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 the most important 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 represent 25 to 30% of the unit tire production volume each year. The Goodyear Tire & Rubber Company is a perennial leader among OEMs. In 1991, it captured 38% market share. Firestone and Michelin each had 16% OEM market share. The replacement tire market: The replacement tire market represents 70 to 75% of the total number of tires sold each year. Demand in this market is directly linked to the average mileage traveled per vehicle, and it should be noted that the better the tires (longer life), the less they need to be replaced. Goodyear is the perennial market share leader in the U.S. replacement tire market..