Abstract

Goodyear has been a dominant and profitable player in the Latin American tire industry for many decades. After Brazil, Mexico is Goodyear's second largest market in Latin America. However, its roles in the Goodyear global business portfolio are about to change dramatically. The year 1994 marks the beginning of a period of great transformations for the Mexican society, and profound turmoil to its economic system. The case is situated in the context of the changes that start in 1994 and culminate in the Mexican international bailout of 1995. The (A) case focuses primarily on the economic and market changes and their impact on Goodyear, while the (B) case unfolds in the context of the financial crisis and focuses on the company's market responses. 

 

Teaching
This case has been successfully used in International Business, International Marketing, and Managing in Emerging Economies classes. The case offers a rich context -international economics, country politics, economic development, and marketing - for heated debates in class. Ideally, the (A) and (B) discussion necessitates a full class period each. The (A) is more conducive to a detailed analysis of the situation and a discussion of Goodyear-Oxo options, and the (B) provides a fertile environment for the analysis of market and distribution strategies.

Case number:
A12-00-0015
Year:
Setting:
Mexico
Length:
22 pages
Source:
Field