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Final Application Project

The company is able to maintain this advantageous

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Unformatted text preview: ire is the 9th largest tire manufacturer in the world with more than 430 million tires on vehicles across the globe. In addition to this global rank, it is the 4th largest tire manufacturer in the US with a 14% market share. This popularity helps • • • to maintain positive brand recognition, giving the company a competitive edge over other tire manufacturers. The company is able to maintain this advantageous market position through extensive Research and Development. The Research and Development also serves as strength for Cooper Tires considering they are constantly developing new products. In 2011 the company invested $44.6 Million, 1.1% of sales into R&D. Investments as such have allowed the company to launch new products on a timely basis and strengthen its product portfolio. Weaknesses (Internal) The company is frequently facing product liability claims filed by customers who have been in accidents allegedly due to defective tires. In 2011 the company’s product liability cost totaled to $97,504. Additionally, in 2011, the company increased its product liability reserve by $66,788. These formal claims have a negative impact on customer confidence and brand recognition, which in turn can hurt its profit margins. Opportunities (External) According to the Market Line Company report, the Rubber and Tire industry has and will continue to grow in coming years. In 2011 the global tires and rubber market generated revenues of $131.5 billion, (a compound annual growth rate of 1.1%). MarketLine predicts that...
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