Autozone Case

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AutoZone is one of those companies where it is quite easy to provide a long list of strengths. AutoZone has a long record of internal growth and strong sales performance which catapulted to them into the number one position in their industry, especially for DIY automobile repairs (Parnell, 2014). Because of their lofty position they enjoy tremendous brand recognition with customers and substantial purchasing power from suppliers (Fleck, 2015). This buying power is enhanced by their heavy reliance on their private label brands of DuraLast and Valucraft, which account for half of their sales.

Weaknesses include a 4.7 billion dollar debt load with a negative equity valuation which will likely increase borrowing cost in the future (“AutoZone Inc”, 2015). AutoZone has spent less on their distribution infrastructure than their other major competitors and this will become more of an issue as they try to increase their sales to commercial businesses (Fleck, 2015). Speaking of commercial sales, AutoZone lags behind the competition in sales to automotive repair shops, and this area is cited as having the greatest growth potential. Also, Advance Auto and O’Reilly appear to be growing faster thru the use of acquisitions and internal growth which could impact the future position of AutoZone within the …show more content…
Online sales continue to be an increasingly important area with over half of survey respondents actually buying their parts online (Linder, 2015). The international and commercial markets seem to be the two areas that are likely to provide significant growth in the future (Fleck, 2015). And the usage of private branding may be aided by efforts to pass The Access to Repair Parts Act, which would make it legal to copy designs for repair parts (Wanstrath,
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