This is a problem identification process using I-DECIDE approach. Its one of my favorite decision making process.

1. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
INTRODUCTION
OF
THE
COMPANY
Looking back, the founding of The Goodyear Tire & Rubber Company in 1898 seems especially remarkable, for the
beginning was anything but auspicious. The 38-year-old founder, Frank A. Seiberling, purchased the company’s first
plant with a $3,500 down payment -- using money he borrowed from a
brother-in-law Lucius C. Miles. The rubber and cotton that were the
lifeblood of the industry had to be transported from halfway around the
world, to a landlocked town that had only limited rail transportation. Even
the man the company’s name memorialized, Charles Goodyear, had died
penniless 30 years earlier despite his discovery of vulcanization after a
long and courageous search.
Yet the timing couldn't have been better. The bicycle craze of the 1890s
was booming. The horseless carriage, some ventured to call it the
automobile, was a wide-open challenge. Even the depression of 1893 was beginning to fade. So on August 29, 1898,
Goodyear was incorporated with a capital stock of $100,000.
David E. Hill, who purchased $30,000 of stock, became the first president. But it was the dynamic and visionary
founder, hard-driving Seiberling, who chose the name and determined the distinctive trademark. The winged-foot
trademark, inspired by a newel-post statuette of Mercury in the Seiberling
home, has been altered over the years. Yet, it remains an integral part of the
Goodyear signature, a symbolic link with the company’s historic past.
Something else about these legendary early years lingers on through
Goodyear’s history. Something elusive and intangible, yet very
real.Something about the people. People like Seiberling, actually trying to
liquidate family-owned property in 1898 when he ended up taking that once-
in-a-lifetime chance to buy -- at a bargain -- the seven-acre tract that became
Goodyear. People like George M. Stadelman, a man who avoided crowds
and never made a speech, yet had a gift of integrity and foresight that guided Goodyear’s sales through a critical 20
years. People like Paul W. Litchfield, whose conviction and leadership helped inspire Goodyear’s development for
nearly six decades.
With just 13 employees, Goodyear production began on November 21, 1898, with a product line of bicycle and
carriage tires, horseshoe pads and -- fitting the gamble Seiberling was making -- poker chips. The first recorded
payroll amounted to $217.86 based on the prevailing wage of 13 to 25 cents an hour for a 10-hour day. After the first
full month of business, sales amounted to $8,246. Since the first bicycle tire in 1898, Goodyear pedaled its way
toward becoming the world’s largest tire company, a title it earned in 1916 when it adopted the slogan "More people
ride on Goodyear tires than on any other kind," becoming the world’s largest rubber company in 1926.
Today, Goodyear measures sales of nearly $20 billion, although it took 53 years before the company reached the first
billion-dollar-year milestone. And it all began in a converted strawboard factory on the banks of the Little Cuyahoga
River in East Akron, Ohio. Spanning the years, through all of those yesterdays, a legion of firsts and facts and figures
appears that reflect the making of a company
Source :http://www.goodyear.com/corporate/history/history_overview.html

2. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
VISION
Become a market-focused tire company providing superior products and services to end-users and to our channel
partners, leading to superior returns for our shareholders.
MISION
To
develop
products
with
superior
quality
and
value
that
best
fills
the
needs
of
consumers.
OBJECTIVE
1. To
maintain
38%
market
share
in
Original
Equipment
Passenger
Car
Tires;
2. To
be
market
leader
in
tires
industries;
3. To
continue
making
profit;
4. To
continue
growth
in
worldwide.
DILEMMA
In
1990,
Goodyear
clock
in
lost
$38
million
and
the
lost
had
triggered
Goodyear
top
management
to
find
the
best
approach
in
order
to
maintain
the
status
of
Goodyear
as
the
market
leader
in
tires
industry.
One
of
approach
is
to
consider
the
proposal
from
Sears.
Sears is an American chain of department
stores, which was founded, by Richard Warren Searsand Alvah Curtis Roebuck in the late 19th century.
The proposal raised several strategic considerations for Goodyear. First it a matter of distribution policy,
Goodyear had not sold the Goodyear tire brand through a mass merchandiser since 1920s. In addition
the move could create conflict with its franchised dealers. Second, if the proposal is accepted, several
product policy questions loomed. Specifically, should the arrangement with Sears include only Goodyear
Eagle brand or its entire Goodyear brand? Exhibit 9 shows the list of brand own by Goodyear.

3. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com

4. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
PROBLEM
IDENTIFICATION
AND
STATEMENT
The
move
to
consider
Sears
proposal
by
Goodyear
top
management
is
the
quick
win
strategy
to
minimize
the
impact
of
the
loss
of
$38
million
in
1990.
The
decision
to
accept
or
to
reject
may
jeopardize
Goodyear
brand
and
reputation.
Goodyear
need
to
find
the
real
problems
and
develop
the
best
approach
and
strategy
to
manage
the
problems
effectively.
The
tire
industry
divides
into
two
end-­‐use
markets
:
1.
The
original
equipment
tire
market
and
2.
The
replacement
tires
market.
Exhibit
2
above
shows
Goodyear
hold
38%
of
market
share
in
Original
Equipment
Passenger
Car
Tires.
The
tire
volume
is
directly
related
to
automobile
and
truck
production.Based
on
the
figure,
Goodyear
has
no
problem
in
the
Original
Equipment
Passenger
Car
Tires
segment.
Therefore,
Goodyear
only
need
to
maintain
the
good
business
relationship
and
rapport
with
the
Original
Equipment
buyer.
The
next
market
is
for
the
replacement
tire.
Exhibit
5
shows
Goodyear
is
a
market
leader
for
three
major
segments
for
replacement
tire
;
passenger
car
tires,
light-­‐truck
tires
and
highway-­‐truck
tires.
Compare
to
their
main
competitor
that
is
Michelin,
Goodyear
consider
as
better
in
every
segments.

5. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
As
summary,
in
terms
of
market
share,
Goodyear
still
has
a
good
and
strong
market
share.
Therefore,
Goodyear
has
no
problems
in
market
their
products
competing
with
competitors.
Based
on
the
above
data,
we
can
see
that
most
of
sales
or
Total
Sales
income
of
Goodyear
is
generated
from
Replacement
Tires.
Consequently,
Goodyear
needs
to
protect
and
maintain
Original
Equipment
Replacement
^re
the
market
share
in
the
Replacement
Tires
Market.
The
loss
of
$38miilion
may
resulted
from
decreasing
in
sales
in
25%
the
Replacement
Tires
market.
75%
Major
brand–name
tire
manufacturers
capitalized
on
their
reputation
and
experience
as
producers
of
original
equipment
tires
by
building
strong
wholesale
and
retail
dealer
relationships
and
networks
through
which
to
sell
their
brand-­‐name
replacement
tires
to
vehicle
owners.
In
the
USA,
Goodyear
have
a
total
of
7,964
of
retail
points
of
sales.
The
number
of
retails
points
of
sale
for
major
tire
brands
is
shown
in
exhibit
6
below.

6. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
In
short,
we
can
conclude
that,
the
main
factor
that
made
Goodyear
achieve
a
status
as
market
leader
in
USA
is
because
they
have
the
biggest
retail
distribution.
Goodyear
is
depending
a
lot
on
their
retail
points
of
sales
performance
and
reputation.
Reference
to
all
the
above
statement
and
data,
the
real
problems
face
by
Goodyear
is
the
growth
of
warehouse
membership
club
stores
and
discount
tire
retail
claims
coupled
with
mulitbranding
among
mass
merchandisers
contributed
to
the
3.2%
decline
in
market
share
for
car
replacement
tires
in
the
US
for
the
period
of
between
1987
and
1991.
Sears
is
one
of
the
biggest
warehouse
membership
club
stores
in
US.
The
growth
can
be
seen
in
the
exhibit
1
below;

7. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
Goodyear
problem
statement:
With
the
declining
trend
of
market
shares,
Goodyear
need
to
consider
the
opportunities
in
the
growth
of
warehouse
membership
club
stores
and
discount
tire
retail
claims
coupled
with
mulitbranding
among
mass
merchandisers
to
strengthen
Goodyear
brand
and
market.
Goodyear
need
to
be
less
dependent
on
their
current
retails
distribution
which
consist
of
franchise
dealers
and
start
looking
for
a
better
alternatives
such
as
a
proposal
from
Sears.
ENUMERATE
THE
DECISION
FACTORS
Two
sets
of
decision
factors
must
be
enumerated
in
the
decision-­‐making
process
is
alternative
courses
of
action
and
uncertainties.
Alternative
courses
of
action
are
controllable
decision
factors
because
the
decision
maker
has
complete
command
of
them.
Uncertainties
are
uncontrollable
factors
that
the
Goodyear
cannot
influence.
Goodyear
may
consider
several
strategies
in
order
to
strengthen
their
market
shares.
First,
Goodyear
may
decide
to
do
Market
Penetration.
This
mean
Goodyear
will
focus
on
their
existing
customers
and
products.
Goodyear
may
do
more
advertisement
and
promotion
to
educate
their
current
customers
to
be
more
loyal
to
Goodyear
tires
or
Goodyear
could
increase
sales
from
Original
Equipment
buyer.
However,
the
disadvantages
of
this
approach
are
its
make
Goodyear
live
in
the
Red
Ocean.
Means
that,
Goodyear
not
responding
to
the
current
trend
but
still
stick
to
the
traditional
approach
by
depending

8. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
more
on
existing
retail
distribution.
The
pros
of
this
approach
is,
the
current
dealers
will
be
secured
and
happy.
Second
alternative
course
of
action
is,
Goodyear
may
consider
expanding
their
market
of
existing
products
to
new
customers.
This
approach
is
under
Market
Development
strategy.
The
strategy
will
cause
Goodyear
to
do
extensive
A&P
activities
and
involved
some
changes
in
distribution
strategy
such
as
engaging
in
strategic
relationship
with
Sears.
The
approach
is
considered
as
Blue
Ocean.
Nevertheless,
by
creating
a
new
approach
to
gain
new
customers,
this
will
cause
conflict
in
Goodyear
current
dealers.
The
last
alternative
course
of
action
that
Goodyear
could
do
is
to
engaged
in
Product
Development.
In
recent
years,
consumers
had
become
more
price
conscious
and
less
brand
loyal.
Most
of
them
are
Goodyear
existing
customers
by
taking
into
consideration
Goodyear
as
a
market
leader.
Therefore,
Goodyear
may
consider
the
trend
and
might
produce
a
cheaper
tire
with
an
exceptional
quality
to
cater
a
price-­‐sensitive
customer.
However,
the
approach
might
jeopardize
Goodyear
brand
and
image.
Low
price
reflect
low
quality
and
this
is
against
Goodyear
brand
promise.
Goodyear
brand
positioned
as
premium
quality
brands.
marketing
strategy
(Markets)
New
Customers
(warehouse
clubs,
Current
Customers
discount
(retail
points
of
multibrands
sale)
independent
dealers)
Existing
product
class
Goodyear
(Product)
Market
Market
(30
current
Goodyear
penetration
Development
brand)
New
product
class
Product
(low
price
and
Diversification
Development
quality)

9. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
Goodyear
needs
to
decide
which
marketing
strategy
they
want
to
engage.
The
uncertainties
are
consumer
decision
making
in
selecting
the
brand
and
type
of
tires.
Surveys
showed
dealers
were
able
to
influence
car
owner’s
choice
of
replacement
tires,
both
to
brand
and
type
of
tires.
This
is
one
of
the
causes
of
growth
in
warehouse
clubs
since
1982
to
1992.
Pros
Cons
Market
• Less
cost
in
Advertising
&
Promotion
because
•
•
Red
Ocean
Loose
market
share
in
Penetration
Goodyear
only
need
to
refresh
their
existing
buyers
warehouse
club
and
mass
merchandise
• Experience
&
happy
dealers
Market
•
•
Blue
ocean
Can
cater
a
new
market
• Product
cannibalization
and
market
Development
•
•
Higher
cost
in
A&P
Unhappy
existing
dealer
Product
•
•
Produce
cheaper
tire
Increase
sales
•
•
Jeopardize
Goodyear
brand
Bad
perception
&
Development
• Cater
price-­‐sensitive
buyer
reputation

10. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
THE
FIVE
COMPETITIVE
FORCES
Threat
of
subs^tute
-­‐
Very
high
-­‐
-­‐
Market
is
maturing
-­‐
Bargaining
-­‐
Bargaining
power
of
power
of
Compe^^ve
Rivalry
supplier
between
Exis^ng
customer
Players
-­‐
Consider
high
due
to
-­‐
Consider
high
due
limited
avaibality
of
-­‐
Consider
to
availabelity
of
raw
materials
and
less
moderate
because
similar
products
in
+
supplier
of
current
market
the
market
share
-­‐
The
price
of
raw
-­‐
The
profit
margin
is
material
is
increasing
decreasing
since
mid
every
year
1970s
+
Threats
of
new
entrance
-­‐
Costly
to
enter
the
industry
Based
on
5
Porter
competitive
forces,
Goodyear
have
more
unfavorable
forces
towards
maintaining
current
distribution
channels
(franchise)
as
primary
marketing
channel
to
sales
Goodyear
tires.
Therefore,
Goodyear
needs
to
act
fast
and
start
to
look
and
consider
new
strategy
to
maintain
the
position
as
Market
Leader
in
tire
industry
in
USA.

11. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
SWOT
ANALYSIS
STRENGTH
WEAKNESSES
- Vast
experience
in
producing
and
selling
- Too
dependent
on
Goodyear
franchised
tires
product
dealer
- Have
7,964
Retail
Points
of
Sale
- Don’t
have
a
good
relationship
to
- Market
leader
in
US
membership
clubs
and
mass
merchandiser
- Second
market
leader
in
worldwide
such
as
Sears
- Market
leader
in
Original
Equipment
Passenger
Car
Tires
OPPORTUNITY
THREAT
- Producing
better
and
cheaper
tire
to
cater
- Business
in
Original
Equipment
is
not
prince-­‐sensitive
customers
concrete
due
to
highly
price
elastic
- Able
to
push
sales
by
introducing
new
- Dealer
might
promote
other
product
product
of
features
via
existing
dealers
which
offer
more
profit
margin
easily
- Engage
with
a
strong
membership
clubs
- The
growth
of
membership
clubs
and
mass
and
mass
merchandiser
to
tap
a
new
and
merchandiser
growth
market
- High
bargaining
power
of
customer
and
customer
Goodyear
has
good
and
strong
internal
strength
because
of
the
well-­‐established
structured
and
business
background.
In
addition,
this
strength
risen
more
opportunities
for
Goodyear.
The
opportunities
of
engaging
with
the
mass
merchandiser
and
membership
clubs
carry
added
value
to
the
Goodyear
market
and
operation.
Furthermore,
the
strength
could
reduce
the
impact
from
the
external
threat.
However,
Goodyear
needs
to
come
out
with
a
good
strategy
and
approach
in
order
to
neutralize
the
threat.
One
of
alternative
is
by
accepting
proposal
from
Sears.
IDENTIFY
THE
BEST
ALTERNATIVE
–
Market
Penetration
Based
on
the
argument
above,
Goodyear
has
to
capitalize
the
emerging
retail
outlet
that
is
membership
clubs
and
mass
merchandiser.
If
not,
they
might
loose
their
market
share
gradually.
To
capitalize
the
new
approach
doesn’t
mean
to
create
a
new
product
or
to
acquire
new
market
area,
this
can
be
done
by
upgrading
current
retail
points
of
sales
by
applying
a
same
strategy
or
concept
used
in
membership
clubs
and
mass
merchandiser.
Goodyear
have
a
strong
sales
distribution
and
fundamental
consist
of
franchised
dealer,
therefore
they
should
capitalise
this
advantages
at
optimum
level.
They
might
upgrade
their
current
dealers
to
be
equipped
with
latest
technology
and
extend
the
dealers
services
to
be
more
holistic
services
like
membership
club
does.
Goodyear
should
go
for
Market
Penetration.

12. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
(Markets)
New
Customers
Current
Customers
(warehouse
clubs,
(retail
points
of
sale)
discount
multibrands
independent
dealers)
Existing
product
class
Goodyear
(Product)
Market
(30
current
Goodyear
Market
Development
penetration
brand)
New
product
class
Product
Development
Diversification
(low
price
and
quality)
DEVELOP
A
PLAN
FOR
IMPLEMENTING
THE
CHOSEN
ALTERNATIVE
The
recommendation
for
4Ps
strategy
for
the
chosen
alternative
is
as
follows
:
Product
• Goodyear
need
to
focus
more
on
what
their
customer
wants.
The
product
should
be
custom
made.
Not
just
a
normal
bowls
or
a
normal
cup.
They
should
be
more
trendy
and
attractive
to
the
youngsters
• All
Roses’s
product
should
be
biodegradable
Price
• The
price
should
be
at
par
with
competitor
or
less
• Rose
needs
to
discuss
with
the
customer
(chains
store)
on
the
selling
price.
They
need
to
make
sure
there
is
still
profit
for
Rose
even
at
minimum
amount.
Place
• Rose
may
pick
a
few
stores
to
do
OEM.
Don’t
do
mass
production.
Its
may
reduce
the
quality
and
demand
for
the
products.
• Make
agreement
with
the
selected
stores
–
long-­‐term
agreement
to
protect
Rose
business.

13. Good
Year
Case
Study
–
IDECIDE
approach
Aku5299@gmail.com
Promotion
• Rose
need
to
focus
more
on
promotion
via
internet
for
their
own
products.
They
can
sell
worldwide.
• The
cost
of
promotion
may
be
shared
between
Customers
and
Rose.
This
is
the
smart
way
to
reduce
the
cost
of
A&P.
PROPOSE
DECISION