StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road - Essay Example

Comments (0) Cite this document
Summary
It is has it’s headquarter at Richmond. It is origin is traced back to Circuit City. By 2009 physical year it was selling194, 081 whole sale cars with 345, and 465 in retail. CarMax has seen a steady growth since its birth. Today…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road
Read TextPreview

Extract of sample "Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road"

CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road? al Part of 2 Case Study CarMax is currently a top store in used cars. It is has it’s headquarter at Richmond. It is origin is traced back to Circuit City. By 2009 physical year it was selling194, 081 whole sale cars with 345, and 465 in retail. CarMax has seen a steady growth since its birth. Today it gives the buy for consumers as it ensure both value and price that is customer friendly (Debra, 2010).
The company has well-structured value chain based on its huge economies of scale. Large store allows the company to spread its operation costs to reduce the impact of price strategies. The Company apart from use of price wars CarMax ensures that its products are of quality and valuable to its customers. As a result, it has strong competitive advantage with customer retention powers. CarMax acquire its products by ins. As a result it maintains a quality inventory. It ensures that customers are capable of reaching its outlets by constant expansion of its outlets (Debra, 2010).
CarMax has a well-managed inventory system as a competitive advantage. This allows for differentiated brands and different in pricing. It is no ‘haggle’ methods ensure that the customers experience high value of the products. SWOT analysis of CarMax indicates strength of quality products, no haggle pricing and customer satisfaction. The major Weakness of CarMax is its high prices. Several opportunities are seen in CarMax which includes wide expansion, backward supplier integration and better customer services. The major threats facing the organization are political situations, economical changes, high competition in the market and high overhead cost per created new store (Debra, 2010).
Part 2 of 2
Answer questions 1-4 using only the above information and reference provide at bottom
Discussion Questions
1. Describe the external forces for change that seem to be affecting CarMax.
Several external forces affects the CarMax includes; political tensions such as September 11 terror attack. The result is shift on attention of people as well as financial system. Economic depression such as the one witnessed in 2007 -2009 period made changes in purchasing power as well as consumption power hence reduced sales of the company. The strikes of natural disasters as well affected the normal operations of the company and financial allocation. Finally, shifts in gas prices made lowered purchases since many could not afford to maintain their cars (Debra, 2010) .
2. Describe the internal forces for change that seem to be affecting CarMax.
Several internal changes have been observed in the organization, these were mainly brought about by shift in economy. Lean economic times brought about reduction in car inventory to meet the customers demand. Attritions and scheduling were also resultants of recession. CarMax experienced changes in marketing volume as well as fund allocations.
3. Using force field analysis, explain CarMax’s development as a business enterprise.
CarMax Five Forces
Threat to new entrants: This industry is characterized by high cost fixed inventories that new entrants find hard to achieve. Additionally CarMax has extensive supply and distribution channel that are hard to be broken by new entrants. Finally, high economies of scale that this company holds make it hard for new entrants to operate in its field.
Competition Intensity: The Company has developed very stiff competitive strategies from both car dealers as well as individuals. In addition, it has retained its customers through price and value.
Supplies bargaining powers: In this market, suppliers have strong bargaining powers since they can cut the channel directly to meet the customers with their products.
Buyers bargaining Powers: There is no switching cost in this market while customers are very price sensitive.
Threat of substitutes: Although there are alternative, product differentiation is small as all are cars.
4. Explain the development of CarMax from the perspectives of incremental, strategic, and transformational changes.
CarMax have several market play strategies to survive in the market. It is product are used modern cars which incrementally is expected to attract large number of customers. Apart from this, CarMax also plays price wars to ensure it gains market advantage. This is in addition to provision of quality products in the market (Debra, 2010).

Work Cited
Debra L & Campbell Q. (2010). Organizational Behavior: Science, The Real World, and You. 7th Edition (Kindle Locations 18246-18251). Cengage Learning. Kindle Edition. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Essay”, n.d.)
Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Essay. Retrieved from https://studentshare.org/management/1594505-chapter-18-carmax-the-used-car-superstore-smooth-ride-or-a-rocky-road
(Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Essay)
Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Essay. https://studentshare.org/management/1594505-chapter-18-carmax-the-used-car-superstore-smooth-ride-or-a-rocky-road.
“Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Essay”, n.d. https://studentshare.org/management/1594505-chapter-18-carmax-the-used-car-superstore-smooth-ride-or-a-rocky-road.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road

Duke Used Car Dealer

...? Duke Used Car Dealer Task Duke Used Car Dealer Duke should integrate as this will allow him to do his activities without worrying that he might lose his home, car or personal savings because of a business liability (HG, 2012). 2. Duke needs to come up with a business plan. According to Growthink.ideas.capital.action (2005), the first vital module of a corporate strategy is the Executive Summary; this provides a succinct synopsis of the business plan and highlights the key points raised within. The Executive Summary has to converse to the probable investor the size and scope of the market opportunity, the venture's business and profitability model, and...
3 Pages(750 words)Assignment

