Michelin a Global Company free essay sample

Since this event there have been a multitude of other nnovations: the invention of the radial tire in 1946 Ouly, 2010), and the creation of specialty tires for any form of transportation imaginable on and off road. In the recent years Michelin research and development teams have pushed themselves to create more cost efficient, fuel efficient and safer products. The technology of the run-flat tire is one of the new innovations introduced to the market in recent years. The more common design has sidewalls that are reinforced with extra layers of heat-resistant materials. The thick sidewall is very stiff to resist flexing, and the wire-reinforced bead is also thicker and stiffer. This Michelin 3 tire can actually support the weight of the vehicle on the sidewall, but the tire is heavier and the stiffness produces a somewhat harsher ride (November, 2005. pg. 136). This technology is widely available for many makes and models, the down fall is the sheer weight of these tires make them less fuel efficient and cost efficient due to the amount of materials need to make the tire. We will write a custom essay sample on Michelin a Global Company or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This has pushed these teams to improve their design, which brought about the PAX System. The PAX System does not feature oversized sidewalls. The thin walls and optimized structure in the PAX System nsures that the rolling resistance is reduced and the cars emissions, in return, lower (November, 27 2005. pg. 1). The introduction of the TWEEL is another innovation of Michelins research team. This concept tire has no air or sidewall for that matter. The TWEEL is wheel and tire technology in one, that replaces the need for air pressure while delivering fused with a flexible wheel that deforms to absorb shock and rebound. Without the air needed by conventional tires, TWEEL still delivers pneumatic-like performance in weight-carrying capacity, ride comfort, and the ability to envelop road azards (April, 2005. pg. 9). Expected to unveil in 2012 is the Active Wheel technology created by Michelin, this technology includes in-wheel electric motors and a motorized suspension to free up space in the front and rear of the vehicle. This model also eliminates the need for transmissions and exhaust system Ouly 8, 2010). Another way to decrease emissions and fuel costs which are very important in this market where legislation is pushing manufactures to go green. Michelin 4 All of these innovations by Michelin have kept them at the top of market for many ear years, and attractive to the National Culture, or the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society (2007. pg. 1 50). Since the invention of the radial tire, and the first pneumatic tires, which will continue to run the market Michelin feels, but these new technologies are the future and will continue to keep the corporation ahead of the game. Michelin not only is in the tire and rubber business, for many years now Michelin has published the Michelin Red and Green Guides along with maps. The Red Guide s a guide book to hotels and restaurants, which in the beginning were Just those located in France. Now these guides are published grading food and lodging to multiple places across the world. The Green Guides are for tourism. Michelin also publishes maps of areas such as: France, European countries, Africa, Thailand and the United States Ouly 8, 2010). In Michelin created ViaMichelin a digital mapping service that provides mapping and travel solutions for the internet, mobile and satellite navigation products with street level coverage of Europe, USA, Australia and parts of Asia and South America Ouly 8, 2010). Another way Michelin stays at the top of its market is globalization and variety. Michelin is the worlds largest tire manufacturer , it has production plants in France, Germany, USA, United Kingdom, Canada , Brazil, Thailand, Japan, Italy and several other countries0uly, 2010). In correlation with their new tire production, Michelin also produces it own rubber for their new tire and retread facilities. Along with it vast span of countries it also Michelin 5 manufactures every possible type of tire for any form of transportation imaginable, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty rucks, motorcycles and the space shuttle0anuary 11, 2010). This enables Michelin to be profitable in multiple areas of the business, and adjust to the changing market at any time, and consistently push the competitors to keep up. For example after the events of September 1 1 , air travel was greatly decreased due to the fear of another terrorist attack and increased security. Airlines were losing money, and were forced to ground planes, in the mean time the United States military was gearing up to go to war. This was unexpected, not only by Michelin but by everyone in the world. In eaction to this Michelin increase their production of military tires and decrease the production of commercial airplane tire. This action would have been a tough aspects of the market. This allowed them to still meet the demand of their clienteles and also still pull a profit in a tough market. A companies ability to be global and provide a variety of products for their market, along with their ability to adapt to environmental and cultural changes is what can keep them cutting edge. This competitive advantage or the ability of one organization to outperform other organizations because it produces desired goods or ervices more efficiently and effectively than its competitors (2007. pg. 8) makes them more attractive to customers when dealing in contract negotiations and business mergers. Along with their coverage of the global market and versatility, Michelin has a great marketing strategy that keeps them on top. In the tough economic market they are faced with today, Michelin has come up with a new Michelin 6 advertising campaign, The right tire changes everything (October 24, 2009. pg. 128). This new campaign is to explain to customers the benefits of using it tir es. Michelin ires simultaneously deliver enhanced braking power, greater longevity and superior fuel efficiency.