QUOTE AND NEWS
MedPage Today  Dec 9  Comment 
(MedPage Today) -- Investigational drug shows promise in patients who don't respond to erythropoiesis-stimulating agents.
The Economic Times  Dec 9  Comment 
Midas Touch Assets has also been ordered to provide a full inventory of all its assets, securities and properties to the market watchdog Sebi.
Benzinga  Dec 9  Comment 
In a report published Tuesday, Oppenheimer analyst Christopher Marai initiated coverage on Aptose Biosciences (NASDAQ: APTO) with an Outperform rating and $17.00 price target. In the report, Oppenheimer noted, “Aptose is developing APTO-253, a...
Benzinga  Dec 8  Comment 
Celgene Corporation (NASDAQ: CELG) and Acceleron Pharma Inc. (NASDAQ: XLRN) today announced preliminary data from ongoing phase 2 clinical trials in patients with lower risk myelodysplastic syndromes (MDS) at the 56^th American Society of...
Benzinga  Dec 8  Comment 
Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS) today announced the presentation of updated results from an ongoing Phase 1b/2 University of Texas MD Anderson Cancer Center-sponsored trial of vosaroxin in combination with decitabine in older patients...
MarketWatch  Dec 4  Comment 
Keurig Green Mountain Coffee Roaster said Thursday it is acquiring the remaining portion of MDS Global Holding ("Bevyz") that it doesn't already own for $220 million in cash. Keurig currently owns 15% of the company which developed a single...
The Straits Times  Nov 17  Comment 
November 18, 2014 1:24 AM MIDAS Holdings' subsidiary, Jilin Midas Aluminium Industries, has won 151.7 million yuan (S$32.1 million) worth of contracts in China's high-speed train sector.




 
TOP CONTRIBUTORS

Midas(NYSE:MDS) Is one of the largest and most recognized companies that operates automotive repair shops in the U.S and Mexico. They operate under the Midas and speeDee name. As of 2010 they have over 1,600 shops in all 50 U.S states which are both company and franchise owned, and over 800 shops in 14 other countries. In 2008 Midas acquired SpeeDee which does oil change and tune up services with its 106 shops in 11 states to add to its full service repair facilities. [1]

Business Overview

Midas has been in the business of selling automotive repair franchises since 1956 through 2008. In April of 2008 Midas expanded their customer base and presence by acquiring SpeeDee oil change and tune-up franchise. From 1972 to 1998 the Midas was owned by Whitman Corporation and became an independent public company on January 20 1998 when Whitman distributed all issued and outstanding stocks of MDS to shareholders of Whitman stock. They are headquartered in Itasca,IL. Midas offers vehicle maintenance and repair to customers with a warranty that covers things like brake pads, rotors, and any labor that was done on the car to ensure safety and confidence in the job.

Industry Overview

The $165 Billion automotive repaid industry in the U.S is divided into two segments, the D-I-F-M or do it for me market and the D-I-Y segment which make up 87% and 13% of sales respectively. Midas participates exclusively in the DIFM segment. Historically the DIFM segment has been growing because of the constant aging of the U.S automotive fleet and the continual need for repair work.--174.95.53.68 21:25, October 7, 2012 (PDT) T Mangat

Corporate Governance

Lead Director Robert R Schoeberl, 73 Executive Vice President (Retired), Montgomery Ward & Company

Retired in 1994 as Executive Vice President, and Member of the Executive Committee of Montgomery Ward, a mass retailer of consumer products. He was Senior Vice President of Sales and Marketing at GNB Automotive Batteries from 1982 to 1985. Mr. Schoeberl serves as a director of TBC Corporation. (Term Expires 2011)

Chairman, President and Chief Executive Officer Alan D Feldman, 57 Midas, Inc.

