Michelin Case Study

As a group we have first read and analysis the case study on Michelin and took out what we felt were Michelin strengths and weaknesses both internally and externally.

Strengths are what Michelin is good at and also what Michelin is doing well at according to the case study.

Weaknesses are what Michelin are poor at and what they need to improve on for Michelin to be successful and to grow as a company so therefore a weakness is a bad thing for Michelin.

By being able to look at the strengths and weaknesses of Michelin both internally and externally we can start to plan for Michelin in the future and to be able to look at what Michelin is going not so well and find steps to sort these problems out.

Internal strengths

Michelin are not just involved with making tyres (but this is their major product) but they are also involved with the making of the tyres and of producing the Michelin guide. So this is an internal strength for Michelin because at the moment they have three lines of production to follow. Although their main line of production is their tyres although by Michelin being in more than one line of production this gives them the competitive edge over their competitors.

Michelin has a large research facility and road circuits for testing their tyres in France and the USA. This internal strength also shows that Michelin is committed to safety and is committed to keeping up with research and development in all their production and products. So therefore this Shows Michelin in a very good and positive light to existing and potential customers so a very good internal strength.

ÐŽoMichelin understands that it must turn itself from a smug and lumbering national champion into a general multinational firmÐŽ±. As a group we feel that this is an internal strength because Michelin has openly admitted that this is where they have gone wrong and we feel that this is the first step in sorting out their strategy. So Michelin are able to put steps in place to become a general multination firm and to stop acting as if they are the best.

Redundancy is seen as a very bad thing (As it will be for their employees who are made redundant) although for Michelin as they are in so much debt and are growing more and more further into debt. Redundancy will save Michelin a lot of money. So redundancy will help Michelin turn itself around. Therefore redundancy would be an internal strength because it would save Michelin a huge amount of money which Michelin really needs at the moment because of their huge financial difficulty Michelin is in at the moment.

In some countries where Michelin has no production facilities Michelin does