Bridgestone 2002 Annual Report Download - page 11

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“We now have a real chance to increase our share of the European market significant-
ly,” declares Bridgestone Europe CEO Shoshi Arakawa (
left
). “For years, Bridgestone
took a piecemeal approach to the European market. But the world’s most competitive
market for tires requires a serious, comprehensive commitment. December’s announce-
ment signifies that we now will have the right marketing, the right manufacturing, the
right technology and—most important—the right strategy to succeed in Europe.”
The December 2002 announcement to which Arakawa refers detailed a greatly
stepped-up commitment to Europe. A E400 million ($416 million) infusion of capital
from the parent company will help pay for upgraded production and R&D and for other
measures to strengthen Bridgestone Europe’s operations. Bridgestone Europe will bol-
ster its retail marketing effort with a pan-European advertising campaign. That cam-
paign will reinforce advertising for individual Bridgestone- and Firestone-brand products
with a powerful corporate message under the Bridgestone name. The corporate message
will emphasize Bridgestone’s leadership in technology, as demonstrated by success in
Formula One racing, and it will foster marketing synergies among products and among
nations.
Bridgestone’s strategy for Europe focuses relentlessly on high-value tires: high per-
formance and large sized. Ongoing investment in Bridgestone Europe’s state-of-the-art
Poznan Plant will help ensure ample supplies of those tires. And a proving ground under
construction near Rome will make the company more responsive to European demand,
especially in high-performance tires. Further evidence of the Bridgestone Group’s redou-
bled commitment to Europe: the acquisition of an 18.9% equity stake in the Finnish tire
company Nokian Tyres in early 2003.
First Stop is becoming a familiar provider of
quality tire and automotive service in Europe.
That is the name of Bridgestone Europe’s grow-
ing network of family channel retailers. More
than 1,000 independent retailers throughout
Europe participate in the First Stop network.
Management at Bridgestone Europe aims to
increase its network of affiliated retailers of
passenger car tires to about 1,600 outlets by
2008. In addition, Bridgestone Europe operates
a retail network of about 230 company-owned
stores in Spain, France, Germany, Switzerland
and other nations. The company has an exten-
sive network of truck tire dealers, too, which it
is strengthening steadily.
09