competing largely on the basis of price, durability, and brand
awareness. The dealer and distributor structure is well known. The
industry practice is to sell the product to original equipment man-
ufacturers (OEMs) and hope that owners will use the same type of
tires when they are ready to replace them. The business model has
remained the same in the industry for decades. This is a traditional
business model that is firm-centric and product focused. Should
this industry remain this way, or can it become a “high-tech–
high-touch business”?
Consider an alternative in which the manufacturers do not sell
tires but charge for services. They contract with ...