Autozone's Business Model

As growth continued, AutoZone acquired several auto parts companies to expand. In 1998, Chief Auto Parts, a company mainly located in California was acquired and transitioned into AutoZone locations. Adap’s 112 Auto Palace Stores which was located in the Northeast

AutoZone is not immune to the economic downturns in the United States of America. However, AutoZone finds itself in a weird position whereby it experiences high-profit margins during the economic recession and low-profit margins during the economic boom. During economic downturns, you expect companies such as AutoZone to experience hard times during economic downturns. The truth is during economic downturns AutoZone makes profits compared to when there is an economic boom. The reason for this assertion is the fact that during economic downturn most consumers prefer to repair their cars rather than buying new ones as during such times buying a new car is not economical. This situation leads to companies such as AutoZone making profits during economic downturns as most consumers prefer repairing their cars rather than buying new ones.

As with any company, the AutoZone mission statement outlines their primary goals, objective, their focus and their purpose, while also providing a clearly defined direction for employees and customers. The AutoZone mission statement is "AutoZoners always put customers first! We know our parts and products. Our stores look great! We've got the best merchandise at the right price" (AutoZone, Inc., n.d.). As per company values, AutoZone continues providing the highest quality products available, with an unparalleled quality of customer service. This tactic retains the interest of both customers and stockholders.

AutoZone has been in the automotive aftermarket industry for over 30 years. AutoZone was created by J.R. “Pitt” Hyde as Auto Shack. Auto Shack was eventually renamed AutoZone, and is now a Fortune 500 company Today, AutoZone is the United States’ leading retailer of automotive replacement parts and accessories with more than $8.1 billion in annual sales. They sell auto and light truck parts, chemicals and accessories. There are AutoZone stores in 49 U.S. states plus the District of Columbia, Puerto Rico, Mexico and Brazil. They employ more than 65,000 employees. In addition, they sell automotive diagnostic software through ALLDATA. AutoZone has ecommerce capabilities through AutoZone.com and alldatadiy.com. Their number one priority is customer satisfaction, and they consider their best product “Trustworthy Advice” (AutoZone, Inc., 2015).

AutoZone capitalized on the growing do-it-yourself (DIY) segment of the market by offering a diagnostic test for the consumer’s automobiles. This

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.

In regards to the social changes the automobile industry is receiving from heavy feedback from their consumers. There is a need for automobile manufactures and engineers to create vehicles that environmentally friendly and conscious of their carbon footprint. The days of making huge gas guzzlers and air pollutant vehicles are long gone. In response to this social change outcry manufactures have stepped up to the plate, creating more hybrid and electric vehicles. For Autozone this could possible be unsettling, due to the fact that the technology that goes into creating and maintaining vehicles such as these parts will not be so easily accessed.

For example as AutoZone expands all over the United States it scans every environment to identify changing tendencies and decorations, watching over a particular tendency and decoration, and asses their business influence. In 1979 AutoZone opened their first store in Arkansas, and they started the company from scratch. They looked up to PEP boys though they were and are still strong competitors; they kept working hard in small margins and were very tight operators so that discipline helped them as they learn the business. Now AutoZone is now the nation’s largest retail auto parts chain.

AUTONATION, INC is one of the major players of automotive retail industry in the USA. It operates in an industry which is, as already mentioned, highly competitive. Other players are Lithia (LAD), Penske (PAG), Sonic (SAH), and Group 1 (GPI) that are well capitalized having extensive experience in the retail management, strong facilities and locations for retail.

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.

The automotive industry has been an iconic feature of the world. Every day, people worry about money and future but never know what to do. I myself was in that situation so I took a few days, sat down and looked at my life. I'm surrounded by cars, my family is all about vehicles. My world revolves around automotives so why not be a part in the advancement?

A good example is a children?s clothing store. They must be able to understand what has made their competitors like Carter?s and

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.