| Michelin: Strategy of an organization |

Strategy and competitive analysis

The mission

Michelin is a tyre manufacturer which is based in Clermont-Ferrand. It mission is provide tyres which can be used during a long period and which guarantee security of drivers when they use it.

Michelin has a responsibility to advance how people and goods are transported across the globe. At the same time, Michelin has to be socially responsible. It must find ways to make its products more fuel efficient. And it considers that it has to make its processes and plants more environmentally friendly.
Definition of the business

The vision

Since the very beginning, Michelin keep the same vision: encourage the mobility of people and goods. This vision is carried through the signature: “A better way forward”, now labelled on every single communication support worldwide.

Values

Michelin is an old company which has kept a paternalistic management.

* People: Michelin wants to get the most out of their employees in order to deliver the best quality. * Facts: Michelin tries to test solutions, they are pragmatic * Shareholders: Michelin want the shareholders to be satisfied in order to keep on running * Environment: Michelin production activity is getting more and more respectful towards the environment

External analysis: the identification of opportunities and threats

Five forces model

Risk of entry by potential competitors

There are few potential competitors, because in the automobile industry, cars manufacturer haven’t got the capacity to develop tires. The majority of cars manufacturer work with smaller companies which supply spare part. In consequence it is not their strategy to enter in the tires sector. The risk of entry by potential competitors is weak.

Intensity of rivalry

The competition between tires companies is very strong and Michelin Company had loose the first place since 2005. The tires market is dominated by