O'Reilly Auto Parts Analysis

Delivered November 7th, 2019. Contributors: Joseph M. and

Early FindingsO'Reilly Auto Parts Analysis

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O'Reilly Auto Parts Analysis

From research findings, O'Reilly Auto Parts had an annual revenue of $9.54 billion in 2018. Additionally, the company offers a variety of products and services in a total of 31 major categories that are further broken down into sub-categories. A detailed overview of research findings follows below.  
RevenueIn the year that ended in December 2018, O'Reilly Auto Parts recorded an annual revenue of $9.54 billion. This revenue represented a 6% increase from the revenue recorded in 2017
In the year that ended in December 2017, O'Reilly Auto Parts recorded an annual revenue of $8.98 billion while in the year that ended in December 2016, the company recorded an annual revenue of $8.59 billion.  
Products and ServicesO'Reilly Auto Parts stores offer a wide selection of products and services for domestic and imported automobiles, vans, and trucks to two main categories of customers — DIY and professional service provider customers. 
The company's stores carry an extensive product line that includes:
New and remanufactured automotive hard parts such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, and water pumps. 
Maintenance items that include antifreeze, appearance products, engine additives, filters, fluids, lighting, oil and wiper blades. 
Accessories such as floor mats, seat covers, and truck accessories. 
In addition, O'Reilly Auto Parts stores also offer services and programs to customers. These services and programs include battery diagnostic testing, battery, wiper and bulb replacement, check engine light code extraction, custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, loaner tool program, machine shops, professional paint shop mixing and related materials, and used oil, oil filter and battery recycling. 
CategoriesFrom O'Reilly Auto Parts' official website, the company offers products and services in 31 major categories. These categories are further broken down into smaller sub-categories.  
These categories include: accessories, air conditioning & heating, alternators & starters, battery & accessories, bearings & seals, belts & hoses, brakes, chassis & steering, CV, driveshaft & axle, detailing, engine cooling, engine sensors & emissions, engines & transmissions, exhaust, filters, fuel delivery, gaskets, hardware & fasteners, heavy-duty, Ag & fleet, ignition & tune-up, lawn & garden, lighting & electrical, oil, chemicals & fluids, paint & body, performance, powersport & marine, shocks & struts, tire & wheel, tools & equipment, truck, towing & jeep, and wipers & components. 

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O'Reilly Auto Parts Competitive Landscape-Part 1

