Evaluating Legal and Regulatory Issues

Running head: AUTOZONE1
AutoZone: Situation Analysis
Student Name
College/University Affiliation
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AutoZone: Situation Analysis
1. Introduction
AutoZone is a US, Tennessee-based automotive aftermarket retailer. Founded July 4, 1979 as Auto Shack by J.R. “Pitt” Hyde III in Forrest City, Arkansas, AutoZone/Auto Shack expanded into eight stores in Arkansas and Tennessee (“About AutoZone,” n.d.). Initially conceived by J.R. “Pitt” Hyde III as a specialty store and as part of family’s wholesale food business, AutoZone has expanded into an international company offering mutiple aftermarket services by expanding in size, operations and competitive advantage and staff. In 1987, Auto Shack became independent AutoZone lead by J.R. “Pitt” Hyde III. This step marked an important milestone in company’s history. By operating independently from Pitt’s family business, AutoZone assumed an independent corporate identity and, as such, continue to grow and develop a brand unique to AutoZone. In 1991, AutoZone was listed on New York Stock Exchange. Changing status from private to public company is second important milestone in company’s history. Turning public means, if anything, AutoZone, just as all publicly traded companies are, is accountable to stockholders and stakeholders as opposed to company’s founders and owners only. The change in status is, moreover, a strong indication of company’s solid financial and non-financial position. During, 1990s, AutoZone made more calculated and extremely successful moves only to cement company’s competitive edge in aftermarket industry. In 1996, AutoZone rolled out a commercial program providing credit and delivery to auto part professionals. Shortly after, Auto Zone acquired ALLDATA, country’s leading provider of electronic automotive diagnostic and repair software – a vertical expansion which has enabled AutoZone to diversify and further specialize in aftermarket offerings. In 1998, AutoZone was ready to expand
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internationally in Mexico and, years on in 2012, in Brazil. Today, AutoZone employs over 85,000 staff, or AutoZoners, in four continents supporting company’s growing operations (“About AutoZone”).
2. SWOT Analysis
The automotive aftermarket industry is extremely competitive. Susceptible to changes in upstream market, aftermarket industry is caught between sweeping changes occurring in vehicle manufacturing end and equally rapid changes in mobility market at end customer’s end. Technological innovations, coupled by rapidly changing customer preferences, are redefining automotive aftermarket industry in key significant ways. To put matters into more perspective, a closer examination is required of AutoZone’s operating environment. To do so, a SWOT analysis is presented as follows:
Strengths
* Brand Equity. AutoZone has, clearly, developed a reputation of service excellence over decades. Starting at early information and service economy period, i.e. 1970s, AutoZone has managed to eke out a niche market in aftermarket industry. Leading aftermarket by enhancing internal capabilities and expanding ...