With the technology leads the company in the automotive aftermarket industry in today’s world. Having a well-organized business model for logistics and distribution, this has increase the company continuously growth for more than three decades. In1989, AutoZone began using a (SMS) Store Management System put into place to keep the stores stocked with parts that meets…
In order to answer the question as where AutoEdge fits in its industry in comparison to its competitors it will be helpful to look at market structure and the various areas or types of market structure. So what is a market structure? A market structure may be defined as “the characteristics of the market” (Whatiseconomics, 2014). The word characteristics is the key to fully grasping this seemingly simple definition of what market structure is. Market structure or the characteristics of the market can be sorted into two categories where one is organizational characteristics and the other is competitive characteristics. Consideration should be given to other features that may also be a good description of a product or service market. Features such the number of businesses in a specific market where this would provide a broader view of both national and international competitors, concentration ratios show which entity is holding the larger percentage of the market, nature costs illustrates the effects of contestability thats inclusive of economic scale and suck costs.…
There are numerous external factors that impact the auto industry and whether or not product marketing will be successful. Luckily, businesses can take action to make sure they are as pro-active as possible to ensure success. Unfortunately, despite planning, research, and the pro-active measures some things will also be out of one’s control and require adaptability if nothing else. With that being said, perhaps the biggest hindrances to the automobile industry are the political factors. Trade restrictions, tax policies, employment regulations, and consumer protection legislation, fair and safe markets, political influences on business infrastructure can all vary substantially from one country to the next (Finch, 2012). This is…
ii. The auto industry sells discretionary goods, which consumers can afford to purchase more of in a booming economy. Therefore these companies stocks are cyclical since their price can be affected by ups and downs in the economy.…
automotive industry is closely tied to the auto components industry through alliances and other financial arrangements. This is…
Auto Shack which changed it's name to Auto Zone in 1987 has captured the largest market share in the auto parts store industry, and one of Auto Zones main competitive advantage is their customer service. They are able to offer prompt and courteous service as well as trust worthy advice. "Today Auto Zone operates more than 3,800 retail auto parts stores in the United States and about 100 in Mexico." (Parnell, 2008). Auto Zone offers a variety of choices when it comes to their products, they have good, better, and best. With these types of choices it allows their customers the opportunity to purchase quality products at affordable prices as well as they are able to get excellent quality products at premium prices. Auto Zone is known for their…
AutoZone, founded by J.R. "Pitt" Hyde III in Forrest City, Arkansas on July 4, 1979 was originally called Auto Shack. The first Auto Shack store manager was a man named Doc Crain. Sales totaled $300 on the first day of business. In 1986, Auto Shack became a freestanding company with Pitt serving as its first Chairman and CEO. AutoZone’s mission statement revolves around their customer service pledge called “What it Takes to Do the Job Right” (WTTDTJR), which states; “AutoZoners always put customers first! We know our parts and products. Our stores look great! We 've got the best merchandise at the right…
In contrast, one industry, which isn’t secure, is the car industry, which took a bad turn during the recession. In December 2008 many car manufacturers had to cut shifts meaning shorter hours for workers to save money on salaries. Aston Martin has to cut 600 jobs due to the extreme market conditions proving they have taken on the strategy to cut costs as opposed to optimise…
Many companies felt the effects of the global recession. There was a new increased focus on customer retention as many customers struggled to pay every day bills. Like with any industry, those companies that prepared early, improving operation efficiencies and cost cutting, managed to weather the harsh economic storm. Recessions often force companies to think more critically about spending both time and money with respects to efficiency and profitability. They bring about new thinking and change. This looming global recession is being fed by the collapse of housing bubbles in the United…
AutoEdge in which is taking a major and/or big risk changing moving the company to south Korea in which would affect the cost of leadership. In which would be a down fall for corresponding to the quality in which could suffer a major lost and would potential led to a recall on several and millions of automobiles. (M.U.S.E, 2014) Another weakness would be not being able to function in an oligopoly in which the company would not be able to fluctuate with pricing in which then would be limited for the company. AutoEdge has a relatively inelasticity of the products that they have and the company prices will be dictated as well the company will be monitored by the competitors pricing for the company to be able to compete and/or competitive. If AutoEdge prices was to increase and not be able to match the competitors pricing the organization would potential lost their market share. And finally the weakness of a company would be uncertainty that a company is able to rebuild the company’s brand as well as grow a market share. In which would give the competition an advantage to be able to improve their company market share in which would be due to poor performance of a company as well as recall and any fines that the company may have occurred over the years in which they will continue to have to be able to grow the market share. It can only be estimated how long the process could possible take as well as the cost of what it would be for the company to consider a rebranding plan for the company.(Hill,…
AutoZone’s shareholders had enjoyed strong price appreciation since 1997, with an average annual return of 11.5%. Over the previous five years, AutoZone’s stock price has increased dramatically. On February 1. 2012 the stock price was $348 compared to the $125 on February 1. 2007. The strong price appreciation resulted from several occurrences; some of them are U.S. economy recession and share repurchase program. Auto-part business was somewhat counter-cyclical. Company’s growth and stock price were directly related to the economy and number of miles a vehicle had been driven. As the age of car increased, more repairs were required. Because of these reasons, AutoZone’s stock price was significantly improving from 2008.…
AutoZone’s main organizational strength has been their robust financial performance. According to Dow Theory Forecasts (2012), “Through downturns and upswings, AutoZone ($330; AZO) has delivered higher revenue for more than 20 straight years.” The company continues to increase sales and revenue. AutoZone was able to accomplish this in 2011 even with gas prices up 25% and miles driven down 1%, which would suggest the need for AutoZone’s maintenance and failure products to be in less demand. This was accomplished by offering superior customer service, products, and quality information over its competitors.…
The purpose of this report is to analyze the German automotive industry and conclude whether or not it could be a profitable industry to take on a client in. This conclusion will be drawn up from key facts that will also be provided in the report in order to accurately ensure a quality recommendation.…
[pic] University of Malaya Faculty of Business and Accountancy Graduate School of Business Master of Business Administration ___________________________________________ CMGB 6101 – MARKETING MANAGEMENT [pic] PRODUCT : PROTON EXORA 2 For: Michael M.Dent Msc, MPhil, MCIM Prepared by: Halisah Ashari CGA 080108 Linda Sim Siew Kian CGA 080016 Teh Chye Beng CGA 080035 CONTENTS EXECUTIVE SUMMARY 4 1. INTRODUCTION 1. AUTO INDUSTRY IN GENERAL 2009 4 2.…
Mr Praveen Kadle, senior vice president, corporate affairs adds, that the company has been massively hit by the recession in the industry as there was a general economic slowdown where increase in fuel prices did not lead to a commensurate increase in freight rates. Besides, equalisation of sales tax almost doubled the cost of acquisition of a truck.…