Carmax System in China

...?Carmax System in China In the U.S, CarMax is an established firm with impressive performance in used car market. For example, in alone, the company posted an annual sales volume of $1 billion in car auctions, which was a 33% increase in units sold by the company (CarMax, 2012). The company expects to open five new stores in 2012 in the U.S market, with a total of 103 used car stores across U.S by the end of 2011, making CarMax the largest used car company in the U.S. The online market is the most active market, with more than 75% of used...
3 Pages(750 words)Essay

Police Ride

...Traffic Offense Another traffic incident that occurred during my ride-along was that of a motorist that had gone the wrong way down a one-way street. This time, Officer Franz witnessed the incident and pulled the driver over. After Officer Franz asked for his license, registration, and other information, which was given willingly, he issued a warning ticket to the driver so that should the same thing happen again, he could be cited more seriously the next time. I was interested to learn something that I had not known previously, which was that there was a computer log that would be kept of the incident, along with a picture taken of the car and license plate which was then entered into the Intel program...
18 Pages(4500 words)Assignment

Legal Advice: CarMax Expansion Initiative

...? Legal Advice: CarMax expansion initiative [Insert [Insert and Unit [Insert [Insert Legal Advice: Car Max training initiative Introduction Car Max is the largest seller of used cars in the United States; it is headquartered in Richmond, Virginia on 12800 Parkway, Tuckahoe Creek. The company has 1200 employees and 107 superstores for used cars in 107 locations. CarMax is a large company and is found in the Fortune 500 and the S&P 500 list, and was voted among the best 100 companies to work for in the US by FORTUNE magazine 2012. CarMax offers great...
5 Pages(1250 words)Term Paper

Rocky Mountains

...The Rocky Mountain Region is a vast cordillera that occupies the western interior of North America. Specifically, the Rocky Mountains run from New Mexico in a northerly direction to the most northern reaches of British Columbia in Canada. The Rocky Mountain Region is bordered by the Great Plains to the east and the Intermontane Region to the west. The Rocky Mountain Region is defined by striking physical features and an uneasy and ever-changing relationship with human settlement and population. The origins of the Rocky Mountains accounts for the dramatic topography of the region. The Rocky Mountains were once covered by a shallow...
6 Pages(1500 words)Essay

Car aerodynamics

...automotive aerodynamics. The tunnel is sometimes furnished with a rolling road to achieve most accurate results from a wind tunnel test. The rolling road is a movable floor like the floor of at treadmill and moves at a particular speed as the air flows in. This affects the results by preventing the formation of a boundary layer on the working area floor. Aerodynamic drag is present in all kinds of objects. The density, temperature, and pressure of the fluid, the drag coefficient, and the frontal area of the object affect the force of drag on a particular object. “Drag determines the car’s top speed, and can be as important as the engine power. For road...
4 Pages(1000 words)Essay

Smooth talk

...person intends to lead to grave. Such illustrations suggest a guise assumes that death is a projection from the mind of the other victim (Rubin and Larry 57). Connie’s destination is not a place, but its union with death, she indicates that when she first sees him was in a restaurant. Christine realizes he appears older than he appears. His conduct becomes increasingly stranger and more threatening he ultimately fails to entice Connie, when she notices the white horror beneath the mask. As a seducer, he seems to make Connie’s union with him or put it in another way, he consistently sabotages the smoothness of the transition by revealing his other worldly look. He promises to come inside with her reflects flagrantly...
2 Pages(500 words)Essay

Rocky movie

...Rocky Movie Rocky is a movie that stars Sylvester Stallone. The star’s in the movie is Rocky Balboa and the of the movie is “Rocky.” I chose the movie because it is one of the most watched and liked movies globally. The move is intertwined between family and work thus showing us the way the star was able to balance the two. Also, the movie tells how an individual’s determination can raise him or her from poverty to living a life worth of admiration. Similarly, it teaches us on being smart accountants of the little fortune we acquire. The movie revolves around Balboa who is a starting boxer and has no direction in life. He collects loans...
2 Pages(500 words)Movie Review

How to buy a used car

...Informative Speech: How to buy a used car Central Idea: To inform General Purpose: To inform my audience about how theycan purchase a used car. Specific Purpose: To inform my audience as to how they can purchase a used car without getting having heartaches in the process. I. Tired of public transport? A. Put this into perspective: What do you do when you are tired of public transport? 1. What happens when your tolerance for public transport suddenly wanes? 2. You are constantly pummeled by the jostling that is characteristic of the public transport system. 3. You get home so tired every day when you get off work. B. Well, this is...
2 Pages(500 words)Essay

Main Problems in Rocky Road School District

...Main Problems in Rocky Road School District Arriving into a new school district that is disastrous and full of problems and be stressful and overwhelming for a Superintendent but things can always be turned around. The first initial step is to take control of the situation immediately and figure out which issues need to be addressed first. When reviewing the Rocky Road School District, a few of the issues include but are not limited to; lawsuits from past parents and teachers, teacher contract negotiations, low test scores and a disconnect between parents and school because of bad communication. Each of these issues will need a plan of action to ensure that issues are handled in a timely fashion. When these issues are handled... report....
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Chapter 18: CarMax, the Used-Car Superstore: Smooth Ride or a Rocky Road for FREE!

Contact Us