Aftermarket Automotive Industry Analysis.
Company Background
NAPA, a leader in the automotive industry, was founded in 1925 to provide a system for distributing automotive parts worldwide. The company is traded under the symbol "GPC" in the New York Stock Exchange. Since NAPA and GPC are considered one company, for this analysis we will refer to this GPC and NAPA merger as simply NAPA.
NAPA's strength is unrivaled, with 6,000 NAPA AUTO PARTS stores, 69 Distribution Centers, 9,600 affiliated NAPA AutoCare repair facilities, 200,000 parts in inventory every day, and more ASE-Certified Parts Professionals than anyone in the industry. NAPA is also a leading supplier of specialty parts and equipment for collisions which include heavy-duty trucks, and industrial markets. NAPA operates in Canada, Mexico and with other locations throughout the Caribbean and Latin America.
Below is a graphical image of NAPA's (GPC) stock performance over the last year.
Porter's 5 Forces Analysis of NAPA Online (http://www.napaonline.com)
The analysis will identify five key areas; threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing competitors. Identifying these areas will help in strategizing the company's efforts to achieve the greatest returns in this highly competitive industry. Since NAPA and the automotive industry are fairly large, this analysis will focus in on the E-Commerce with the focal point on the Canadian market.
Below is a graphical representation of the traditional methods of buying and selling automotive parts. NAPA is attempting to change this model by implementing an e-commerce strategy.
Below is the analysis of Porter's 5 forces. The format will be: a list of both positive and negative impact of introducing e-commerce to this industry, and a summary paragraph of each force.
Threat of New Entrants
*The ability for the adaptors of the traditional methods to...
More Automotive Companies
essays:
DaimlerChrysler AG - The Making of a New Transnational Corporation
... future. Company is one of the leaders who set the pace in the automotive industry: ABS, the airbag, ESP and the Distronic system are the part of ...
Harley Davidson: industry outlook
... value. Industry Outlook Harley-Davidson's primary market is heavy-weight ... 2004 models. Retail sales continue to surpass production causing dealer stocks to decline. HDI is continuing to expand its new product families namely, the Harley-Davidson V-Rod motorcycle and ...
Case study of Automobile Industry. Research on General Motors
... automobile company, with Shanghai Automotive Industry Corporation (SAIC), built Shanghai GM (SGM)'s plant, which consists of vehicle, engine, and transmission assembly operations, as well as a marketing and administration headquarters. Total investment is about US$1.5 billion ...
Internationalisation of Toyota.
... youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. Threats * Regulation change The automotive industry is ...
Southeast Racing Parts (SRP)
... the market for racing parts and accessories is rapidly expanding. Performance Racing Industry completed an estimate for total number of racers. The resulting number was 385,000 people who competed in an organized auto race ...
DaimlerChrysler Financial Services Australia - A market analyis by Linda Schmid (extraction of an internship report)
... the company possesses transaction specific assets which are for example the over the years gained knowledge about financial services and the automotive industry, and ... of Industrial/Organisational Psychology, John Wiley, New York. Appendix Appendix B: Australia's Political Forces From ...
Auto Industry
... as forces that drive our economy, automobile sales, understanding key roles in the automotive industry, and the better understanding that we have gained into the economic structure. Auto Industry HistoryThe automobile industry (AI) plans, designs, manufactures, markets, and ...
The Automobile Industry
... The automotive industry has several weaknesses including rising health care and retirement costs of older workers. The larger automakers in the United States are struggling with debt bonds that have been downgraded to junk status. Stock prices have fallen and companies ...