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Asbury Automotive Group Inc

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

HomeSWOT AnalysisAutomotiveAsbury Automotive Group Inc

Introduction

Our coverage of the world’s largest 10,000 companies includes this definitive study on Asbury Automotive Group Inc. It is regularly updated on an accelerated schedule to ensure the latest content is available.

Premium members of the Asbury Automotive Group Inc website have full access to the study, which includes a SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and predict synergies between Asbury Automotive Group Inc and other organisations, apart from the sections that are driven by analysis.

Company Description

Asbury Automotive Group Inc is a Fortune 500 company headquartered in Duluth, Georgia, founded in 1995. It is one of the largest automotive retailers in the United States, providing new and used vehicles, vehicle service and maintenance, parts, and financing services to its customers. Asbury serves both domestic and international markets and is focused on providing an outstanding customer experience.

Industry Overview

Asbury Automotive Group Inc is a publicly-traded automotive retail and service company, operating in the US and Europe. The global automotive industry is estimated to be worth over 1.7 trillion US Dollars, with over 150 million employees worldwide. The US automotive market alone is estimated to be worth over 949 billion US Dollars, with over 4.7 million employees. Lastly, the majority of employees in the global automotive industry are based in Asia, with China alone accounting for 8 million employees.

Industry Classification

In terms of formal classification, Platform Executive has tagged Asbury Automotive Group Inc as a business operating within the Automotive Parts industry.

Table of Contents

1.  Introduction
2.  Company Description
3.  Industry Overview
    3.1  Industry Classification
4.  Intellectual Property
5.  Major Products and Services
6.  Key Competitors
7.  Stakeholders
8.  Value Proposition
9.  Customers and Cohorts
10.  Competitive Advantages
11.  Market Trends
12.  Key Performance Indicators
13.  Financials (BETA)
    13.1  Highlights
    13.2. Board members
    13.3  Share Performance
    13.4  Income Statement
14.  PESTLE Analysis
15.  Potential Products/Services
16.  Potential Synergies
17.  Porter's Five Forces
18.  CATWOE Analysis
19.  SWOT Analysis
    19.1  Strengths
    19.2  Weaknesses
    19.3  Opportunities
    19.4  Threats
20.  5C Analysis
21.  MOST Analysis
22.  Innovation Scorecard
23.  Appendices
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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method And System For Automatically Tracking Vehicle Maintenance
Patent ID: 10,822,325
Date: 2020-10-20

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,821,839
Date: 2020-10-20

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,794
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,793
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,792
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,791
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,790
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,789
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,788
Date: 2020-10-13

Patent Title: System and Method for Automated Vehicle Maintenance
Patent ID: 10,818,787
Date: 2020-10-13

Major Products & Services

The main products and/or services commercialised by this business include the following:

  • Automotive Sales: New and pre-owned cars, trucks, and SUVs, including luxury and commercial vehicles.
  • Automotive Service: State-of-the-art service centers offering routine maintenance, repairs, and parts replacements.
  • Automotive Financing: Flexible financing options to meet customers’ needs.
  • Vehicle Protection: Extended warranties, vehicle protection plans, and roadside assistance.
  • Value-Added Services: Car washes, detailing services, and complimentary multi-point inspections.

Key Competitors

We have identified the following organisations as being key competitors:

  • Sonic Automotive
  • Group 1 Automotive
  • Penske Automotive Group
  • AutoNation
  • Lithia Motors
  • Van Tuyl Group
  • CarMax
  • Hendrick Automotive Group
  • Rush Enterprises
  • Lithia Motors Inc
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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Customers are a key stakeholder for Asbury Automotive Group Inc. as they are the primary source of revenue for the business.

2. Employees: Employees are another important stakeholder group for Asbury Automotive Group Inc. as they are the ones responsible for providing customers with quality services and products.

3. Suppliers: Suppliers are an important stakeholder group for Asbury Automotive Group Inc. as they provide the business with the necessary materials and components to construct and maintain its products and services.

