The Impact Of Autozone On The Automotive Aftermarket Industry For Over 30 Years

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

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 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.

AutoZone is aligning the firm to be an immediate go-to with larger corporations in efforts for a trickle down effect with its constituents. According to the case study “AutoZone operates about 4,400 retail auto parts stores in the United States and Puerto Rico, and about 250 in Mexico” (2014, p.366). Furthermore, the case study also reveals “AutoZone emphasizes internal growth by opening up an additional 150 to 200 store per year” (2014,

It is mentioned earlier that there are no locations in Saskatchewan, Manitoba and much of their target market in the United States. Fix Auto needs to focus on their primary objective of becoming the North American auto body repair chain. Fix Auto is experiencing overexpansion. “Overexpansion often occurs when business owners confuse success with how fast they can expand their business” (Schaefer, 2006, Overexpansion.). In a 2005 study done by the Law School at the University of Chicago, It was found that of the chapter 11 small business Bankruptcies issued in the United States, overexpansion contributed to a “non-trivial” (Baird & Morrison, 2005, Pg. 7, Para. 1) number of cases. The best method for expansion is steadily and to move to new countries one at a time. (Schaefer, 2006, Overexpansion). Fix Auto should capitalize on their existing regions such as the United States, Canada, and the United Kingdom before moving into new markets such as Australia, South Africa and Turkey.

Auto Zone has responded positively to the changes in its microenvironment. The company has managed to keep up with the many changes in the economy. Changes in the economy can cause an increase or decrease in gross domestic products. Gross domestic products can affect some industry more than others, especially those in global markets. (Parnell, 2013). “Over the past 15 years the auto industry has shifted from a regional industry to a global industry, as a result of this shift the original equipment supplier base has been pulled in the same direction” (Santucci,1997, p.1) Auto Zone has keep up with changes and shifted into the global industry as well. The company has stores in all 50 states and now has expanded globally into Mexico and Brazil."Expanding

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

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.

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

The Global Purchasing and Supply Chain division was responsible for streamlining the supply chain and the year 2013 was a good one for the U.S. automotive market as sales rose 7.6 percent to 15.6 million vehicles. This is a substantial comeback from the levels of 2009-2010 when severe recession forced the bankruptcy of General Motors and other automobile companies and caused many other automakers to lose revenue and profits hence reducing labor and operation costs by massive worker layoffs and downsizing by closing manufacturing plants.

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.