Autozone's Response To Changes In The Macro Environment

AutoZone has responded to changes in its' macro environment by placing stores in regions "that have large number of vehicles seven years old and older because of these cars' need for repairs and maintenance" (Wikinvest.com, 2012). Nationally, sales of new automobiles were at a 30-year low in 2009, but they have since rebounded slightly. Customers are still reluctant to buy new vehicles due to concern over high prices and general jitters about the economy. To combat this, many manufacturers have been offering discounts to lure consumers to purchase. As a result, AutoZone is facing a boon in the marketplace- "the cars and trucks in America's driveways have reached a record old age" (USAToday, 2012). In addition, there are more vehicles registered in the U.S. than previously.

Since the economy has yet to recover, consumers looking for an affordable option are more likely to choose the do-it-yourself route. To this end, AutoZone has responded by offering even better prices through private label parts. This is also in response to a consolidating auto parts company, which lowered the pricing power of AutoZone. AutoZone is not immune to threats associated with economic downturn, in particular rising oil prices, which encourages consumers to choose public transportation or at least reduce their driving and thus their dependence on vehicles. In addition, when there is less money in the marketplace in general, all suffer, even AutoZone, since consumers may need to leave their broken vehicle in the driveway until money is available for