Strategic Issues Facing AutoZone Business & Marketing Essay (Essay Sample)

Strategic Issues Facing AutoZone
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Strategic Issues Facing AutoZone
The emergence of COVID-19 has had a significant impact on the operation and profitability of AutoZone Inc. The company has been experiencing extreme fluctuations in sales in the third quarter. Such uncertainty and volatility relating to consumer and government response have made it challenging for AutoZone to make any short-term strategies with any confidence degree or certainty (AutoZone, Inc., 2020). It has been difficult for the firm to flex the business quickly, given the dynamism in the current environment. The management has focused on building contingency plans in each value chain link to ascertain the organization's survival during this period. As opposed to concentrating on the structure of partnership based on the leverage and ensuring the most appropriate deal, AutoZone has to shift to determine the strategic alliances that are most appropriate and the transactional ones. Also, as opposed to focusing on short-term profitability, AutoZone should build a reliable and robust organizational immune system. It implies that the company has been experiencing strategic changes in its operations and goals due to the COVID-19 pandemic.