Auto Shack Business Analysis

John Wolf, president of Wolf Motors, had just returned to his office after visiting the company’s newly acquired automotive dealership. It was the fourth Wolf Motors’ dealership in a network that served a metropolitan area of 400,000 people. Beyond the metropolitan area, but within a 45-minute drive, were another 500,000 people. Each of the dealerships in the network marketed a different make of automobile and historically had operated autonomously. Wolf was particularly excited about this new dealership because it was the first “auto supermarket” in the network. Auto supermarkets differ from traditional auto dealerships in that they sold multiple makes of automobiles at the same location. The new dealership sold a full line of Chevrolets,

In order to answer the question as where AutoEdge fits in its industry in comparison to its competitors it will be helpful to look at market structure and the various areas or types of market structure. So what is a market structure? A market structure may be defined as “the characteristics of the market” (Whatiseconomics, 2014). The word characteristics is the key to fully grasping this seemingly simple definition of what market structure is. Market structure or the characteristics of the market can be sorted into two categories where one is organizational characteristics and the other is competitive

AutoZone as a vision defined clearly by a man named J. R. “Pitt” Hyde III. He received his undergraduate degree in economics from the University of North, Carolina, where he started working at Malone & Hyde, Inc., a wholesale food company founded by Hyde’s grandfather. Pitt initiated and developed Malone & Hyde specialty retailing division, starting with drug stores and expansions to include sporting goods stores and supermarkets (“Our History and Timeline,” n. d.).

Autozone was founded in the year 1979, in Forrest City, AR. At first, it was selling light truck and auto parts. Joseph Reeves Hyde III, also known as Pitt Hyde, was an American entrepreneur and philanthropist. He was born in Memphis, Tennessee. He was a spinoff of his family’s grocery

During the early years of work experience and the range of events that build characteristics would start during early childhood. Early on, our family would migrate north for summer work ever since the elementary age. During these years, our parents assumed the first lead of being our bosses. By honoring them, we discovered that we must work hard to get ahead, and reward for all current issues.

AutoZone is an aftermarket auto parts retailer headquartered in Memphis, Tennessee. AutoZone focused on the do-it-yourself weekend mechanic and small professional mechanic shops. It specializes in delivering low-cost replacement auto parts. AutoZone has many competitors, auto dealership parts counter, Advanced Auto Parts, O’Riley’s Auto Parts, Napa, and other discount auto parts stores, including online stores and junk yards. AutoZone strategy is delivering low-cost quality auto parts. As a weekend warrior, I have price compared between several auto parts stores when working on my dad’s old Ford. While price comparing, AutoZone was the cheapest of all the other auto parts stores. With the rising costs of automobiles and skyrocketing car loan

AutoZone was a vision from the mind of J.R. “Pitt” Hyde III after receiving his bachelor’s degree in economics. After receiving his degree he joined his grandfather’s wholesale food store Malone & Hyde’s retailing division. Pitt utilized the corporate profiled to identify several industries the wholefood store operated. The company incorporated drug stores, sporting goods stores, and supermarkets to operate in multiple unrelated industries (Parnell, J., 2016).” “Pitt saw a need for a retail automotive parts store to help with upkeep of their vehicle so he created Auto Shack (AutoZone, Inc., 2004 -2017).”

AutoZone has responded to the changes in its macroenviornment through the PEST (political-legal, economic, social, and technological analysis (Parnell, 2008). AutoZone had to face political-legal issues. One issue occurred in 2014 at a meeting when one of the members of its board of directors wanted to convince them to provide further details regarding their political spending. AutoZone’s board of directors responded by wanting its shareholders to vote against it (Meek 2014). AutoZone is actually in a good position due to the economy by to AutoZone being in auto parts industry. In a bad economy, people will most likely not purchase new vehicles. People will more likely keep the car that they already have which will eventually need repairs.