From research findings, AutoNation, AutoZone, and Genuine Parts Company have 300, 6,202, and 3,100 physical locations. All three companies offer a variety of products and services in the automotive industry including parts, new vehicles, used vehicles, and vehicle financing. A detailed overview of the research findings follows below.  
AutoNationAutoNation has more than 300 store locations in the United States. 
The company has a total of 26,000 associates (employees) in the United States. 
AutoNation's mission statement is: "To deliver a peerless customer experience."
The company had a revenue of $21.4 billion in the year that ended on December 31, 2018. 
Executive Leadership TeamAutoNation's C-suite executive leadership team comprises of:
 Michael J. Jackson - Executive Chairman.
 Cheryl Miller - Chief Executive Officer and President.
 Jim Bender - Executive Vice President and Chief Operating Officer.
 Marc Cannon - Executive Vice President and Chief Marketing Officer (Communications, Customer Service, AutoNation.com and Public Policy).
 Coleman Edmunds - Executive Vice President, General Counsel and Corporate Secretary (Human Resources, Corporate Development).
 Dave Koehler - Eastern Region President.
 Steve Kwak - Western Region President.
Products and ServicesAutoNation offers a diversified range of automotive products and services that include new vehicles, used vehicles, parts and services - which include automotive repair and maintenance services and wholesale parts and collision businesses, and finance and insurance products - which include vehicle services and other protection products and arranging financing for vehicle purchases through third party finance sources. 
Categories From a sampling of the parts categories AutoNation offers for Toyota, Chevrolet, and Ford, it was determined that the main categories on offer include brakes, engine parts, radiator & cooling, shocks & struts, oil filters, air filters, ignition, wheels & rims, body, bumper, lighting, and induction components.
For accessories, the company offers the following categories: roof racks, floor mats, cargo organizers, cargo trays, mud guards, wheel accessories, exterior accessories, and interior accessories. 
AutoZoneAutoZone has 5,776 locations in the United States. Globally, the company had a total of 6,202 stores in 2018, 20 of which are located in Brazil. 
The company has a total of 96,000 employees. 
AutoZone's mission statement is: "For more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. We have a rich culture and history of going the Extra Mile for our customers and our community."
The company had a revenue of $11.86 billion by August 31, 2019. Additionally, the company had a revenue of $11.22 billion by August 31, 2018.
Executive Leadership TeamAutoZone's C-suite executive leadership team comprises of:
 Phillip B. Daniele - Senior Vice President, Commercial, Customer Satisfaction.
 Mark A. Finestone - Executive Vice President - Merchandising, Supply Chain and Marketing, Customer Satisfaction.
 William T. Giles - Chief Financial Officer and Executive Vice President – Finance and Information Technology, Customer Satisfaction.
 Ronald B. Griffin - Senior Vice President and Chief Information Officer, Customer Satisfaction.
 William R. Hackney - Senior Vice President Merchandising, Customer Satisfaction.
 Domingo Hurtado - Senior Vice President – International, Customer Satisfaction.
 Mitchell C. Major - Senior Vice President – Supply Chain, Customer Satisfaction.
 Thomas B. Newbern - Executive Vice President - Store Operations, Commercial, Loss Prevention and ALLDATA, Customer Satisfaction.
 Charlie Pleas III - Senior Vice President and Controller, Customer Satisfaction.
 William C. Rhodes - Chairman, President and Chief Executive Officer, Customer Satisfaction.
 Albert Saltiel - Senior Vice President, Marketing, Customer Satisfaction.
 Richard C. Smith - Senior Vice President, Human Resources, Customer Satisfaction.
 Kristen Collier Wright - Senior Vice President, General Counsel and Secretary, Customer Satisfaction.
Products and ServicesAutoZone stores offer an extensive product line for cars, sport utility vehicles, vans, and light tracks. These products include new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. 
Many stores also offer commercial sales programs that provide commercial credit and prompt delivery of parts and other products to repair garages, dealers, service stations, and public sector accounts. 
CategoriesAutoZone's major categories include:
Auto parts - batteries, starting & charging, brakes & traction control, collision, body parts & hardware, cooling, heating & climate control, drivetrain, electrical & lighting, emission control & exhaust, engine management, external engine, filters & PCV, fuel delivery, gaskets, ignition, tune up & routine maintenance, interior, internal engine, powertrain, suspension, steering, tire & wheel, and truck & towing. 
Additional categories include interior accessories, exterior accessories, truck and towing, tools and equipment, fluids and chemicals, and performance products. 
Genuine Parts CompanyGenuine Parts Company has a distribution network of over 3,100 operations located in the United States, Canada, Mexico, the Caribbean, Australia, New Zealand, China, and Southeast Asia. 
The company has approximately 50,000 employees. 
Genuine Parts Company's mission statement is: "With over 75 years of distribution expertise, our well-positioned, regionally located distribution centers provide us with the unique ability to adapt our product and service lines to better suit our customers' needs. GPC's commitment and reputation for just-in-time service position us as a critical partner in our customers' success."
The company had a revenue of $18.74 billion in the year that ended on December 31, 2018. 
Executive Leadership TeamGenuine Parts Company's C-suite executive leadership team comprises of:
 Thomas C. Gallagher - Non-Executive Chairman of the Board.
 Paul D. Donahue - President, Chief Executive Officer, Director.
 Carol B. Yancey - Chief Financial Officer, Executive Vice President.
 Scott A. Sonnemaker - Group President - North American Automotive.
 James R. Neill - Senior Vice President - Human Resources.
Products and ServicesThe Automotive Parts Group is Genuine Parts Company's division that distributes more than 530,000 automotive replacement parts, accessory items, and service items throughout North America, Australasia, France, the U.K., Germany, and Poland.
The division's major products include automotive replacement parts, farm and marine supplies, heavy-duty parts, paint and refinishing supplies, tools and equipment, and automotive accessories.
CategoriesGenuine Parts Company's major parts, tools, and accessory categories include agricultural & industrial, alternators & starters, apparel & accessories, batteries, belts & hoses, brakes, drivetrain, engine heating & cooling, engines, parts & gaskets, exhaust, fasteners & hardware, filters, fuel & emissions, headlights, vision & safety, heating, cooling & climate control, ignition, electrical & lighting, interior parts & accessories, marine, RV & powersport, oils, chemicals & fluids, paint, body & equipment, performance parts, safety parts & accessories, small engine, lawn & garden, steering & suspension, tires, wheels & accessories, tools & equipment, transmission, truck & towing, and wipers & accessories.

