This document summarizes a case study about Goodyear Tire's deteriorating relations with its dealers from the 1970s to the early 2000s. It discusses how Goodyear initially had good relations with dealers but this declined in the 1990s due to issues like high debt, low fill rates, and production cuts. The document then outlines Goodyear's attempts in the 2000s to improve relations through actions like dealer conferences, improved pricing mechanisms, and exclusive new product launches to rebuild trust.

1. MANAGING DELAER
RELATIONS
Presentation By,
Team 3

2. CASE ABSTRACT
• The case 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 case discusses the reasons behind the deterioration of dealer
relations and Goodyear's attempts to improve them.

3. ISSUES
• Importance of good dealer relations
• Impact of tying up with wholesalers on other channel partners

4. INTRODUCTION
• 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

5. CHRONOLOGY
• 1970 – Had good relations with dealers, offered aggressive pricing
and on time delivery
• 1986 – Had huge debt burden, low fill rate, high product recalls
• 1995 – Had production cut back, low sales, lack of communication
• 2000 – Dispute with Bob Davis, a distribution agent. Due to irregular
pricing, inefficient inventory management, and in terms with quality,
price and order delivery mechanism
• 2003 – Attempt to improve dealer relationships

6. SWOT ANALYSIS
6
Strengths
 High Market share in the US
 Big global market, with 42% revenue generated
from global sales.
 Established brand name.
 Market share leader in North and South America
Weaknesses
 Plunge global sales.
 Loss market share by 3.2%
 No strong market share outside the American
continent
Opportunities
 Great acceptance overseas due to known brand
name internationally.
 Market penetration in countries such as China,
India, and Russia.
 Better distribution channels allows for greater
sales to a wider market. Allows for better brand
recognition.
Threats
 High competition in both price and quality

7. PROBLEMS
• Relationship with dealers
• Low Fill rate
• Motived with market share maximization
• No product recall and warranty services
• Product cut back
• Communication gap
• Conflict with Mr. Bob Davis on terms of Price, Quality and Order delivery
mechanism
• Price fluctuations
• Inefficient inventory management

8. SOLUTIONS - Robert Keegan Takeover
• Dealer conferences to cut communication gap
• Improved fill rates and organized uniform pricing mechanism
• A new product launch and sold exclusively through independent dealers
• Fair and equitable distribution and pricing policies
• Tire academies to train dealers exclusively, which included sales training
and brand building
• Focus group interviews with dealers
• Convincing and Re-inviting ex-dealers to business
• Assigning a decision-maker to improve communication flow