CarMax has a mission statement that says “To provide our customers great quality cars at a great prices with exceptional customer service.” The major goals of the company are to offer tens of thousands of used cars across the country, sell every car with a lo, no-haggle price, provide only vehicles of superior quality that meet their high standards, buy cars from customers, whether they buy from them or not and deliver friendly, on-of-a-kind customer service. CarMax does seem to live up to these standards based on all the awards the company has received such as the Gallup Great Workplace Award, 2008, 2009, 2014 and 2015, American Business “Stevie” Award, 2007, Best Overall Company, Best Place to Buy a Used Car –Charleston City Paper, Charleston,

AutoZone is aligning the firm to be an immediate go-to with larger corporations in efforts for a trickle down effect with its constituents. According to the case study “AutoZone operates about 4,400 retail auto parts stores in the United States and Puerto Rico, and about 250 in Mexico” (2014, p.366). Furthermore, the case study also reveals “AutoZone emphasizes internal growth by opening up an additional 150 to 200 store per year” (2014,

AutoZone is immune to economic downtown. The case study reveals, “AutoZone targets the DIY consumer with cars more than seven years old” (Parnell, 2014, p. 366). Consumers are not buying new cars during a recession; they are more than likely willing to keep their used vehicle maintenance, while skipping out on large dealership bills. Furthermore, in 2009, into the climax great recession of this century, Ad Age reported, “Consumers with less money in their pockets and more time on their hands because of the recession seem to present a big opportunity for do-it-yourself propositions such as AutoZone; while most retailers' sales were down, AutoZone's fourth-quarter same-store sales rose 6 percent, and earnings per share rose 21 percent” (Neff,

Founded in 1979 under the name AutoShack, Autozone has grown to become the leading retailer of automotive replacement parts and accessories in the United States, employing nearly 65,000 employees with over 4,800 locations in North America. After changing their name to Autozone in 1987, the company was able to implement the first electronic auto-parts catalogue in the retail industry, helping to establish their dominant position in the market. Because the firm was able to record steady growth for years, it was taken public in 1991, allowing it to be listed on the New York Stock Exchange (NYSE) under the ticker symbol AZO. Along with heavy investments in their retail footprint, Autozone had also developed a refined hub-and-feeder inventory system, keeping in-store inventory levels low while reducing the chance of stock outages. Because of their revolutionary electronic

AutoZone has been in operation for more than 30 years as a retailer of aftermarket auto parts and accessories. The company was originally launched in 1979 by Joseph “Pitt” Hyde in Forrest City, Arkansas under the name of Auto Shack (AutoZone, Inc., 2016). Hyde modeled the company after Wal-Mart where he worked for seven years on the board of directors. Although the companies name has changed, the same core values of quality merchandise, discounted prices, and good customer service apply to AutoZone. Over the years AutoZone has grown to be the leading retailer and distributor of aftermarket auto parts in the US including Puerto, Mexico, and Brazil. These parts include replacement parts and accessories for cars, trucks, and vans. Employees practice

The Global Purchasing and Supply Chain division was responsible for streamlining the supply chain and the year 2013 was a good one for the U.S. automotive market as sales rose 7.6 percent to 15.6 million vehicles. This is a substantial comeback from the levels of 2009-2010 when severe recession forced the bankruptcy of General Motors and other automobile companies and caused many other automakers to lose revenue and profits hence reducing labor and operation costs by massive worker layoffs and downsizing by closing manufacturing plants.

AutoZone began as an idea from J.R. “Pitt” Hyde III. Pitt opened Auto Shack a retail auto parts store on July 4, 1979, after seeing people needing help with the upkeep of their automobiles. In the year 1987, the name was changed to AutoZone, in 1991 AutoZone presented on the New York Stock Exchange. AutoZone is a Fortune 500 company operating in 48 states throughout America, It has locations in Mexico and Puerto Rico, employing around 65,000 people. AutoZone pledges always to put customers first, to know their parts and services and maintain a clean environment, stating they provide the best price and the right merchandise (autozoneinc.com)