Joseph Hyde Case Analysis

Midas shops provide total car care includes tires, brakes, batteries, oil changes, air conditioning, and an array of vehicle maintenance services by ASE-certified technicians (Midas International Corporation, 2014). Midas is a well-known company that customers use to take care of his or her automotive needs. The objective of this paper is to answer four question pertaining to the Midas case study in Chapter 2 of the textbook. These questions will discuss anticipated impacts on operating efficiencies, recommend solutions to minimize the negative impacts, operating practices to accommodate tune-ups, reasons why input should be

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, the top retailer in the United States has always based its strategy on DIY customers with cars over seven years old (Parnell, 2014). As technology has evolved, cars have become more difficult to work on, hence, a new target market of do-it-for-me is continuing to grow. Sales of 2.3 billion were reported for the second quarter of 2017, and the company cited higher supply chain and shrink costs (Landis, 2017).

Midas is an automotive business is a business that prides itself on customer relationship and reliability. Unlike a full service auto repair company, Midas services are a narrow range of service, such as, muffler repair, brakes and shock replacement. Just recently Midis decided to add tune-ups to their product line. In this essay, we will discuss the anticipation impacts (both positive and negative) upon operating efficiencies and recommend solution to minimize the negative impact. We will discuss whether or not operating practices should change to accommodate the tune-ups. We will also examine the reason, why input should be gathered from the shop owners and why type of input gathered. Last we will describe the process and steps needed to launch this new program.

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).”

Heavy reliance on the service part of their industry means that if they exist in markets that specialize in service to customer’s vehicles, they must be able to do more than just fix cars. Therefore, Pep Boys must adapt to different industries. When Pep Boys loses sales in service, however they are only making modest profits in the do it yourself market, the company suffers as a whole and result in closures. When you have a dual market strategy, you must have an equal balance in both just in case one area suffers a setback in sales, the other half can pick up the

AutoZone is a retailer and distributor of automotive replacement parts and accessories. With this retail market being saturated, AutoZone has faced tough competition from O’Reilly Automotive, Advance Auto, and Walmart. With the expansion of competition, over everything from price to parts availability, AutoZone decided to make an investment back into the business. Subsequently, AutoZone has strategically change the concept of its supply chain strategy to remain competitive. The changes includes increased frequency of delivery to stores and significantly expanded parts assortments in select mega hubs (Meek, 2017). In addition, more frequent deliveries facilitate lower part depth and higher breadth (Plexor, 2016). AutoZone has made strategic

AutoZone’s greatest disadvantage as of today is their growing burden of debt. Annual reports show that AutoZone has a huge debt of around from $2,726,900 in FY2013 to $4,187,000 in FY2014. This debt increase could particularly affect the company’s ability to expand outside U.S territories. To combat company debt, opportunities such as the increase of aging cars in need of car parts is likely to help AutoZone through financial uncertainties. This along with the expanding auto part market will control AutoZone’s debt burden and allow the company’s cost structure to remain

In 2014, the company continues to grow globally and quickly gains a net income soared of 9.4 percent to $139 million as net sales rose 7.3 percent to $2 billion. In the United States sales increased to 4.3% as the company saw double-digit earnings-per-share (EPS). Opening domestic distribution centers in Mexico helped AutoZone meet client’s needs across all channels. Investing capital in the company helps them stay committed to their disciplined approach of growing operating earnings and utilizing their capital effectively. AutoZone offers a lot for their employees, definitely values them. They offer a competitive benefits kit such as customer- focused culture and team-orientated environment. AutoZone in Mexico also offers a number of programs

Automotive Builders, Inc. (ABI) is a company that consistently changed its production lines and strategic goals relative to the needs of the times, starting out producing diesel engine parts for tractors in the 1940’s, switching over to the production of parts for military vehicles during World War II, and then, after the war, settling into its current placement in both the automobile and tractor industry. Due to the downturn in the economy and stiff and superior competition in both quality and price rising up from the Japanese who had recently entered into the industry, ABI is trying to find productive and innovative ways to improve sales and guarantee placement as the number one company in its

Auto Service is a tough business, The shop owner is basically dependent upon the quality of

Interrelated variables account for the decisions of per capita purchases for adults in considering automobile acquisitions. Most mainstream automotive manufacturers offer different models to fit each market segment based primarily on the customer’s age, purchasing power, and lifestyle. Depending on the market segment that an individual can enter into based upon their budget restrictions, a myriad of options are available based on one 's lifestyle and automotive requirements. Today, automobile manufacturers offer compacts, intermediates, large, and premium size vehicles with correlating body styles such as coupe, sedan, sport utility, pickup trucks, and even crossovers. Utilizing a popular automobile manufacturer for an example of this observation, Toyota is currently considered to be the world’s largest automobile company (Holt, 2015). As of late, Toyota has also been the most successful automotive company. Recently plagued with accelerator, braking, and steering issues with their popular hybrid models, as well as supply chain disruptions in Japan’s recent tsunami disasters, Toyota has succumbed in its success to Volkswagen with a recent posting of 5.04 million vehicles sold worldwide in the second quarter of 2015 to Toyota’s posting of 5.02 million vehicles sold worldwide (Tuttle, 2015). The loss of market share by Toyota was due, in part, to lack of contingency plans for supply chain disruptions, which is liken to the biblical principle: “where there is no vision,

The automotive industry is a highly competitive market where brand loyalty is only as strong as the latest gizmo and horsepower upgrade. The automotive assembly process, perfected by Henry Ford, was based on the simple principle that “customers can order a Model T in any color they wanted as long as it was black.” After the 1920’s the market witnessed new entrants with unheard of automobile features that ended Ford’s golden age. New automakers such as Buick, Chrysler, and Oldsmobile offered customers varying colors and styles that propelled sales. The automotive industry has grown in the United States from 4192 automobiles on the road in 1900 to 204 million in 2003. In an effort to regain brand loyalty Ford has embarked on an ambitious

The on-going slowdown in the OEM business in automotive and UPS sectors is expected to work as a boon as it will help the company in maintaining its market share in the aftermarket sectors. Since the company is spending major portion of its capex in expansion of existing facilities as a result there is a threat of losing out to aggressive competitors.

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.