Continental Tires and the Global Tire Industry in 2016

The case describes the development of the German company, Continental Tires, subsidiary of automotive supplier Continental AG, the world’s most profitable tire-maker. The tires division is one of the few that has been able to grow its global market share while maintaining a high level of profitability. With “Vision 2025” – a strategic roadmap – Continental aims to establish a balanced global footprint and a “podium position” in technology while still enjoying excellent cost conditions. An overview of global industry dynamics, the segmentation of the market, and the key competitors can be found in the companion case “Michelin in China in 2016”. The Continental case can be used in conjunction with a series of other new cases on Bridgestone, Hankook and Apollo Tyres, that describe their respective business models and strategies.

The Continental case focuses on Conti’s business model and how it has been able to become the profitability leader while gaining market share. The case also sheds light on the broader trends in the automotove industry and ecosystem, the Vision of the parent company Continental AG, and the complementarity links with the Tires division strategy. More general, the case series allows an in depth analysis of globalization of markets and global competition, supply chain and ecosystem dynamics in a global setting, the strategy models of the new competitiors, and the strategic challenges global leaders face to maintain and extend their prominence and performance.