The creation of modern capitalism

Dunlop Case Study

Why Dunlop Failed

Dunlop is a British tyre manufacturer . The company had a strong start at the early 20th century and was among the largest British companies However , Dunlop would start to face challenges as other tire manufacturers from the United States and in Europe start to emerge and demonstrated competitive advantage over Dunlop . From then on , the company would start to struggle in the next decades . However , according to McGovern (2007 , the reason for the company ' failure was complex and inter-connected (p . 899 . From this , the following

are the identified reasons from McGovern (2007 ) as to why Dunlop failed

Resistance to market competition - the government found that it would be important to protect its domestic market , and as a result , it implemented means to prevent free market competition . Dunlop found this threatening especially when the American tire manufacturers started to set its sights on the British market , especially as these American companies had a strong domestic force due to the local automotive market and industry that was booming . The problem with this move by the government , and even by Dunlop which can be observed to have also wanted this , was that they saw the aspect of competition as a threat and not an opportunity . Evidently , as firms face competition , this would give way to the firms to become more innovative , thereby increasing its competitiveness and improving on its core competencies (Verhees Meulenberg , 2004 Drejer , 2002

Resistance to flexibility - Dunlop also demonstrated a focus on ly marketing...