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O'Reilly Auto Parts Competitive Landscape-Part 2

From research findings, Dorman Products, Motorcar Parts of America, and CarMax have 21, 8, and 217 physical locations. Dorman Products and Motorcar Parts of America offer a variety of products and services in the aftermarket automotive industry while CarMax mainly sells new and used cars. 
 
Dorman ProductsDorman Products has 21 warehouse and office facilities located in the United States, Canada, China, Taiwan, and India. 
The company has more than 2,000 employees across the globe. 
Dorman Products' mission statement is: "To give repair professionals and vehicle owners greater freedom to fix cars and trucks by releasing more exclusive, labor-saving and cost-effective replacement solutions than anyone else."
In the year that ended on December 31, 2018, the company registered an annual revenue of $973.7 million. 
Executive Leadership TeamDorman Products' C-suite executive leadership team comprises of:
 Steven L. Berman - Executive Chairman.
 Kevin M. Olsen - President, Chief Executive Officer & Director.
 David M. Hession - Senior Vice President & Chief Financial Officer.
 Michael B. Kealey - Executive Vice President, Commercial.
 Jeffrey L. Darby - Senior Vice President, Sales & Marketing.
 Joseph P. Braun - Senior Vice President & General Counsel.
Products and ServicesDorman Products is a leading supplier of replacement parts and fasteners for passenger cars, light trucks, and heavy duty trucks in the automotive aftermarket.
The company's products include "automotive and heavy duty replacement parts, fasteners, air suspensions, keyless remotes, window regulators, door lock actuators, loaded knuckles, and other products." 
The company serves clients in the United States and Asia.
Categories Dorman Products offers aftermarket solutions for more than 150,000 parts.
The company groups its products into four major categories:. power-train, automotive body, chassis, and hardware. 
All 150,000+ parts offered fall under one of these four product categories. 

Motorcar Parts of AmericaMotorcar Parts of America has 8 locations in 4 countries and 2 continents.
The company has a workforce of more than 3,000 employees distributed around the world. 
Motorcar Parts of America's mission statement is: "MPA is dedicated to advancing the automotive aftermarket, with an innovative approach that combines sustainable manufacturing processes with advanced quality engineering."
For the fiscal year that ended on March 31, 2019, the company registered an annual revenue of $472.78 million, while for the same period in 2018, the company registered a revenue of $427.55 million. 
Executive Leadership TeamMotorcar Parts of America's C-suite executive leadership team comprises of:
 Selwyn Joffe - Chief Executive Officer and Director.
 David Lee - Chief Financial Officer.
 Kevin Daly - Chief Accounting Officer.
 Rick K. Mochulsky - Senior Vice President of Sales.
 Douglas Earl Schooner - Chief Manufacturing Officer, Senior Vice President - Operations for Under-the-Car Product Lines.
 Juliet Lynn Stone - Vice President, General Counsel, Secretary.
Products and ServicesMotorcar Parts of America manufactures, remanufactures, and distributes automotive aftermarket parts that include alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers. 
The products are utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications.
The company also offers services such as marketing, digital studio, field services, private label, technical services, roadside assistance, merchandising & category management, and "call before you return". 
Categories Motorcar Parts of America's products are mainly categorized into alternators, starters, master cylinders, hub assemblies & bearings, brake power boosters, turbochargers, drum & rotors, brake pads & shoes, and calipers.
The company has more than 13,000 stock keeping units for automotive parts.

CarMaxCarMax has a total of 217 stores in the United States. 
The company has more than 24,000 employees across the United States. 
CarMax's mission statement is: "To provide our customers great quality cars at great prices with exceptional customer service."
For the fiscal year that ended on February 28, 2019, the company registered an annual revenue of $18.71 billion while for the same period in 2018, the company registered a revenue of $17.12 billion. 
Executive Leadership TeamCarMax's C-suite executive leadership team comprises of:
 William D. Nash - President, Chief Executive Officer and Director.
 Thomas W. Reedy - Executive Vice President and Chief Financial Officer.
 Edwin J. Hill - Executive Vice President and Chief Operating Officer.
 James Lyski - Executive Vice President and Chief Marketing Officer
Diane L. Cafritz - Senior Vice President and Chief Human Resources Officer.
 Shamim Mohammad - Senior Vice President and Chief Information and Technology Officer.
 Eric M. Margolin - Executive Vice President, General Counsel and Corporate Secretary.
 Jon G. Daniels - Senior Vice President, CarMax Auto Finance.
 Darren C. Newberry - Senior Vice President, Store Operations.
 Joseph Wilson - Senior Vice President, Store Strategy and Logistics.
Products and ServicesThe main products that CarMax sells is new and used cars. Additionally, the company also offer financing to customers who want to buy cars. 
CategoriesIn 2019, CarMax's main revenue stream came from the sale of cars, broken down as: used - 84%, wholesale - 13%, and other - 3%. 
From research, it was determined that CarMax does not sell aftermarket automotive parts. 

