In April 2021, CEO Florent Menegaux outlined his “2030 Vision” for Michelin based on balanced value creation for “people, planet and profit”, making sustainability a cornerstone of his strategy. In 2020, the company had again become the global leader of the tire industry after nine years in the number 2 spot behind Bridgestone, at a time when the major tire makers were responding to multiple pressures, including the rise of Chinese players, the growing trend for electric cars, and ESG demands from multiple stakeholders. The case discusses the market and industry dynamics, changes in the car and tire industries in response to demands to cut CO2 emissions, and Michelin’s strategy in tire sector and beyond in the coming decade.
The case allows for discussion of (1) the ongoing globalization of manufacturing and the consequences of global geo-political tensions; (2) the impact of disruption (caused by electrification/digitization) on car manufacturing and the consequences for tire manufacturers); 3) the integration of sustainability (both the demands and opportunities) into strategic decision making. The focus is on the leader of the industry and how it champions sustainability through its vision and actions.
- Geo-political tension
- sustainability and Competitive Advantage
- Sustainability and Customer Value
- Sustainability and Shareholder Value
- Decarbonization Strategy
- People and Planet and Profit
- Triple Bottom Line
- Electric Car
- ICE vs. EV
- CO2 Reduction Strategy