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Michelin Tires

The use of technology in business is essential to any company if it hopes to increase efficiency, make more profits, and become a market leader. Michelin is well aware of this fact and plans to introduce high-tech tires to rise to the top of the industry over its closet competitors; Bridgestone and Good-year. The move by Michelin to come up with a high-tech tire filled with a gel that allows motorists to drive even with a flat tire is a revolutionary one. However, the case study indicates that this tire will only be used on high-end vehicles such as the Cadillac and Audi A8. One of the reasons why Michelin will use the high-tech tire on upscale vehicles is to cover the cost of production. It is evident that the production of the gel-filled tire will cost more due to its durability; hence, the tire company will want to sell it at a price proportional to its costs. Buying upscale cars is quite costly; thus, buyers will not fret much over cost but will look at the benefit of driving even with a flat tire.

However, Michelin should not restrict the high-tech tire only to upscale cars. Every motorist has had to deal with the inconvenience of a flat tire even in the most challenging situations such as a lonely road or the middle of the night. The gel-filled tire would come in handy in such scenarios. Michelin should come up with a plan to roll out the tire to other types of cars as well because as production volume increases, economies of scale apply. Production costs will reduce allowing the company to reduce the price of the tires so that customers with cheaper cars can also afford the tire. The high-tech tire would bring such relief to people as they would never have to stop just because of a flat tire.