Contents Industry Context and Apollo’s Strategy 2 Key Industry Trends 2 Consolidation 2 Western Profit Pools 4 Emerging Market Growth 5 Low Cost Manufacturing 6 Higher standards 7 Opportunities for Growth and Profitability 7 Mature markets 7 Emerging Markets 8 Competitors Actions (2011 – 2013) 8 Yokohama 8 Hankook 8 Bridgestone 8 Continental 8 Michelin 9 Strategic rationale for acquiring Cooper 9 Market presence 9 Performa of the combined company 10 Scaled global footprint 11 Complementary Strengths 12 Value creation 13 Significant Growth opportunities 14 Strategic Fit 14 Global Supply Chain 14 Branding and Distribution 15 R&D and Technology 15 Market Share 15 Industry Context and Apollo’s Strategy Key Industry Trends In this section we will see how Apollo strategy of acquiring Cooper tires fit into the prevalent industry trends of tire industry. Majority of tire industries are expanding their facilities to cash in on the increasing demand in emerging markets. They are also focussing on shifting their production in the low cost countries and increase their spend on R&D to have higher standards. Consolidation The combining of several industries to come together to form a large company typically form a large company and grab market share. The Endgame curve The curve tells where particular industries are on the curve and for what reason. Opening stage Start-up and spin-off industries and industries that are regulated or protected by tariff barriers or foreign ownership