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Running head: ANALYSIS OF PORTER’S FIVE FORCES 1

Proposal to the Company “Goodyear Tire and Rubber Company”

Analyzing Porter’s Five Forces to Align the Operational Needs with Business Strategies

Proposal to the Company “Goodyear Tire and Rubber Company”

Analyzing Porter’s Five Forces to Align the Operational Needs with Business Strategies

Porter’s Five Forces

Five competitive forces of Porter is a strategic leadership tool to examine a company and

learn underlying tools of profitability. The company Goodyear Tire & Rubber leaders can utilize

Porter's Five Forces to explain how the rival forces affect operational activities and they also can

form business strategies for improving the competitive advantage of Goodyear Tire & Rubber.

An Analysis of the Company Based on Porter’s Five Forces

Five competitive forces of Porter is an approach structure that led strategic decisions

from only examining the current competition. An analysis of The Goodyear Tire & Rubber

Running head: ANALYSIS OF PORTER’S FIVE FORCES 2

Company based on Porter's Five Forces shows that how the company can create a competitive

advantage in the industry of Rubber and Plastics.

By investigating the five forces of competitiveness, The Goodyear Tire & Rubber

Company leaders can get a full idea of what influences the profitability of the company. They

can recognize game-changing inclinations ahead and can quickly react to utilize the opportunity.

The Goodyear Tire & Rubber Company's leaders can develop those powers in their support by

the Porter Five Forces in detail.

An Analysis on the Effectiveness of the Leadership Model the Company Is Currently Using

The current Leadership Model of the Company is effective for the strategies and business

plan they had made. But for maintaining this competitive advantage, leaders of this company

should include these business strategies such as Money is king and not a client, Lower cost

approach, Brand construction, expanded distribution, Product Leadership, Leadership. Leaders

and managers at The Goodyear Tire & Rubber can't only use this approach to generate a strategic

place within the industry yet further can examine successful opportunities in the entire sector of

Consumer Goods.

Consider the Current Leadership Style or Styles in Place at the Company

The current leadership style is effective for the operational needs and strategies the

company had. But in order to achieve the competitive advantages goals in the growing

competition in the industry, they need to modify few styles and attitudes towards the strategies.

Running head: ANALYSIS OF PORTER’S FIVE FORCES 3

Determine the effectiveness of the leadership style/s and whether an alternative style/s

would be more impactful.

From the verdicts of the analysis, this can be understood that leaders should proceed to

give effective participation in the strategy of market evaluation for the company to improve

competitive advantage. Effectiveness of the leadership style will be achieve if they concentrate

on these three fields to that are Knowledge, Branding, and Technology administration directing

to innovation, it would be more impactful. Technology, particularly IT in goods and method

modification, is developing as a great facilitator of business innovation in both business and

personal businesses. For instance, in the rubber industry, various companies presently recognize

the versatility of main product characteristics as a significant rival influence. The strength of a

company is to give characteristics as manageable prices based on whether its network systems

have been created so that they can be immediately adjusted to assist fresh segments in the

market.

Assess how to determine effective leadership. What makes a leader effective or ineffective?

● A leader is effective if he or she succeeded to create a trust system. He or she should be able to

communicate the philosophy and mission statement of the company that gives fundamental

importance, design, regulation, and the wanted level of achievement. In The Goodyear Company,

it should be enhanced. ("Goodyear Strategy Roadmap | Goodyear Corporate", 2021)

● A leader is effective if he or she succeeded to create periphery policies (Amrollahi & Akhgar,

2013). In this, policies guarantee that business actions happen in a fixed product market at a

satisfactory risk level. This also should be enhanced in The Goodyear Company.

Running head: ANALYSIS OF PORTER’S FIVE FORCES 4

● A leader is effective if he or she succeeded to create an ability and solution. Displaying the

ability and capacity to manage subordinates is important. This also should be improved in The

Goodyear Company.

● A leader is effective if he or she share Knowledge. Collecting, receiving, transporting

product/service knowledge among the company and clients, suppliers, and workers to reach the

company’s goals is important for an effective leader. This is achieved in The Goodyear

Company.

Consider sources of managerial power when leaders are effective.

If leaders of a company are effective then the managerial powers should be referent

authority, expert authority, coercive control, compensation control, and authorized (or legal or

bureaucratic right).

Leadership Model Changes

For competitive advantage to be maintained in the company, it will be necessary for

leaders of Good year to be developed both in strengths and attitudes so that leaders can satisfy

the requirements of clients in a scheduled period. Competitive advantage for the company can

get from more reliable products such as tires, assets, competencies, costs, perceptions of

customer, attitudes, and associations, etc. An important concern for the leadership of the

company is guaranteeing that it is maintained. It will bad for the leadership role of Goodyear if

leaders lack the basic competitive attitude to generate opportunities and growth for the Good

year company.

2- To 3- Actions Needed To Align Operational Needs with Business Strategies

Running head: ANALYSIS OF PORTER’S FIVE FORCES 5

As we discussed in Week 1 that Goodyear Tire has to face a lot of competition. In such a

condition, the company needs to utilize the new advertising tools and platforms like social media

advertising and digital platforms to propagate the products and their high quality along with

decade long creditability of the brand (Bloomberg, 2021). In order to execute this, there should

be the application of modern technology that gives new entrants to the rubber industry an

opportunity to rethink the whole worth proposal given to clients. While the proposal presented to

customers through old corporations is usually patterned, a new entrant can utilize exceptional

computing technology to give extra carefully targeted proposals. A recent trend in actions needed

to regulate operational needs with business strategies is knowledge management.

References

Amrollahi, A., & Akhgar, B. (2013). Analyzing Open Source Business with Porter’s Five

Forces. International Journal Of Computer Theory And Engineering, 162-165. doi:

10.7763/ijcte.2013.v5.669

Bloomberg. (2021, January 31). Goodyear Tire & Rubber Company. Retrieved from Bloomberg:

https://www.bloomberg.com/profile/company/GT:US

Goodyear Strategy Roadmap | Goodyear Corporate. (2021). Retrieved 3 March 2021, from

https://corporate.goodyear.com/en-US/about/mission.html