Joined Midas in January 2003 as president and chief executive officer. He held senior management posts at McDonald's Corporation from 1994 through March 2002. He became president of McDonald's USA in 1998 and president and chief operating officer of McDonald's Americas in 2001. From 1983 through 1994, he was at PepsiCo, where he served in financial and operations posts at Frito-Lay and Pizza Hut. At Pizza Hut, he was named senior vice president of operations in 1990 and senior vice president, business strategy and chief financial officer, in 1993. Mr. Feldman also is a director of Footlocker, Inc. (Term Expires 2010)

President Thomas L Bindley, 65 Bindley Capital Corporation

President of Bindley Capital Corporation, Mr. Bindley served as executive vice president and chief financial officer of Whitman (now PepsiAmericas, Inc.) from 1992 to 1998. He previously served in a similar post at Square D Company. (Term Expires 2011)

Former Chairman Archie R Dykes, 78 Capital City Holdings, Inc.

Chairman of Capital City Holdings, Inc., a venture capital organization, from 1988 to 2004. From 1980 through 1987, Dr. Dykes was chairman and chief executive officer of Security Benefit Group of Companies. He was Former Chairman of Fleming Companies, Inc. Lead Director, Pepsi Americas, Inc. and is a director of Raytech Corporation and Arbor Realty Trust, Inc.(Term Expires 2010)

President and Chief Executive Officer Jarobin Gilbert Jr., 63 DBSS Group, Inc.

President and Chief Executive Officer of DBSS Group, Inc., a management planning and international trade advisory firm he founded in 1992. He previously served in several executive posts with National Broadcasting Company. Mr. Gilbert also is a director of PepsiAmericas, Inc., Atlantic Mutual Companies, and Footlocker, Inc. (Term Expires 2012)

Senior Member, Executive Staff Diane L Routson, 52 Computer Sciences Corporation

Senior Member of Executive Staff, Computer Sciences Corporation, a business and technology consulting and outsourcing company. Was Senior Vice President and Chief Financial Officer of MTL Insurance Company from 1995 to 2005, the principal operating subsidiary of Mutual Trust Holding Company of Oak Brook, IL. (Term Expires 2012)

Competitors

Meineke Car Care

Meineke started in 1972 and till 2003 was owned by a multinational British company. Since 2003 it has grown very rapidly and has expanded by buying other companies like Maaco, Econo Lube n' Tune, Aero Colours, and Tortal. Currently there are around 900 franchises in the United States, Mexico, Brazil, China, Saudi Arabia, and the Caribbean. Comparing Meineke to Midas you see that Midas has a substantial advantage on Meineke by the number of farnchises both in the United States and abroad.

Monro Muffler and Brake

Monro was founded in 1957 and it was actually originally a franchise of Midas which then branched off and became a direct competitor in the same industry. Monro made its IPO in 1991 on the NYSE (MNRO) and has since been expanding outside of new york and most recently into the mid-West. Monro has always believed that there should be more services availible than that of its competitors and they recently added a tire chain and warehouse to its resume which is something Midas does not offer.

Image:MidasvsMonro1.gif

As you can see from this graph Midas has a considerable advantage in number of locations but also there has been a steady year after year decrease in locations for Midas whereas for Monro there has been an increase in stores opening no including last year. I think that this shows Midas has opened so many stores that it is cutting into the profitability of the company and they realized that it might be a better idea to have less stores each with greater volume compared to opening more stores each with less volume. Monro on the other hand is growing and it makes sense to open more stores in locations where there are no Monro shops around.

Marketing Strategies

Price

The price in this industry is fairly standard and very competitive because of the large number of suppliers companies like Midas can choose from. Midas also gets a discount on parts because of the large amount they purchase from local stores and nationwide chain stores.

Product

The product Midas sells is labor for maintenance and repair of vehicles, Midas does not make parts or sell them but they do install them on cars for customers.

Place

Midas is a large nationwide chain with presence in a large portion of the U.S.

Promotion

Midas has ads on TV and also coupons that come in the mail to customers every week. A typical coupon is for a $19.99 oil change and tire rotation.