4. Investors: Investors are also a key stakeholder group for Asbury Automotive Group Inc. as they provide the business with the capital necessary to fund its operations.

5. Government: Government is another important stakeholder for Asbury Automotive Group Inc. as it provides the regulations, laws, and incentives that shape how the business operates.

6. Community: The local community is also a key stakeholder.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Asbury Automotive Group Inc different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Asbury Automotive Group Inc and its position within the marketplace.

The value proposition for Asbury Automotive Group Inc. is to provide customers with quality automotive service and repairs. We believe that our customers will appreciate our honest and reliable service.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Superior Customer Service: Asbury has established a reputation for delivering superior customer service and satisfaction. They offer a wide range of services, from car sales and repairs to parts and accessories. This allows them to be a one-stop shop for customers, providing convenience and value.

Innovative Technology: Asbury has been at the forefront of automotive technology, introducing innovative tools and services that have helped them stand out from the competition. This includes offering online car shopping and research tools, as well as advanced customer service tools such as live chat.

Experienced Leadership: Asbury has a team of experienced and knowledgeable leaders at the helm of the company who have a strong track record of success. This includes CEO Craig T. Monaghan, who has been with the company since 2005 and is known for his customer-focused approach.

Financial Strength: Asbury has a strong financial position, with a debt-to-equity ratio of 0.79 and a current ratio of 1.

This gives them the financial flexibility to invest in their business and continue to grow.

Strong Brand Recognition: Asbury has a strong brand recognition in the automotive industry and is widely known for its quality products and services. This gives them an edge over competitors who may not have the same level of recognition.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

  • Private vehicle owners
  • Corporate and fleet customers
  • Automotive dealerships
  • Government and other institutional customers
  • Online customers
  • Service providers
  • Commercial customers
  • Export customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Key Market Trends
Increasing Demand for Electric and Hybrid Vehicles: Asbury Automotive Group Inc. is likely to be affected by the increasing demand for electric and hybrid vehicles over the coming years. The trend towards more eco-friendly vehicles is expected to continue, and Asbury Automotive Group Inc. will need to invest in electric and hybrid vehicle inventory in order to remain competitive in the market.

Rise of Online Automotive Shopping: Asbury Automotive Group Inc. will need to be prepared to adapt to the rise of online automotive shopping in the coming years. Customers are increasingly turning to online automotive retailers to research and purchase vehicles, and Asbury Automotive Group Inc. will need to develop a strong online presence and e-commerce platform in order to remain competitive.

Growing Popularity of Used Vehicles: Asbury Automotive Group Inc. will need to be prepared to meet the growing demand for used vehicles over the coming years. Customers are increasingly turning to used vehicles due to their lower costs and environmental benefits, and Asbury Automotive Group Inc. will need to invest in used vehicle inventory in order to remain competitive.

Increased Focus on Automotive Technology: Asbury Automotive Group Inc. will need to be prepared to invest in automotive technology in the coming years. Customers are increasingly demanding vehicles with advanced safety and convenience features, and Asbury Automotive Group Inc. will need to invest in research and development in order to remain competitive.

Key Performance Indicators

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Asbury Automotive Group Inc include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Financials

Key Personnel

Income Statement

[eod_financials target="ABG.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Car Accessories and Upgrades: Asbury Automotive Group Inc could offer their customers car accessories and upgrades to customize and improve their vehicles. This could include things like spoilers, rims, window tinting, and audio systems.

Mobile Repair Services: Asbury Automotive Group Inc could offer customers mobile repair services. This would allow customers to have their car serviced without having to leave their home or workplace. This could include routine maintenance and minor repairs.

Car Rental Services: Asbury Automotive Group Inc could offer customers car rental services. This could be a convenient and cost-effective way for customers to get a reliable car for short-term or long-term use.

