Franchising

• Finally, recommend specific steps that VieTire can take to protect themselves from increased competition. Lay Out Your Thoughts • Specify what steps we must take to understand the cost differences now, and in the future, of VieTire and its competitors Dig Deeper: Gather Facts/Make Calculations • What would you say are the major costs associated with making a tire? Raw material comprise about 20% of the cost, labor 40%, and all other costs such as overhead 40%. The average…

Unfortunately, some companies have mismanaged their greatest asset—their brands. This is what befell the popular Snapple brand almost as soon as Quaker Oats bought the beverage marketer for $1.7 billion in 1994. Snapple had become a hit through powerful grassroots marketing and distribution through small outlets and convenience stores. Analysts said that because Quaker did not understand the brand’s appeal, it made the mistake of changing the ads and the distribution. Snapple lost so much…