment and replacement tires for autos, motorcycles, trucks, farm, aircraft and construction applications to markets in the United States and Canada and to export markets...

Questions for Discussion:

1. Almost for a decade, dealers have had problems with Goodyear over one concern or the other. Enumerate the various problems that they faced and discuss how they led to increasing dissatisfaction among the dealer segment with the company.

2. "It is absolutely critical that we win back their confidence," said Robert Keegan, President and CEO of Goodyear. What are the measures that Keegan has taken/could have taken to improve dealer relations in light of the above statement?