Autozone Macro Environment

There are millions of cars in the U.S. and abroad and people are keeping them for longer periods of time; therefore, the need for auto parts is high. AutoZone has more than 5,200 stores in the U.S., Puerto Rico, Mexico and Brazil and is the leading retailer and automotive replacement parts distributor in the U.S. (AutoZone, Inc., n.d.). While AutoZone is primarily geared toward providing parts and services to the do-it-yourself mechanic, they also offer parts distribution to professional repair shops (Parnell, 2014). AutoZone is committed to providing its customers with incomparable customer service and organizational efficiencies across their stores and throughout their supply chains (Moskowitz, 2016).
The economy has a huge effect on AutoZone’s business. Fuel costs, unemployment rates, and other economic conditions affect consumers and the automotive parts industry (10-K: AutoZone, 2016). From fiscal year 2015 to fiscal year 2016, the cost of a gallon of fuel has dropped by 55 cents, which has left consumers with additional disposable income (10-K: AutoZone, 2016). Increased available funds allow people to drive additional miles. Additional miles add to the wear and tear on automobiles. Since car sales have been dropping since 2008; the average age of cars on the road is increasing. Aging cars with increased number of miles driven are

and in turn Midas is exiting the distribution business and closing down all of its distribution centers (Midas, AutoZone form, 2016). In October of this year, ALLDATA; a subsidiary of AutoZone signed an exclusive contract with the National Independent Automotive Dealers Association (NIADA) to be the exclusive distributor of manufacturers’ service and repair information, shop management software and customer relations tools to members of the organization (ALLDATA Signs,