Trenco

Subject :

TRENCO

Words : 3 605

Executive Summary

The crisis currently facing the automotive industry affects not only the biggest names

in the industry, but also all companies orbiting. Among these companies, we can talk all

subcontractors arriving during the assembly line, but all the parts manufacturers. Among

these parts, we can speak of the tire industry. The big names in the industry (Michelin,

Pirelli, Goodyear, ...) are not much affected by the crisis because they knew diversified

their investments, attacking foreign markets (Asian and South American head). However,

smaller players have quickly felt overwhelmed. This is the case of Egyptian manufacturer

TRENCO, historic leader on the market, but failed to make the transition to globalization.

Michelin has decided to buy this great name, then we must offer him the best strategy to

implement to revive this old sleepy company.

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TRENCO is one of the most known manufacturers of tires in Egypt. It produces

several kind of tires, from the most common (tires for cars), to more specific ones (airlines

companies). Its best known product is still the NISR tire (which means EAGLE in English).

Created in 1956, "Transport and Engineering Company" is a company jointly owned

by the State of Egypt and "The Holding Company for Chemical Industries". Government,

as a shareholder and largest customer of the company, fulfilled the role of guarantor to

citizens and consumers, which made TRENCO quickly entered the collective

consciousness as a safe and reliable brand. Also, the fact that the government is a financial

interest in the structure, made him take protectionist measures, which made for a long time

that TRENCO remained the only major player in the tire industry in Egypt, undergoing

indirect competition from the price level of foreign competition.

The company has several buildings on Egyptian soil. Its headquarters and its main

factories are located in Somoha, within the Alexandria...