AutoZone utilizes market penetration and market segmentation and to gain their main competitive advantages. AutoZone focused on serving two key segments, the DIY customer segment and the commercial customer segment. Many of AutoZone’s competitors cater to a small portion of the commercial customer segment. Through market penetration and market segmentation and market penetration, it appears that AutoZone has been able to gain an advantage over their competition. This is partly due to AutoZone’s policy of establishing a large market penetration within any geographical area by quickly developing main stores in a given area.
As marketing competition became fiercer, AutoZone saw the need to advance their promotion strategies. In 2013, AutoZone contracted KSS Retail to manage data collection and oversee their promotion strategies (KSS, 2013). Since then, …show more content…
aftermarket auto parts market is quickly approaching capacity limitations. Basically, the market is flooded. Any really significant growth in this market will need to come from the international sector.
To sustain their pattern of continued rapid growth, AutoZone will need to first define their objectives for their international expansions. International market opportunities may not mirror corporate objectives. There may be different competitive advantages to be gained in each different international market (Smith, 1986). With clear corporate objectives, AutoZone can more easily adapt to these differences.
Before progressing into new and unfamiliar markets, AutoZone should review the annual reports of their competitors within the same geographical market. Additionally, the number of auto mechanic businesses should be researched, as well as analyzing the comparison between repairs shop capacities and local populations. Additionally, new and used car sales may positively or negatively affect this market. Therefore, these sales statistics should also be carefully