AGNELLI TYRES:
- To become more competitive, AT will need to offer customers something that they will value over and above what rivals give.
- If AT can off lower prices than rivals can for similar tyres, this will improve their competitiveness in world markets but the ability to lower prices will depend on costs of the business.
- Lower prices will reduce profit margins and it may not be possible if AT already operates on low margins.
- Improved quality of raw materials
- Create a USP eg only sourcing from ethical suppliers
- Improve the way the tyres are made - more mechanics/technology to create economies of scale.
- Advertising campaign, though this could be expensive.
AS Plc should carry out market research.
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