Essay Sample on Discount Tire

Paper Type:  Essay
Pages:  3
Wordcount:  595 Words
Date:  2022-10-25


Discount Tire was founded by Bruce T. Halle where he was the only employee. The company grew from a single store to the largest independent tire and wheel retailer in America with one thousand stores in thirty-four different states. The company's founding principles are treating people with respect and fairness, caring for those in need, always doing what is right, and working hard.Discount Tire motive to invest in Kenya is because it is among the developing countries in Africa, surrounded by protected wildlife reserves and national parks, has the largest economy in eastern and central Africa through the generation of income from agricultural and tourism sector, and transport and other infrastructure sectors have majorly upgraded. Kenya does not have an automobile manufacturing company and therefore it imports and sell second-hand, worn-out tires at a low price. Kenya is a promising tire industry company as it offers considerable potential for new vehicle sales because of the developing roads; therefore, Kenyans will need durable tires. However, the strategic challenges that Discount Tires will face include the high poverty level, their lead tires supplier are China who sells at a lower price than the price of Discount Tires.

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The market risk analysis shows that Kenya is the right country to invest in as it has a formal and stable government making it safer for investors. Economically, a study indicates that Kenya's economy mostly consists of agriculture and service industries which make up roughly 83.2% of its economic output according to the Central intelligence agency (CIA). China invests in building infrastructures in Kenya and also, countries from the European Union have decided to invest an addition of 56 billion in funding for infrastructure making it evident that these countries are confident and have optimistic view for business growth and opportunities in Kenya. Politically, Kenya has various ethnic groups which could make advertising and educating people about the investment value of our products more difficult due to the differences in customs or languages. Technologically, Kenya has limited technological experience due to the lack of infrastructure in the country. One of the considerations in marketing Discount Tires' products is that most of the people in Kenya use mobile phones and radio unlike most of the developed countries.

The target markets of Discount Tires are business and upper-class citizens in Kenya because businesses have more substantial capital than an individual and would, therefore, be able to spend on a product they could see as reducing the cost purchasing fewer tires and spending more in the short term to saving in the long run. The upper-class people can buy our products more efficiently to avoid buying tires repeatedly hence saving their time and cost. The current competitors are the Chinese who supply second-hand tires with low quality at a lower price. The potential competitors are the threats of new entry, the supplier power, buyer power, competitive rivalry, and the risk of substitution.

Our global competitive strategy is that we are providing customers brand new tires that will last a lot longer than what their tires do now. Our strategic position is hiring local people to market our product to the businesses and upper-class people. Our entry mode is to explain the advantages of the Discount Tires over the second-hand tires from China. We will use a well-developed and structured control system to link us with our employees. We will supply our product to the large retail stores in Kenya at a very convenient price ranging from $125 to $250. Businesses and other buyers will make their orders from the distribution centre or our online website.

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Essay Sample on Discount Tire . (2022, Oct 25). Retrieved from

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