Bridgestone corporation's strategy Assignment Example | Topics and Well Written Essays - 250 words

Bridgestone corporations strategy - Assignment Exampleity of a firm to extend backwards into the sources and supplies of its strategic materials and/or forward into the supply twine outlets of the final product to the end users (Rudie, 2003). Bridgestone fraternity is one of the most vertically integrated companies in the cloy manufacturing industry. The Corporation engages in backwards integration through with(predicate) infixed manufacturing and production of key raw materials and intermediate materials used in the production and development of its strategic tire products. According to the 2014 Bridgestone data report, the corporation operates some(prenominal) plants around the globe, which engages in the manufacture and supply of raw materials and intermediate materials into the companys tire manufacturing plants (Bridgestone Corporation, 2014). The corporation has a total of 18 raw materials plants distributed across Americas (7), Europe(1), Middle East/Africa/Russia(1), Asia Oceanic(7) and Japan (2). The Saga plant, based in Miyaki-gun, Saga, is the Corporations leading manufacturer and supplier of steel cord material used in the development of the tire products. Other raw material manufacturing plants held by the subsidiaries include Bridgestone BRM Co., Ltd., Bridgestone Tread System Co., Ltd., Japan Mould Industry Co., Ltd., Bridgestone Plant, engine room Co., Ltd., and Asahi Carbon Co., Ltd (Bridgestone Corporation, 2014).The backward vertical integration strategy assumed by Bridgestone Corporation has enabled it to gain a competitive advantage in the global tire manufacturing industry. Backward integration enables the Bridgestone Corporation to ensure stability in the supply of high quality steel cord materials (Rudie, 2003). In addition, vertical integration enables the Corporation to focus on developing innovative raw materials for the development of the strategic tire products, and ensuring smooth running of its operations. Lastly, vertica l integration enables the Corporation to optimize its internal resources and