Auto Zone Industry

To be a productive and active citizen in the modern world nearly requires access to a reliable automobile. We use our vehicles to get to and from work, to bring our children to school and other events and to travel about our communities. The vehicle has permeated so many aspects of our lives that sometimes it is easy to forget the extent to which we rely on it. Because of this reliably and because of the necessity of a working order automobile to get things done, it is of supreme importance to work to maintain your vehicle. None of us likes to be the person stranded, prior to an important appointment, because of an automotive issue. For these and other reasons, it is important to consider carefully an automotive service provider.

I wanted to write about Autozone because I love cars. Ever since I was small, I used to watch the Cars, the movie from Disney, and it made me interested in cars. One day, when I was around 6, my step-dad’s cad broke down and we had to go to AutoZone to get the car repaired. I was intrigued by the person who worked there because there were alot of parts for a car and tools to fix it. Ever since, I wanted to build or even fix a car at Autozone-if I can anyways.

- exporters - they buy from co-operatives or sales and then sell to dealers. Their expert know-ledge of the local area and fabricators generally enables them to assurance the quality of the

I would define Autozone in the automotive industry based off the primary products they retail. I would include the dealership and the fellow discount automotive stores in this industry as well. Industry is defined as a group of competitors that produce similar products or service ( Parnell, 2008 pg 38). By this definition dealerships and aftermarket automotive discount stores would fall under this category. When a consumer thinks of a dealership they immediately think of purchasing a new or used vehicles, this assumption is a valid thought. The dealership offers so much more than new or used vehicles, in fact dealerships offers car washing (detailed), collision repairs, and parts and services on vehicles.

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 founded by J.R. Hyde III. Opened Auto Shack in 1979, an automotive parts store. Autozone became the official name in 1987. Hyde built his business on the big box stores business model and focused on smaller trade in the South and Southeast, highlighting service and every day low prices. The auto parts retailer experienced early success and grew to nearly 200 stores by 1984 (Parnell, 2014). AutoZone operates eight distribution centers in the U.S. compared to 28 facilities for O’Reilly Auto Parts, one of its principal competitors (Memphisdailynews.com, 2015).

Yes, I would include new car dealerships and discount stores in the same industry. New car dealerships

All too many times individuals will misconstrue the definition of the word industry, in considering that a single business is the industry. However, Parnell (2008) defines the term industry as “a group of companies that produces competing products or services” (p. 38). For example, the local pizzeria would not be a representation of the entire pizza industry, but rather being a part of the food industry. Now that the terminology is understood, it is time to define the type of industry in which AutoZone is within. According to AutoZone, Inc. (2017) the organization serves in the automotive aftermarket industry. The automotive aftermarket industry simply is explained as a secondary market that specializes in the refurbishing and selling

Clearly determining the appropriate industry designation begins with ascertaining existing rivalries (Parnell, 2014). Other auto parts stores, such as Advance Auto Parts, Discount Auto Parts and O’Reilly’s are the closest competitors because they primarily sell auto parts. On the other hand, Walmart

In reviewing the case, I would define AutoZone’s industry as an industry that primarily focuses on selling replacement automotive parts as well as accessories for the consumers that are “do it yourself”, which would fall under the category of the automotive aftermarket industry. The aftermarket industry includes supplies accessories, spare parts, second-hand equipment, and other goods and services used in repair and maintenance (Business Dictionary, 2017). In some aftermarkets, such as those for automobile add-ons, parts, tires, wheels, are very large also called replacement market or secondary market. I believe AutoZone would be considered secondary to the automotive manufacturing industry, which currently AutoZone is considered to be the

Worrying whether or not you were overcharged for your car repair is an awful feeling. There's tons of advice on how to avoid getting ripped-off, but few discuss the actual car repair prices. We really need to look at the charges on a car repair estimate or auto repair invoice to determine if we're paying too much.

A case brief on AutoZone,Inc is being presented in this article. The paper briefly discusses the history and progress strategy of the company so far. The main idea of the paper is the dilemma faced by a portfolio manager- Mark Johnson- and the wise decision he could make in order to safeguard his client’s portfolio. The paper examines the current position of AutoZone in the market and its growth potential which would help Johnson in making his decision.

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)

For example, local new car sales fluctuated greatly just in the two years between October of 1987 and October 1989 [SEE EXHIBIT 6]. The average net profit before taxes in 1979 was approximately 2.5% of sales. By 198l that number had dropped to 1.16%. and 4000 dealerships had folded. By 1987, however, profits reached a high of 2.16% of sales. In 1989, with profit before taxes at a dismal 1.3% of sales and falling, the shadow of a recession in car buying loomed dark and ominous. The average gross profit as a percent of sales also indicates a bleak outlook [SEE EXHIBIT 5]. In 1988 the top 100 megadealers in the U.S. controlled nearly 13% of total new car sales. It is estimated that if current trends continue, up to 25% of those megadealers will go out of business (Spinella, 1988). Current State of the Industry The new and used car industry in the U.S. is composed of 25,5OO dealerships owned by 17,800 dealer principals, quite a change from 28,350 dealerships owned by 25,100 dealers in 1979 [SEE EXHIBIT 2]. The recession of the early 1980 's prompted a number of more stable dealers buy those dealerships which were in financial trouble. Currently, nearly half all dealerships are a part of a chain of two or more dealerships, and nearly 20% are part of a chain of four of more dealerships. The total industry sales in dollars in 1988 (the most current available data) were $303,235,000,000. In terms of unit sales, the approximate number of new vehicles sold

By buying their parts in a higher volume (one central order for all four dealerships) they can negotiate a better price. This would facilitate greater leveraging with suppliers for consistent quality-control.