Tire Dealers

Tire Dealers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate physical retail establishments that sell new and used tires; some also provide automotive repair services. Major companies include Discount Tire, TBC Corporation, Monro Muffler Brake, Les Schwab Tire Centers and retail units of manufacturers Bridgestone and Goodyear (all based in the US), as well as Beaurepaires (Australia) and Kwik-Fit (UK).

COMPETITIVE LANDSCAPE

Demand for replacement tires is tied to vehicle use, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Large companies benefit from economies of scale in purchasing and advertising. Small firms can compete effectively by serving a particular region, by specializing (such as in tires for high-end cars) or by joining purchasing/distribution networks. The US industry is concentrated: the 20 largest companies generate about 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products offered by tire dealers include automotive parts and supplies at about 60% of the industry's revenue, followed by new automobile and light passenger truck tires (about 30%). New medium- and heavy-duty truck and bus tires as well as maintenance and repair services, both accounting at about 10% each.