O'Reilly Auto Parts 2005 Annual Report Download - page 15

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13
O’REILLY AUTOMOTIVE 2005 ANNUAL REPORT
Our strategy of serving both the professional installer
and do-it-yourself (DIY) customer is a core competency
unmatched in our industry. Maintaining an approximate
50/50 blend between these groups enables us to expand and
operate in markets that would not otherwise be large enough
for a traditional auto parts store. Our dual market strategy
also enables us to take advantage of growth in demand for
both customer groups and provides consistent financial per-
formance that is difficult to achieve for competitors that are
primarily reliant on only DIY or professional installer sales.
We have established a legacy of service to professional
installers because we consistently provide needed parts faster
than our competitors while always providing exceptional
service and support. We devote the resources to support the
professional installer with full-time sales specialists dedicated
to developing our relationships with these customers. Our
support programs continually update our commercial
customers on new developments in automotive technologies
and our highly trained Professional Parts People provide
an excellent resource. These efforts support our customers
by meeting the needs of their business and are what makes
us the “First Call” in the markets we serve.
Our DIY customers have also grown to rely on our
superior customer service. Our stores are conveniently
located and provide a large inventory to ensure our
customers have access to the part they need, when they
need it. Our DIY customers benefit from the expertise
that our Professional Parts People employ to serve the
professional installer. We make certain that our parts are
competitively priced by consistently conducting reviews of
our competitor’s prices. Our pricing is determined based
upon these reviews and internal gross margin targets and
most of our products are priced at a discount to the
suggested manufacturer’s price.
Whether it’s a professional installer needing to keep
their bays turning or a do-it-yourselfer needing to get their
car back on the road, our customers know that O’Reilly
has “better parts at better prices … everyday.”
Competitive Advantage
Dual Market Strategy
We believe that our unique ability to successfully service a balance of professional and DIY customers
has enabled us to gain market share in many of the communities that we service.
dual market
strategy overview
51.9%
do-it-yourselfers professional installers
48.1%