Industry Study - Retread Tire Industry
Shrader Tire / Retread Tire Industry
Industry Analysis
October 31, 2012
Competitive Environment
Introduction
The retread tire market is extremely competitive market due to the constant technological improvements in the industry and the ever changing Federal and local guidelines they must follow. It is extremely easy to enter the retread market, but it is hard to stay competitive in this market. They keep up to date on technological advances in order to stay current in their industry, which is quite expensive. There are new industry standards that are being set using the Yokohama RY617 as the benchmark for this new program which require new equipment to meet these standards (Truck News, 2012). There are even requirements as to how the new retread tires will be labeled.
Main Industry: Tire Retreading
According to the Tire Retread & Repair Information Bureau (TRIB) tire retreading is the process in which worn tires (called casings) are inspected and only the sound casings are chosen to get a new tread after careful inspection. After selecting the appropriate casings the remainder of the worn tread is removed, by buffing the old tread away, and a new tread is bonded to the casing which is very much like the process used to manufacture new tires. The retreaders use processing techniques including the use of heat, time and pressure to retread the casings (TRIB website, 2012).
According to government statistics, there were 1,845 companies in this category in 1992, down from 1,930 in 1987. In 1997, there were 632 companies, operating 754 establishments. Their shipments were valued at $983 million.
PORTERS FIVE FORCES
Rivalry in the industry
There is a lot of competition in the tire retread industry throughout the United States. Shrader’s main competition is BF Goodrich, Michellin, and Goodyear Tire. The competition includes not only franchises but smaller stores as well. It is
Industry Analysis
October 31, 2012
Competitive Environment
Introduction
The retread tire market is extremely competitive market due to the constant technological improvements in the industry and the ever changing Federal and local guidelines they must follow. It is extremely easy to enter the retread market, but it is hard to stay competitive in this market. They keep up to date on technological advances in order to stay current in their industry, which is quite expensive. There are new industry standards that are being set using the Yokohama RY617 as the benchmark for this new program which require new equipment to meet these standards (Truck News, 2012). There are even requirements as to how the new retread tires will be labeled.
Main Industry: Tire Retreading
According to the Tire Retread & Repair Information Bureau (TRIB) tire retreading is the process in which worn tires (called casings) are inspected and only the sound casings are chosen to get a new tread after careful inspection. After selecting the appropriate casings the remainder of the worn tread is removed, by buffing the old tread away, and a new tread is bonded to the casing which is very much like the process used to manufacture new tires. The retreaders use processing techniques including the use of heat, time and pressure to retread the casings (TRIB website, 2012).
According to government statistics, there were 1,845 companies in this category in 1992, down from 1,930 in 1987. In 1997, there were 632 companies, operating 754 establishments. Their shipments were valued at $983 million.
PORTERS FIVE FORCES
Rivalry in the industry
There is a lot of competition in the tire retread industry throughout the United States. Shrader’s main competition is BF Goodrich, Michellin, and Goodyear Tire. The competition includes not only franchises but smaller stores as well. It is
References: TRIB. (n.d.).About Retreading. Retrieved July 24, 2012, from Tire Retread and Repair Information Bureau: http://www.retread.org/?page=AboutRetreading Truck News. (2012, July 17). SmartWay program setting retread standards. Retrieved July 26, 2012, from Truck News:http://www.trucknews.com/news/smartway-program-setting-retread-standards/1001545012/ "About Retreading - Tire Retread & Repair Information Bureau." Tire Retread & Repair Information Bureau. Tire Retread & Repair Information Bureau, n.d. Web. 3 Oct. 2012. . Koeth, Denise. "Retreading Market Grows as Fleets Look to Reduce Costs." Tire Review The Tire Industries #1 Source for News and Analysis. N.p., 18 Nov. 2010. Web. 28 Sept. 2012. . Top of Form Bottom of Form