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 new automotive and light passenger tires at about 45% of the industry's revenue, followed by automobile parts, new and rebuilt, as well as new medium and heavy-duty trucks and buses, both accounting for about 15%. Maintenance and repair services account for about 10%, while retreated or used medium accounts for about 5%