Aftermarket Automotive Industry Analysis.

Essay by aviraUniversity, Master'sA+, October 2003

download word file, 7 pages 3.4

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 (

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...