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O'Reilly Auto Parts Competitive Landscape-Part 3

From research findings, Standard Motor Products, Fenix Parts, and Advance Auto Parts have 25, 15, and 5,200 physical locations. All three companies offer a variety of products and services in the aftermarket parts industry. A detailed overview of the research findings follows below. 
Standard Motor ProductsStandard Motor Products operates in more than 25 facilities around the world and the company is a leading independent manufacturer and distributor of replacement parts in the automotive aftermarket.
The company employs approximately 4,400 people in North America, Europe, and Asia. 
Standard Motor Products' mission statement is: "To be the best-in-class, full-line, full-service supplier of premium engine management and temperature control products."
The company had a revenue of $1.092 billion in the year that ended on December 31, 2018. 
Executive Leadership TeamStandard Motor Products' C-suite executive leadership team comprises of:
Lawrence I. Sills - Executive Chairman of the Board.
 Eric P. Sills - Director, Chief Executive Officer & President.
 James J. Burke - Chief Operating Officer and Chief Financial Officer.
 Dale Burks - Executive Vice President and Chief Commercial Officer.
 Ray Nicholas - Vice President Information Technology & Chief Information Officer.
 William J. Fazio - Chief Accounting Officer.
Products and ServicesStandard Motor Products is organized into two major operating segments i.e. "the company supplies independent professional automotive technicians and DIY customers with high-quality replacement parts for engine management and temperature control products for domestic and import vehicles."
The products and services on offer from Standard Motor Products include engine management, temperature control, engineering & manufacturing, and professional training where more than 60,000 technicians have been trained. 
CategoriesAccording to Standard Motor Products' financial report for 2018, the company's has two major segments:
 Engine management - this segment comprises of the following categories: electronic ignition control modules, fuel injectors, ignition wires, coils, switches, relays, EGR
 valves, distributor caps and rotors, various sensors primarily measuring temperature, pressure and position in numerous vehicle systems (such as camshaft and crankshaft position, fuel pressure, vehicle speed and
 mass airflow sensors), electronic throttle bodies, keyless entry transmitters, and park assist sensors. safety-related components, such
 as anti-lock brake (ABS) sensors, tire pressure monitoring (TPMS) sensors and 
 Temperature control - this segment comprises of the following categories: air conditioning compressors, air conditioning compressor repair kits, clutch assemblies, blower and radiator fan motors, filter dryers,
 evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C
 service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window
 regulators and assemblies, and windshield washer pumps.
Fenix PartsFenix Parts has 12 full service and 3 self service used auto parts locations in the United States.
The company has approximately 665 employees.
 Fenix Parts' mission statement is unavailable in the public domain. The closest statement to a mission on the company's website is: "Leading recycler and reseller of OEM automotive products." 
According to Crunchbase, the company has an estimated annual revenue of $133.4 million. 
Executive Leadership TeamFenix Parts' C-suite executive leadership team comprises of:
 Bill Stevens - Chief Executive Officer.
 Jason Finley
 - Vice President of Business Development.
 Dixon Thayer
 - Chairman.
 Tom Brady - Chief Information Officer. 
Products and ServicesFenix Parts is a leading recycler and reseller of original equipment manufacturer (OEM) automotive products in the United States.
The company mainly sells self service used parts and full service used parts. Additionally, the company also facilitates the selling of vehicles from consumers. 
CategoriesAs mentioned above, Fenix Parts recycles and resells automotive parts in the United States. The company sells to both retailers and wholesalers. 
The company focuses on the recovery and resale of OEM parts, components, and systems that are reclaimed from damaged and totaled or low value vehicles.  
A detailed breakdown of the company's categories was unavailable in the public domain. 
Advance Auto PartsAdvance Auto Parts operates "over 5,200 stores, over 100 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada."
The company has approximately 74,000 employees.
Advance Auto Parts' mission statement is: "Passion for Customers…Passion for Yes!."
In 2018, the company had a revenue of $9.58 billion.
Executive Leadership TeamAdvance Auto Parts' C-suite executive leadership team comprises of:
 Thomas R. Greco - President and Chief Executive Officer.
 Natalie Rothman Schechtman - Executive Vice President, Chief Human Resources Officer.
 Jeff Shepherd - Executive Vice President, Chief Financial Officer.
 Sri Donthi - Executive Vice President, Chief Technology Officer.
 Jason McDonell - Executive Vice President, Chief Marketing Officer.
 Andrew Page - Senior Vice President, Controller and Chief Accounting Officer.
Products and ServicesAdvance Auto Parts is one of the largest automotive aftermarket parts provider in North America. The company serves both professional installers and DIY customers.
The company's main products include parts & batteries, accessories & chemicals, and engine maintenance. 
CategoriesAdvance Auto Parts product categories are divided into: air, fuel, emission & exhaust, accessories, body & wipers, battery, electrical & wiring, cooling & heating, electronics & navigation, engines & ignition, tools, fluids & garage, and transmission & drivetrain.
The above auto part categories are further broken down into numerous individual sub-categories. 

