San Francisco Tire Industry Analysis

San Francisco Tire Industry

The tire industry is among other vital industries that contribute an extensive amount of income to the global economy. Some of the countries substantiating this are U.S.A, China, Japan and France. The industry involves assembly and compaction of several components, production and marketing high-frequency and operational tires to its target groups. This perspective contextualizes on the industrial output in the U.S., especially in California, San Francisco. San Francisco has recorded an exponential growth from increasing input, output as well as increasing career opportunities in different and related fields of tire production. Some of the plants producing tires in San Francisco include the Wheelworks, Big O. Tires, and South San Francisco Plant. It is, therefore, vital to analyze the externalized and internalized factors that regulate the industrial trend in tire production and sale.

External Analysis

This is a close examination of the factors that counter-balance the productivity strategy of the tire industry in San Francisco. This is mainly form a macro environment aspect that includes ecological-economic, technique, legal and socio-political factors. These factors are irrepressible and, hence are to be closely monitored and adopted accordingly in order to extract a significant growth.

a) Legal environment

Tire products are closely monitored and inspected by federal law organizations such as The Brady law Group and The Willis Law Firm. Companies in the area are necessitated to acquire necessary legal licenses by the government ministerial offices and the local council. The general Federal law demands that plants not only manufacture, but also revamp or reinstate tires produced within five years of defection or noncompliance determination. The law ensures that liability is accounted for accordingly while undergoing the production or replacement of the tires.

b) Technique environment

Technique used in tire production overlooks technological developments used by plants in producing high quality tires. According to San Francisco's plants, the scientific processes mainly incorporated are polymerization, compression and compaction of raw materials. The high-tech industrial production of tires in San Francisco plants has revolutionized technologically through use of homogeneous processes and machinery. Plants in the area have kept a high profile in maintaining modernized technology in tire productions.

c) Socio-political environment

Socio-political ties in San Francisco greatly affect the production of tires by affiliate companies. This is mainly because the factor defines customer's preferences to the market as well as the market trends surrounding the sales of the tires. The industrial progress in the production of tires in San Francisco is faced and influenced by political and more so, social classes among people. Resultantly, many plants have surfaced strategies to segment their market of the tires produced; to ensure that the social and political issues amongst demography do not undermine the production rate and market and distribution across California, the States and the external market.

d) Ecological-economic environment

The ecological-economic environment in San Francisco surrounding tire production is balanced. Demand for the tires is exceedingly rising, as the purchase of autos increases. Resources necessary in the utilization of production apart from technology are necessitated, such as staples and labor. Availability of main raw materials, rubber and carbon is steady. Several neighboring states produce large scale carbon that San Francisco plants input at reduced costs as compared to importing the product. Production and cost of the raw materials and other factors such as their transportation is efficient across California. Labor provision to the plants in San Francisco is abundant; from manual personnel, operational staff and the subordinate staff. Economically, the incomes input by the customers are steady, hence stabilizing the economic gain of the industry. However, the industry was challenged by the unbecoming recession in the car industry in 1990 that reduced the gain from the existing inter-industry relationship. The tire industry as well as other industries in San Francisco, encounters economic challenges resulting from the weakening of the dollar.

Internal Analysis