Auto Zone and External Environment

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1. How would you define Auto Zone's industry? Would you include new car dealerships and/or discount stores in the industry? Why or why not?

AutoZone is in the automotive aftermarket industry, which is a secondary market to the automobile manufacturing industry. The industry helps consumers keep vehicles on the road by supplying parts and service for automobiles. The automotive aftermarket industry "encompasses all products and services purchased for light, medium and heavy duty vehicles after the original sale, including replacement parts, accessories, lubricants, appearance products, tires, collision repairs as well as the tools and equipment necessary to make the repair" (Aftermarket.org, 2012). Auto Zone is the leading distributor of automotive replacement parts and accessories in the United States. Other components of the industry include manufacturers and distributors of car parts and accessories, part stores, service and repair shops, and importers.

New car dealerships would not be included in this industry from the standpoint of their function as sellers of automobiles, however, since frequently new car dealerships also operate repair and service facilities, than a portion of the business might be included in the industry. Discount stores that sell parts or service vehicles would fall into the automotive aftermarket industry. One strategic issue that comes up is the use of original equipment manufacturer (OEM) parts compared to aftermarket parts. In reality, in many cases these parts may both have been sourced from the same manufacturer. In fact, most auto manufacturers use outside independent companies to help them design the parts used in vehicles, and then stamp the product with their brand. These parts become available to the consumer after a certain time ...