The market which would be analyzed in detail would be the Chinese market which is a source for immense attraction for any global market since not only has the market developed to a great deal but the booming population is a sure shot huge sales revenue.
If one was to analyses the tire industry as an industry in it, it would mean looking at the rate of at which the tires are being bought and sold within a time period. If one was to analyze the tire industry all over the world, what would come across would be a substantial or rather exponential increase in the global tire industry. The global tire industry has experienced as of recent a stage of stable growth which has had positive effects for those companies which want to venture into other markets.
The sales trend form 2003 to 2006 alone was of an increase of around nine percent which means that the industry grew at quite a steady rate. As for any downturn in economic downturn, the global tire markets have always shown to start a new round of readjustment.
The sales value of the world’s 75 top companies has accounted more than 97 percent of the World’s total. These companies have highly contracted production methods and the entire global market is in effect controlled by these top 75 companies. In the case of the Chinese market, and what has been its impact on the global market and what it could mean for Continental Tires, a number of factors would need to be looked at.
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