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AutoZone Inc. SWOT and PESTLE Analysis

ID : 52988153| Feb 2023| 18 pages

COMPANY PROFILE -AutoZone Inc.

Business Sector :Automobile

Operating Geography :United States, North America

About AutoZone Inc. :

AutoZone, Inc., headquartered in Memphis, Tennessee, is an American retailer of aftermarket automotive parts and accessories. The company was formerly known as Auto Shack and was a part of Memphis-based wholesale grocer Malone & Hyde. In Forrest City, Arkansas, on July 4, 1979, the first store opened. AutoZone took over from Auto Shack in 1987. AutoZone's private label lead-acid automobile battery brands include Valucraft, Duralast, and Duralast Gold. AGM batteries are part of the Duralast Platinum series. Duralast tools, which come with a lifetime warranty, are also offered at AutoZone. AutoZone's 6,000+ retail stores in the United States, Mexico, and Brazil stock a wide range of aftermarket and OEM components. AutoZone stores are all owned by the company. On June 8, 2021, AutoZone held a virtual AutoZone Vendor Partner Summit to honour 17 of its finest vendors. The awards recognise businesses that have outperformed the competition and displayed a strong commitment to customer satisfaction in the previous year.


AutoZone's Unique Selling Point or USP lies in it being the nation's leading retailer and distributor of automotive replacement parts and accessories. AutoZone's mission statement reads, "To put the customer first and provide car repair and maintenance advice that is trustworthy".

AutoZone Inc. Revenue :


$ 12631.97 million – FY ending 31st August 2020
$ 11863.75 million – FY ending 31st August 2019

Competitive Analysis of AutoZone Inc.

SWOT
PESTLE
The SWOT analysis for AutoZone Inc. is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Wide geographic presence alongside a substantive digital footprint
2. Highly skilled and trained workforce who provide valuable consultation alongside a host of free services offered by the firm.
3. Sells ALLDATA brand automotive diagnostic and repair software.
4. A diversified product portfolio and high customer satisfaction.
1. It is only present in America, with heavy dependence on the United States.
OpportunitiesThreats
. Due to the increasing complexities of cars the potential growth for DIFM (do it for me) market has widened.
2. The covid-19 pandemic has led people to use less of public transport increasing vehicle miles travelled of private cars.
3. The increase in the average age of cars will increase the rate at which maintenance and repairs are required.
1. The business is seasonal in nature. Sales is decreased due to rainy or mild weather conditions.
2. Technological advances such as electric vehicles which has a lower maintenance cost and has fewer, long lasting parts.
3. Rising energy prices causes customers to defer purchases of certain products as a significant proportion of their income is used to pay for gasoline and other energy costs.
4. The aftermarket auto parts industry is a highly competitive market.
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Detailed SWOT Analysis of AutoZone Inc.

Strength

1. Wide geographic presence alongside a substantive digital footprint: AutoZone is the leading retailer and distributer in the United States. The company has 5951 stores in the United States, 628 stores in Mexico and 46 stores in Brazil. AutoZone has developed a competitive e-commerce platform for customers, autozone.com . Through this portal, it sells repair parts and accessories, automotive hard part and non-automotive parts. The website is available and can be accessed free of cost and hence customers who prefer to order their auto parts online can do so. Free delivery is also available on orders above $35. The company also has a commercial program which offers credit and delivery to professional installers. Commercial programs are present in over 85% US stores and in every store in Brazil and Mexico. It has a website for its commercial customers www.autozonepro.com. Though few other companies have e-commerce platforms, but the specialised customer service along with online presence gives Autozone a major competitive advantage.

2. Highly skilled and trained workforce who provide valuable consultation alongside a host of free services offered by the firm: On the job and formal training is provided to the employees of AutoZone. AutoZoners are motivated to complete AutoZone’s in-house product knowledge program as well as Parts Expert certification. AutoZoners know their products and parts. They give trustworthy advice to their customers. A lot of AutoZone’s services are free like testing and charging of batteries, collection of used oil for recycling purposes, diagnostic testing and their Loan-A-Tool Program (where the customers can borrow specialty tools without incurring any additional cost). On their website repair guides and ‘how to videos’ are also present which gives valuable information regarding how some automotive systems function, how to perform jobs and select parts. The company even provides free delivery on orders above $35. Customers can even place the order beforehand and opt for free store pick up when the parts and accessories arrive.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • O’Reilly Automotive, Inc
  • Dollar General Corporation
  • Advance Auto Parts, Inc.
  • Pep Boys-Manny, Moe and Jack
  • LKQ Corporation
  • Transamerican Auto Parts
  • Genuine Parts Company (NAPA)
  • Dorman Products
  • Auto Plus

Major Brands :

  • Duralast Gold Chassis
  • AC Pro
  • AC Delco
  • Avalanche
  • Castrol
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References used in AutoZone Inc. SWOT & PESTLE Analysis Report

1. AutoZone Announces Change to Executive Committee - https://investors.autozone.com/news-releases/news-release-details/autozone-announces-change-executive-committee-1

2. A Long Road Of Growth For AutoZone - https://www.forbes.com/sites/greatspeculations/2020/11/17/a-long-road-of-growth-for-autozone/?sh=de2c59863bb6

3. CORPORATE SOCIAL RESPONSIBILITY REPORT 2019 - https://www.autozone.com/company/images/AZ-CSR-19-FINAL-1.pdf

4. AutoZone, Inc. | About Us | Our Company, Our Culture | Our Pledge and values - https://www.autozone.com/company/our-company/our-pledge-and-values.html

5. AutoZone, Inc. | About Us | Our Company, Our Culture | Our Stores - https://www.autozone.com/company/our-company/our-stores.html

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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AutoZone Inc. SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). AutoZone Inc. SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/autozone/ [Accessed 26 Apr, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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AutoZone, Inc. SWOT and PESTLE analysis has been conducted by Shreya Gupta and reviewed by senior analysts from Barakaat Consulting.

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