Autozone's Primary Industry Analysis

At first look, many people would have said that Autozone is part of the automotive parts industry. The problem with this is that many retailers fit into this category to various degrees much Walmart that sell automotive parts to gas station that just sell brake lights. Though, these companies provide some degree of competition within Autozone’s industry. The reality, this industry is defined by Autozone’s target marketing segment, which is the D.I.Y automotive repair consumer and the competitors that target this marketing segment. At Least, those competitors that specifically takes market share within this market segmentation

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’s strengths are its financial stability that has allowed it become the leading automotive aftermarket retailer. As of May 2016, AutoZone has over $10 billion in sales and over 80,000 employees. Other AutoZone strengths include its over 4,400 locations and its growing numbers (“AutoZone Forbes”, 2016). Also the organization has the ability to provide products for several automobile brands which diversifies its portfolio. Some of AutoZone’s weaknesses includes profitability during a rise in the economy.In the past, it has not met targeted financial goals due to its weakness in commercial repair sales. In 2014, only 17.5% of AutoZone’s 2014 sales were commercial repair, compared to its competitors Advance Auto Parts and O’Reilly Automotive

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).”

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Auto Zone’s industry would be the aftermarket parts industry. This industry would include the wholesale and retail sales of vehicle parts, tools, accessories, and fluids mainly for automotive use. A wide array of stores sell these products either online or at their brick and mortar locations. Some of stores include, Advance Auto Parts, O’Reilly’s Auto Parts, NAPA, Wal-Mart and Amazon.

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

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,

AutoZone industry would be made up of auto parts, automotive accessories, and maintenance items for vehicles to be used by the person who does the work themselves or a professional who needs parts for their shop. Diagnostic testing is available for alternators, batteries and starters, using ALLDATA software to zero in on what needs to be repaired but you cannot buy tires nor will AutoZone will make the repairs for you (www.autozone.com). With all the factors to take into consideration the primary industry would be lower prices because this was the basis for starting out AutoZone similar to Walmart by making products available at low prices every day by shipping the products out to the stores from their own distribution center (Parnell, 2008).

AutoZone, the retail auto parts giant, has witnessed an exceptional recognition in value in recent years. Consequently, the majority of other resources have been confined by an economic decline. AutoZone overcame the recession while other companies struggled (Georgopoulos, 2011).

AutoZone known as the Auto Shack, selling auto parts founded in 1979 located in Forrest City, Arkansas. AutoZone’s strategy is tremendous for the growth of the company. The company can grow with a strategy that is effective based on the characteristics of Michael Porter. Auto Zone needs to stay afloat with the current competitor’s due to the new competitors selling the same products. The longevity of Auto Zone being in business will have a great effect with the current customers considering the impact they have with their goods and services. The parts the company sells aren’t interchangeable with their competitors. In the event the car dealership starts making cars with different part then AutoZone will sell the newer auto parts to accommodate

Autozone primarily falls under the NAICS Code 441310. Code 441310 is the Automotive Parts and Accessories Stores code. This industry is made up of retail stores that specialize in new, used, refurbished, and aftermarket parts as well as the repairing of parts or accessories on the automobile. “The automotive aftermarket industry supplies replacement parts (excluding tires), accessories, maintenance items, batteries, and automotive fluids for cars and light

AutoZone is not immune to economic downturn. In addition, when there is less money in the marketplace in general, all suffer, even AutoZone, since consumers need money to buy auto parts. If the company takes its eye off the ball with respect to its center retail operation, it risks ceding ground to its rivals. AutoZone has responded to changes in its macro environment by doing lots of things. One of the most notable changes is its commercial industry that caters to repair shops they buy items in bulk. This make prices lesser for the consumer, the car owner. Another important change that they have made was influenced by their macro environment it the changes to their store fronts and marketing. These advances are mostly technological changes