Tokyo – Bridgestone Corp. is marking 2020 as a turning point in its operations as it strengthens focus on ‘sustainable mobility and advanced solutions’.
The Japanese tire & rubber group unveiled a new “mid-long term” business strategy framework on 8 July, which it said sets forth a forward-looking vision to 2050 and beyond.
Billed as ‘third foundation’ or Bridgestone 3.0, the vision aims to see Bridgestone strong in its core tire & rubber business and in parallel “fundamentally change the playing field” by developing solutions and platforms.
Prompted by the ‘deterioration of entire tire industry profit structure’, the new strategy offers ‘bold and radical’ responses in anticipation of industry changes, said a Bridgestone presentation.
The move, it added, is expected to change the group’s profit structure and increase profit pool in the automotive industry from $226 billion (€200 billion) in 2017, to $380 billion in 2035.
With the mission of "serving society with superior quality," the blueprint will see Bridgestone providing “social value and customer value as a sustainable solutions company.”
As part of this, Bridgestone said it would leverage sustainability “as a competitive advantage and core to all aspects of its business.”
In addition, the Japanese group will aim to enhance its solutions business through the group’s T&DPaaS (tire and diversified products as a solution) platform which supports the mobility ecosystem.
This, said the presentation, could include transforming the group’s services from repair to maintenance; creating value for OEM partners and shifting to a lease/subscription model.
In addition, the group will reinforce its ‘real and digital’ efforts by creating connected and open systems.
As an ultimate goal, Bridgestone will look to move from a product-orientated business to ‘creating and selling value as a system’.
The Japanese group refers to its 1931 establishment as original foundation. The group’s move towards globalisation through the acquisition of Firestone Tire & Rubber Co. in 1988 marks its second foundation.