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O'Reilly Auto Parts Competitive Landscape-Part 4

From research AAMCO and NAPA have 650 and 6,000 stores respectively. Both AAMCO and NAPA offer a variety of products and services in the automotive repair industry where AAMCO specializes in transmission and total car care while NAPA specializes in automotive replacement parts, accessory items, and service items. A detailed overview of the research findings follows below.
AAMCOAAMCO is one of the largest franchise of transmission specialists and car repair shops in North America. The company has around 650 franchise stores in the United States and Canada.
According to Entrepreneur, an AAMCO franchise store requires at least 4 employees to run. Consequently, with at least 650 franchise stores in the United States and Canada, the company has an estimated 2,600 employees across North America i.e. 650 x 4. The company's profile on LinkedIn puts the number of employees at between 1,001 - 5,000 where a total of 843 employees have LinkedIn profiles. 
AAMCO's mission statement is: "To provide the best auto repair and maintenance."
In 2018, the company had a revenue of $450 million. 
Executive Leadership TeamAAMCO's C-suite executive leadership team comprises of:
 Jim Gregory - Chief Executive Officer.
 Rob Rajkowski  - Chief Operating Officer.
 Bruce E. Chidsey - Vice President of Automotive Technical Support Services and New Program Development.
Products and ServicesAAMCO offers a variety of products and services in car repair across the United States and Canada. In addition to offering transmission services, the company also offers auto care and repair services, corporate/government fleet services, and extended warranty services.
Categories In auto parts and repair, AAMCO's major categories include transmission, brakes, shocks & struts, axles, cooling systems service, clutches, oil, lube & filter change, A/C services, tune-ups, computer reflash, check engine light on, and exhaust & mufflers. 
National Automotive Parts Association (NAPA)NAPA is a subsidiary of the Genuine Parts Company. The company has more than 6,000 stores where 1,000 stores are company owned, 61 distribution centers, and more than 16,000 NAPA AutoCare and AutoCare Collision Centers in the United States. 
According to Crunchbase, NAPA has more than 10,000 employees. The company's LinkedIn profile puts the number of employees at between 5,001-10,000 where a total of 8,350 employees have LinkedIn profiles.
Because NAPA is owned by the Genuine Parts Company, it has a similar mission statement to that of Genuine Parts. The mission statement is: "With over 75 years of distribution expertise, our well-positioned, regionally located distribution centers provide us with the unique ability to adapt our product and service lines to better suit our customers' needs. GPC's commitment and reputation for just-in-time service position us as a critical partner in our customers' success."
According to Crunchbase, NAPA has an annual revenue of $750 million. 
Executive Leadership TeamNAPA's C-suite executive leadership team comprises of:
 Tom Hall - Chief Information Officer.
 Paul D. Donahue -Chief Executive Officer.
 Dan Askey - President 
Products and ServicesNAPA distribution system has more than 500,000 part numbers. 
The company's main products include automotive replacement parts, service items, paint and refinishing supplies, automotive accessories, farm and marine supplies, tools and equipment, and heavy-duty parts. 
Categories NAPA's main categories include agricultural & industrial, alternators & starters, apparel & accessories, batteries, belts & hoses, brakes, drivetrain, engine heating & cooling, engines, parts & gaskets, exhaust, fasteners & hardware, filters, fuel & emissions, headlights, vision & safety, heating, cooling & climate control, ignition, electrical & lighting, interior parts & accessories, marine, RV & powersport, oils, chemicals & fluids, paint, body & equipment, performance parts, safety parts & accessories, small engine, lawn & garden, steering & suspension, tires, wheels & accessories, tools & equipment, transmission, truck & towing, and wipers & accessories.