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Why do Successful Companies Fail?: A Case Study of the Decline of Dunlop

Lookup NU author(s): Professor Tom McGovernORCiD

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Abstract

This article examines the internal and external factors that contributed to the decline of Dunlop. For much of its history Dunlop operated in a protected home market or instigated strategies to restrict competition. This enabled Dunlop to dominate the British tyre industry. The complacency and inertia of management was exposed by a number of external jolts that produced radical environmental changes. Management failed to develop appropriate strategies which led to large losses in an industry suffering from overcapacity. Plant closures and the divestment of the European tyre operations were implemented to reduce company debt. This turnaround strategy proved to be a temporary respite as Dunlop was acquired by BTR.

Publication metadata

Author(s): McGovern T

Publication type: Article

Publication status: Published

Journal: Business History

Year: 2007

Volume: 49

Issue: 6

Pages: 830-851

ISSN (print): 0007-6791

ISSN (electronic): 1743-7938

Publisher: Routledge

URL: http://dx.doi.org/10.1080/00076790701710407

DOI: 10.1080/00076790701710407

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