Autozon Company Case Analysis

When discussing economic downturns the AutoZone organization is not immune. When there is a lower amount of funds present in the market place, then it is inevitable that all will suffer. Money is required to make any purchase, including parts for automobiles. It is important for all organizations including AutoZone to remain focused with its center retail operation, in order to keep up with other competitors within the industry. There are many different factors that can make an impact on how customers have to designate their spending money. These changes fluctuate year-to-year depending on the economy. It may be hard for individuals when they are dealing with issues such as: poor housing market, food inflation, energy cost raising, etc. All of these issues can limit their funds that can be spent on automobile parts and products. By making an integration with different parts

This has made AutoZone take advantage on the current retail presence that they hold as well as the poor recognition of several aftermarket auto brands that sponsor labels such as Duralast and Valucraft. Valucraft and Duralast bring in a great deal of sales and profit for AutoZone. In the Do-It-Yourself market that AutoZone operates under, they are getting close to 80% percent of their revenue. This resulted in $268 billion dollars in 2017 (Laudani, 2017.) AutoZone has been seen to be providing prices that are more competitive through these private label parts. All of this is due to bringing together the auto parts manufacturer industry. This resulted in the pricing power being lowered by AutoZone. AutoZone is continuing to see growth in their Do-It-Yourself sector of the industry. This is beneficial for their customer base that is seeking options that allow for the opportunity to complete themselves and are more economically