Apollo Tyre Case study

Purpose of the Case Study

1. How to track and identify opportunities and threats in the macro-environment.

2. How to assess the importance of demographic, economic, political and technologica factors.

3. How to sustain, survive and grow in the changing business milieu.

                                               Introduction

> One of the leading tyre  companies in India.

> Turnover of Rs. 2600 crore

> 2nd largest in the country

> 17th largest in the world.

> Major Competitors – MRF, Ceat, JK Industries.

                                                         The Indian economy

> Significant reductions in tariffs and other trade barriers.

> Significant adjustment in govt. monetary and fiscal policies.

> Reform and modernization of the financial sector

> Liberalised foreign investment and exchange regimes.

Macro factors selected for econometrics

> Year ( time)

> GDP Absolute

> Inflation

> Road length

> Index of industrial production  (IIP)

> Service Sector Contribution

                   Strategies to stay in step with the changes..

> Go according to the customers’ tastes and preferences.

> Youth population is increasing –Can go for campaigns attracting youth too go for DRIFTING, RACING, where tyres  are a significant driver.

> Have tie ups with automobile companies.

> Can have tie ups in the rural areas where consumption of the two wheelers  as well as tractors is increasing at an enormous rate

                                   Straws to the winds

> If Apollo tyre makes tie-up with the various automobile industry then in the long   
   run it will serve to the company .

> For example: Hero Honda Motors has tie-up with MRF tyres and TVS Tyres.