Business Case Studies, Innovation and New Product Development Case Study, Michelin's PAX Tyres: Radial Type Innovation?

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Case Title:

Michelin's PAX Tyres: Radial Type Innovation?

Publication Year : 2004

Authors: Mercy Mathew & Daksha Bhatt

Industry: Automobiles

Region:France

Case Code: IPD0011

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In the mid-1940s, Michelin, the number one tyre maker in the world, had revolutionised the tyre industry with radial tyres. Half a century later it commanded nearly 100% market share in the industrialised world. In the mid-1990s, the company came up with another big innovation­­­­­ – the PAX system. PAX tyres were designed to provide the car driver with smooth mobility and control over the vehicle even in the event of a sudden loss of air pressure in the tyres. But, they could only be fitted to vehicles designed to support the PAX system and their cost was three times more than the conventional tyres.

Pedagogical Objectives:

  • To discuss the technology behind the new product and marketing strategy adopted by Michelin in promoting PAX
  • To discuss whether PAX was in line with Michelin's radial tyres type innovation and whether it was the future of tyres or just a passing fad.

Keywords : Tyre industry, Michelin, PAX systems, Radial technology, Tyre technology, Self-sustaining tyres (SST), Consumer behaviour, Marketing Strategies Case Study, Original equipment manufacturers (OEM), Innovation, Goodyear, Pirelli, Sumitomo, Toyo Tyre & Rubber

Contents:

  • Introduction
  • Background
  • Michelin's new PAX tyres
  • Is it the future or a passing fad?

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