AutoZone Strategy Proposal

B.L.U.F.

  • Proposed Strategy: AutoZone will differentiate themselves by supplying customers with a larger variety of DIFM (do-it-for-me) services.
  • This Proposal will: Provide customers with the convenience of having products installed without going to a mechanic or doing it themselves.
  • NPV: 1,391,727
  • IRR: 6.72%

Proposed Mission Statement

  • “AutoZone is committed to providing our customers with the high-quality products they expect with a price tag that won’t hurt their wallet. We understand that not all auto parts retailers are created equal. As a Fortune 500 company, we will continually be on the leading edge of the industry with quality products, changes, and designs. At the core of our organization is our dedication to superior customer service and satisfaction. We aim to supply our customers with expert advice and solutions to get the job done. AutoZone is constantly expanding and will consistently be at the forefront of auto parts retailers everywhere.”

Implementing Strategy

Short Term

What/When

  • Add DIFM services in 110 stores in Chicago, Miami, Memphis, Dallas, and Detroit by the end of 2017.
  • Services include: windshield wiper blade replacements, battery changes, fill washer fluid, fill antifreeze/coolant, tire pressure, headlight replacement, tail light replacement, turn signal replacement, fog light replacement, windshield replacement, windshield crack repair.

Why

  • Convenience for customers so that they do not have to go to a mechanic for easy services or do it themselves.
  • Provide a service that will make AutoZone stand out amongst their competitors.

How

  • Training all employees for simple DIFM services.
  • Invest approximately 9.03 Million into starting and advertising this strategy in 110 stores.

Long Term

  • Adding 890 more stores by the end of 2018.
  • 1,000 new stores each year until 2022.
  • Total projected costs are $450,000,000 over 5 years.

Ratios

Long Term Objective

  • Have sales increase by 5% and stay at a constant 5% rate from the projected sales forecast.
  • Incorporate this change at all AutoZone locations by 2022.

Questions

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