Car Wash Services: Asbury Automotive Group Inc could offer customers car wash services. This could include both full-service car washes and express car washes. This would be a convenient way for customers to keep their cars looking great.

Vehicle Insurance: Asbury Automotive Group Inc could offer customers vehicle insurance. This could include liability, comprehensive, and collision coverage. This could provide customers with peace of mind and protection in the event of an accident or theft.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Carvana
2. AutoNation
3. Penske Automotive Group
4. CarMax
5. Group 1 Automotive
6. Sonic Automotive
7. Lithia Motors
8. Berge Group
9. DriveTime Automotive Group
10. Serra Automotive Group

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries
Porter's 5 Forces is a framework that is used to analyse an industry and help determine a company's competitive position. The 5 forces are:

1. Threat of new entrants: Asbury has a HIGH barrier to entry due to the HIGH cost of setting up a dealership and the need for a good location. The company scores WELL in this area.

2. Threat of substitutes: There are many substitutes for new and used cars, such as public transportation, bicycles, and walking. However, Asbury has a wide variety of vehicles and services that make it a one-stop shop for car needs, which gives it a competitive advantage.

3. Bargaining power of suppliers: Asbury has strong relationships with its suppliers and is able to negotiate favorable terms. The company scores WELL in this area.

4. Bargaining power of buyers: There are many car dealerships to choose from, so buyers have a lot of bargaining power. Asbury offers competitive prices and financing options that give it a competitive advantage.

5. Competitive rivalry: The automotive industry is very competitive, but Asbury has a strong brand and reputation that give it an advantage.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

PESTLE Analysis

CATWOE Analysis

CATWOE

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

  • Customers
  • Actors
  • Transformation process
  • World view
  • Owners
  • Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Asbury Automotive Group Inc provides services to customers who are looking for a new or used vehicle, or for service and repairs on their existing vehicle, as well as customers who are looking for auto financing.

Actors: The actors involved in Asbury Automotive Group Inc are the customers, employees, management, suppliers, and the local and state governments.

Transformation process: The transformation process at Asbury Automotive Group Inc involves providing customers with vehicles and services that meet their needs and expectations. This is done by providing a wide selection of vehicles, offering competitive pricing, and providing quality service and repairs.

World view: Asbury Automotive Group Inc has a world view of providing quality vehicles, services, and repairs to its customers in a timely and efficient manner. The company also works to provide a positive customer experience and strives to be a leader in the automotive industry.

Owners: Asbury Automotive Group Inc is owned by its shareholders who have invested in the company and are active in its operations.

Environmental constraints: Asbury Automotive Group Inc must adhere to all applicable laws and regulations, as well as ethical standards and practices. The company must also be mindful of the environmental impacts of its operations, and ensure that its operations are in compliance with applicable laws and regulations.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Asbury Automotive Group Inc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis

Strengths

Below is a list of the strengths we have identified for the business:

1. Strong financial position: Asbury Automotive Group Inc. has a strong financial position with a net worth of over $1.5 billion as of March 31, 2017. The company has a history of paying its debts and has a strong liquidity position.

2. Well-managed operations: Asbury Automotive Group Inc. has a well-managed operations with a strong history of profitability and growth. The company has a strong history of investing in its operations and has a well-developed supply chain.

3. Extensive network of dealers: Asbury Automotive Group Inc. has an extensive network of dealers with more than 1,000 dealerships in the United States. The company has a strong presence in key markets and has a history of developing and growing its dealerships.

4. Strong brand and product presence: Asbury Automotive Group Inc. has a strong brand and product presence with a history of innovation and leadership in the automotive industry. The company has a strong product lineup with a wide range of products and services.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Increase customer service standards: Asbury Automotive Group Inc. should strive to set higher customer service standards by scheduling regular customer satisfaction surveys, implementing customer loyalty programs, and providing personalised customer support.

2. Implement cost-saving measures: Asbury Automotive Group Inc. should identify and implement cost-saving measures to improve operational efficiency and reduce overhead costs. This could include streamlining processes, increasing automation, and investing in energy-efficient technologies.

