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Tire Dealers

Tire Dealers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate physical retail establishments that sell new and used tires; some also provide automotive repair services. Major companies include Discount Tire, TBC Corporation, Monro Muffler Brake, Les Schwab Tire Centers and retail units of manufacturers Bridgestone and Goodyear (all based in the US), as well as Beaurepaires (Australia) and Kwik-Fit (UK).

COMPETITIVE LANDSCAPE

Demand for replacement tires is tied to vehicle use, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Large companies benefit from economies of scale in purchasing and advertising. Small firms can compete effectively by serving a particular region, by specializing (such as in tires for high-end cars) or by joining purchasing/distribution networks. The US industry is concentrated: the 20 largest companies generate about 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Dealers sell replacement tires for passenger cars (about 50% of industry revenue) and commercial vehicles (20%). Other sources of revenue include service and parts sales. The industry includes tire-specific stores, automotive parts stores, tire departments of mass retailers, and a variety of automobile service centers. The majority of dealerships are independently owned, though many are franchises or owned by tire manufacturers.


Industry Overview
Quarterly Industry Update
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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