AutoZone Group 30: Danielle Wohlert, tian ping, Zi ye, Vincent Lim, jeremy martin

Mission

"AutoZoners always put customers first!

We know our parts and products.

Our stores look great!

We’ve got the best merchandise at the right price.”

New Mission

At Auto Zone we are committed to exceeding the expectations of our customer and partners. We believe that customer satisfaction is determined by our ability to provide specific automotive products at our stores in the USA, Canada, Brazil and Mexico

Internal Assessment

Strength

  • 16.6% market share, the largest auto parts retailer in the US
  • AutoZone total company revenue was 10.6B which stemmed from the sales of auto parts

Weakness

  • High debt burden (over $400 million)
  • Legal issues are damaging the company image

External Assessment

Opportunities

  • Increase in per capita disposable income in 2017
  • The annualized rate of 0.9% growth of aging car will drive more people to auto part stores to find the right parts for their vehicles

Threats

  • With president Trump Administration’s tax increase on imports which would potentially costs up to 80 billion dollars’ worth of auto parts purchased from Mexico a year
  • Increase of 4.4% in the number of new car sales

Major Competitors

Advance Auto Parts

O'Reilly

Recommendation

  • Partnership with Midas, one of the largest automotive repair shop in the United States

STRATEGY BENEFITS

  • Increase our market share
  • Optimizing inventories
  • Increase revenue
  • Increase brand awareness
  • CSR

Projected Financial

6% growth, 2% greater than expected growth rate

Average EBIT With Strategy 2,307,631.67

Average EBIT Without Strategy 2,220,171.67

NPV 58,605.99

IRR 66.62%

Balance Scorecard

  • Customers: Value, satisfaction, faster shipping
  • CSR: Recycle used automotive parts
  • Financial: Increase revenue, optimize inventory

Conclusion

Credits:

Created with images by WALDEMAR MERGER | fotografie & design - "Yangon Street Part II" • Pexels - "car chrome classic" • Hugo-90 - "Premier, India" • Hugo-90 - "American vehicles" • JeepersMedia - "Midas Auto" • Hugo-90 - "DKW Bronco in USA - page 2/4" • Hugo-90 - "1956 DeSoto Diplomat" • time_anchor - "local_markets_nlv_auto-zone_storefront_1"

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