Aftermarket Automotive Industry Analysis

Cost PositionThe cost to manufacture and sell is moderately higher than its competitors. The cost is much lower than both GM Parts and NAPAThe cost to manufacture and sell is moderately higher than its competitors. The cost position is similar to AutoZone
ServiceHigh. NAPA thrives on serviceDue to its unspecialized nature the service is not high.Medium to High. Bigger companies like GM can lose customer "intimacy"High due to its relatively low size, the level of customer interaction and intimacy is high.
Price PolicyPrice is relatively high due to its manufacturing costs. Price is relatively competitive.Price is high.Price is higher than the NAPA, AutoZone and GM parts due to its smaller size.
Company LeverageLow to Medium. NAPA parts are simply a replacement option.Low. AutoZone simply supplies parts from third party manufacturersHigh. GM Parts are for GM cars.Low. These minor competitors simply supply the parts from third party manufacturers.
In summary, the two strongest strategic variables are 'Price' and 'Quality'. NAPA online compared to its closest competitors offers consumers products with competitive pricing that delivers high quality. Quality is the single most important variable in this industry. NAPA differentiates itself from its competitors by offering their own brand aftermarket parts for automotives. AutoZone and some of the others competitors simply act as a 'distributor' in the supply chain.
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