Joseph Hee Acquisition Of Auto Shack

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

I would like to preface this report by mentioning that this interview went nothing like I expected. At 7:00pm on Tuesday, March 21st I walked into the office of Brad Hults, the owner and founder of Jefferson Midstate Auto Auction (JMAA). Every Tuesday used car dealers from all over the Midwest come to JMAA looking to buy and sell used cars. My dad, an auto dealer himself, currently works there on sale days (Tuesdays) and it just so happens that my father has connections with Brad. I am lucky enough to have an inside scoop on the business- I actually worked there on sale days last summer. This gives me an understanding of the culture and what JMAA really values as a company. Unfortunately, up until this interview, I had never actually had a

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.).

The company has been implementing the dual market strategy since the early 1970’s. O’Reilly currently has 4,571 stores in 44 states (Financials , 2016). O’Reilly, AutoZone, Advanced Auto Parts and Genuine Parts Company (NAPA) are the dominant competitors (O 'Reilly Automotive, Inc. , 2015). The company did not have any distinct competitive advantages during the1970’s-1990’s (O 'Reilly Automotive, Inc. , 2015). The company’s operational execution was far superior relative to their primary mom and pop shop competitors. O’Reilly has a competitive advantage in the area of operational expertise. The company has grown its store base most aggressively out of the competitors (O 'Reilly Automotive, Inc. , 2015). O’Reilly’s acquisition of CSK in 2008 doubled the corporations store count. The company has experienced margin expansion by improving the operation of CSK stores. In January 2014, Advanced Auto Parts acquired General Parts International, Inc., the parent company of CARQUEST, which gave Advance 1,248 stores company operated CARQUEST stores across the US and Canada, 1,400 independently owned CARQUEST stores, and

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

Autonation, the major competitor of CarMax, copied CarMax's model, stores, consumers' offers, and entered the same market and were the first to enter other markets. This forced CarMax to grow more quickly than they originally intended. New car dealer incentives and the low financing rates some times increased demand for new cars among buyers who would otherwise be looking to buy a low mileage, late model used cars. The competitors in this industry are like the ants army. They are large in number but small in size.

AutoZone employed a growth strategy that grew the company to 200 stores in 5 years. When the firm went public in 1991, AutoZone had grown to nearly 600 stores. The company began to acquire other businesses in 1998, including Chief Auto Parts and Adap’s Auto Palace Stores. At the turn of the century, AutoZone attempted a change in strategy from acquisition to internal growth averaging an additional 150 to 200 stores per year. AutoZone targets the do-it-yourself market and professional repair shops. Advance Auto Parts is AutoZone’s greatest competition holding at number two in the industry. Other competitors include Pep Boys and O’Reilly,

Job analysis refers to the process of data collection to describe verifiable work characteristics and behaviors of the working environment. Information regarding all jobs is used as a basis for making decisions about setting salaries and wage rates, performance appraisals, developing and training of employees, classifying jobs and job positions, as well as articulating employee guiding standards (National Governors' Association & United States, 2007).

Autozone started as a small retail auto part store in the late 1970’s. Auto Shack was founded by J.R. “Pitt” Hyde III. Auto Shack was the first name that was given to the company. AutoZone official name was given in the 1980’s. Autozone made their first impression in New York stock exchange in 1991 (Autozone, 2014-15). Autozone become one of the first auto part store that was able to put in customer warranties in a computer database. By allowing the company to increase in technology devices that allows the company to help each autozone communicate between stores. By using this business structure helped Autozone increase their sales significantly, banking up to 1.5 billions dollars in sales. In 1995 Autozone created their own Duralast and

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.

The John Deere Company was started by one man in 1837. John Deere was a blacksmith and an inventor who strove to ease the job of the local farmers. That effort, with his original core values still intact, grew into worldwide company. Along with those core values Deere and Company has developed and maintained a reputation for their business ethics. They have a solid organization structure built up by exceptional human resources division. With all of this, John Deere’s name and brand are known around the world. Headquartered in Moline, IL, Deere and Company, as it is officially known, is one of the oldest industrial companies in the United States. (Cripple, 2010)

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).”

Another alternative would be to use the cash to increase number of stores or expansion of its business in Brazil. There is always a first mover advantage that AutoZone could capture in the Brazil market. AutoZone had already captured the market in Mexico, Canada and Puerto Rico.Yet again, autoparts industry seems to have slowed down its number of store in the last year but the distance travelled by light trucks has remained the same while the average age of these vehicles has increased (Appendix - Figure 4 & 5). This means that these vehicles require maintenance in the long run. Also, AutoZone could be the first to capture new markets.

The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the

The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new business units to minimize it by looking into investing on early-stage opportunities.