Tyre makers on the rack

Article Abstract:

The vicious price war among the world's leading tire manufacturers that started in the late 1980s has crippled the industry. Previously enjoying record earnings, top manufacturers such as Michelin, Pirelli, Goodyear and Sumimoto Rubber have collectively suffered a $2 billion loss since 1990. The European tire maker that was hit the hardest was Michelin, having lost six billion French franc in the early 1990s. Few sympathized with the French company's loss since it was Michelin that started the price war in the first place. A change in strategy enabled the industry to bounce back to profitability to 1992. The self-destructive practice of price cutting was dropped and focus shifted to restructuring and cost-cutting. The large amounts of money that they had lost seemed to have made the tire makers realize that they would never survive if they do not start concentrating on the bottom line.

Tires and inner tubes, Economic aspects, Prices and rates, Tire industry, Price cutting

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Philip's victory in adversity

Article Abstract:

The Dutch consumer electronics giant Philips Electronics has successfully overcome its financial misfortunes in 1990 by using a corporate strategy known as 'Operation Centurion.' With its Pres Jan Timmer at the helm of Operation Centurion, Philips has raised 1.2 billion florins (FL) in net profit based on a FL 57 billion turnover in 1991. Operation Centurion has facilitated financial recovery for Philips through the revitalization of a passive and languid corporate culture by instilling in the workforce a state-of-mind that is performance-based. Timmer has reduced bureaucracy, streamlined Philips through the divestment of poorly performing units, formed integrated business units for product development, and has plans for tapping the video distribution, software and active matrix liquid crystal display screen markets, as well as introducing new interactive television products.

Household audio and video equipment, Management, Netherlands, Consumer electronics industry, Koninklijke Philips Electronics N.V., Corporations, Company Profile, Corporations, Dutch

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