Image:1989Midas.gif [2]

Image:2009Midas.gif [3]

Midas has come a long way since 1989 as far as diversification. When it first started it was strictly a muffler shop and since then it has branched out into doing full service maintenance and with its acquisition of "SpeeDee" oil change and tune-up they are focusing more on being a one stop shop as far as car repairs and maintenance goes and this has helped its sales and growth tremendously because they can now compete better with other vehicle maintenance chains.

Porter's 5 Forces Analysis

Bargaining Power of Consumers

Porter's Five Forces of buyer bargaining power refers to the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices. When analyzing the bargaining power of buyers, the industry analysis is being conducted from the perspective of the seller. According to Porter’s 5 forces industry analysis framework, buyer power is one of the forces that shape the competitive structure of an industry.The bargaining power of consumers is high in this industry. One reason is that there are dozens of repair shops ranging from large nation wide franchises like Midas to mom and pop shops on at least one corner in every town.

Bargaining Power of Suppliers

In Porter's five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier power, the industry analysis is being conducted from the perspective of the industry firms, in this case referred to as the buyers. According to Porter’s 5 forces industry analysis framework, supplier power, or the bargaining power of suppliers, is one of the forces that shape the competitive structure of an industry. The bargaining power of suppliers in this industry is low. There are lots of different OEM and aftermarket suppliers that make parts for all makes and models, this means Midas has the ability to compare prices and the cheaper they can get the parts for the better it is for their bottom line.

Threat of New Entrants

In Porters five forces, threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. A profitable industry will attract more competitors looking to achieve profits. More competition – or increased production capacity without concurrent increase in demand – means less profit to go around. The threat of new entrants is one of the forces that shape the competitive structure of an industry. The threat of new entrants into the automotive repair industry is moderate. It does take a pretty significant investment to start a repair facility, not to mention hiring mechanics which can actually repair cares reliably. That being said it is a lot easier to enter this industy than say the car manufacturing industry where you would need to spend billions of dollars on R&D to design and manufacture a vehicle from scratch.

Threat of Substitutes

Porter's threat of substitutes definition is the availability of a product that the consumer can purchase instead of the industry’s product. A substitute product is a product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry. According to Porter’s 5 forces, threat of substitutes shapes the competitive structure of an industry. Threat of substitutes in this industry is low. This is because as every car ages it needs maintenance from time to time. Unless you are the few (like me) who actually have an interest in learning about automotive repair and have the time to repair and maintain your own car, there is no substitute for going to a repair shop and paying to have your car worked on.

Rivalry Amongst Competitors

The intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another. If rivalry is fierce, competitors are trying to steal profit and market share from one another. This reduces profit potential for all firms within the industry. The intensity of rivalry among firms is one of the main forces that shape the competitive structure of an industry. The rivalry amongst competitors in this industry is high. There is a lot of profit to be made in this industry but when you think about the fact that any auto repair shop has to get its parts from a supplier because they obviously cannot manufacture them, you run into the problem that they are all picking from the same parts suppliers which are themselves in a rivalry for the lowest cost. Keeping this in mind, you see that there won't be a large deviation in prices from these suppliers of parts so the margin to be made off of the parts is going to be small since all of the prices will be very close.

SWOT Analysis

Strengths

Midas is a very strong brand name and is well known, perhaps more so than its competitors because it has a strong marketing presence and weekly ads in the newspaper.

Weaknesses

A weakness Midas has is that it is not really a "one-stop shop" as some of its competitors are. Midas only concentrates on maintenance and tune ups where Monro also has a tire section in their stores and this gives them a competitive advantage over Midas.

Opportunities

With the economy going through recession recently, there has been a large push to save money in any way possible. When consumers are faced with the decision to either buy a new car or fix up an older car they are increasingly choosing to fix up an older car and keep driving that car for longer. This gives Midas an opportunity to expand its customer base to people who would normally not put money into an older car but now have no choice.

Threats

Midas' biggest threat is the growing number of competitor franchises in this growing industry. The United States is being continually saturated with car care facilities because it is a very large and profitable industry.

References


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