After reviewing Goodyear's options, I believe it is best for Goodyear not to partner with Sears. When considering this partnership it is important to understand the tire industry, particularly the replacement tire market. The tire industry is divided into two end-use markets: the original equipment (OEM) tire market and the replacement tire market. The replacement tire market is of utmost importance in this case because it is Sears' target market. The two markets are divided as follows: The original equipment market: OEM tires are sold by tire manufacturers directly to automobile manufacturers and account for 25% - 30% of tire unit production volume each year. The Goodyear Tire & Rubber Company has always been an OEM leader and in 1991 achieved a 38% market share. Firestone and Michelin each had an OEM market share of 16%. The Replacement Tire Market: The replacement tire market accounts for 70% - 75% of the total number of tires sold each year. Demand for this market is directly related to the average mileage driven per vehicle, and it should be noted that the better the tires are made (longer tread life), the less need for replacement. Goodyear has long been a market share leader in the U.S. replacement tire market.