3. Expand market presence: Asbury Automotive Group Inc. should aim to expand market presence through targeted advertising and marketing campaigns. This could include strategic partnerships, online advertising, and digital marketing initiatives.

4. Leverage technology: Asbury Automotive Group Inc. should leverage the latest technology to improve operational efficiency and customer service. This could include implementing customer relationship management (CRM) systems, deploying AI-driven analytics, and utilizing predictive maintenance tools.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus on customer experience: Asbury Automotive Group Inc. has been criticised for its lack of focus on the customer experience. In particular, the company has been criticised for its lack of focus on the sales process, service process, and follow-up.

2. Lack of differentiation: Asbury Automotive Group Inc. has been criticised for its lack of differentiation in its product and service offerings. In particular, the company has been criticised for its lack of focus on the customer experience and its reliance on mass marketing techniques.

3. Over-reliance on new vehicle sales: Asbury Automotive Group Inc. has been criticised for its over-reliance on new vehicle sales. In particular, the company has been criticised for its lack of focus on used vehicle sales and its reliance on extended warranty and service contracts to generate profits.

4. Poor financial management: Asbury Automotive Group Inc. has been criticised for its poor financial management. In particular, the company has been criticised for its use of debt to finance its operations, its lack of transparency in its financial reporting, and its high overhead costs.

Threats

Below is a list of the threats we have identified for the business:

1. Competitive Threats: Asbury Automotive Group Inc faces competition from local and national car manufacturers, online auto sales platforms, and other car dealership groups. As competitors offer more competitive prices and related services, it may reduce the demand for Asbury's products and services, which could significantly affect the company’s revenue and profitability.

2. Economic Threats: Economic downturns, inflation, and high interest rates can all lead to decreased customer spending, which could affect Asbury's bottom line. In addition, high gas prices can reduce customer demand for larger, more expensive vehicles, which could also affect the company's profitability.

3. Technological Threats: Asbury must continually invest in new technology and infrastructure to remain competitive. This includes updating their online sales platform, investing in customer relationship management software, and expanding their customer service offerings. Failure to do so could result in lost market share.

4. Regulatory Threats: Asbury is subject to various federal, state, and local laws, regulations, and licensing requirements. Changes in these laws and regulations can significantly affect the company's business, including the cost and availability of financing, taxes, and environmental compliance.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.
This (concise) 5C analysis examines the external and internal environment for Asbury Automotive Group Inc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Asbury Automotive Group Inc, as well as areas where the company needs to improve its operations or strategy.
Company: Asbury Automotive Group Inc. is an automotive retail and service company that sells new and used vehicles, provides aftermarket parts and services and distributes replacement parts. It operates in the United States, United Kingdom, and Brazil and has over 100 dealerships in nine states.

Collaborators: Asbury Automotive Group Inc. partners with many service providers and automotive parts suppliers. These include Vehicle Service Group, Shell Oil Products, and Ford Motor Company.

Customers: Asbury Automotive Group Inc. caters to customers who are looking for reliable and affordable vehicles that meet their needs. They also offer services and parts for these vehicles to maintain and extend their life.

Competitors: Asbury Automotive Group Inc. faces competition from other automotive retailers such as AutoNation and Group 1 Automotive.

Content: Asbury Automotive Group Inc. provides a wide range of content on its website, such as vehicle research and reviews, financing options, service and parts information, and customer testimonials. The company also promotes its products and services through social media and other digital channels.
5C Analysis

MOST Analysis

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

  • Mission
  • Objectives
  • Strategy
  • Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Innovation Scorecard

Below is a guide to each score:

Industry score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Asbury Automotive Group Inc as having an innovation score of C2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Asbury Automotive Group Inc forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

All Rights Reserved.

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 23rd May 2023

Industry Keywords

Related keywords:
AutomotivePartsRetailService
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