The Dynamics of Standing Still: Firestone Tire & Rubber and the Radial Revolution

Donald N. Sull

Business History Review, 1999, vol. 73, issue 3, 430-464

Abstract: Business historians have illuminated how first movers in many emerging industries secure an enduring leadership position, but have devoted less attention to the processes by which industry leaders relinquish their dominance. This paper examines why rubber industry leader Firestone Tire & Rubber failed to respond effectively to new technology and foreign competition. The author argues that Firestone did not respond by doing nothing, but rather accelerated activities that had contributed to its past success. Firestone's response was constrained by managers' existing strategic frames and values, and the company's processes and long-standing relationships with customers and employees.

Date: 1999
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