lacement tire market. The other two companies, Goodyear and Michelin, both sell to the original equipment market as well as to the replacement market.
Within the original equipment market, the number of tire companies was halved between 1981 and 2001, although the brand names remain in use. Goodyear and Dunlop combined into a single company that kept the Goodyear name but markets both tire brands. Michelin (a French company) bought BF Goodrich and Uniroyal, while Firestone and Bridgestone also became one company. Continental and General also combined, and Pirelli became part of Pirelli Armstrong (Michelin Fact Book, 2001, p. 8).
On a global level, Goodyear and Michelin accounted for more than 37 percent of all tires sold in 2001 with Bridgestone accounting for another 19 percent (Michelin Fact Book, 2001, p. 7). Goodyear and Michelin both compete in Asia, Europe and the United States; while Cooper has a small European presence, the majority of its product is sold within the United States. It is within this highly concentrated and highly competitive international environment that the strategies of the three companies must be evaluated.
As already noted, Cooper Tire & Rubber participates in the replacement tire market, but it also receives a significant portion of its revenues from automotive parts. Specifically, the company produces hoses and hose assemblies, vibration control systems and fluid handling systems. The company's two strategic business units, tires and automotive parts, are both based on rubber materials. The automotive part of the company's business was strengthened in 1999 when it purchased Standard Products. The company pursued a growth through acquisition strategy during the late 1990s and early 2000s. In addition to Standard Products, Cooper also purchased Siebe Automotive, a fluid handling company ("Cooper Tire & Rubber," 2001).
The gradual lessening of the company's dependence on tires can be s...