In early 1990s, CarMax was founded as an experiment by Circuit City to grow its business using. The first CarMax store was opened in 1993 and the business went well. After Circuit City spun off CarMax as an independent company, Circuit City went bankrupt while CarMax was still growing. Meanwhile, despite the growth of business, CarMax is constantly facing challenges specifically on how to maintain its business and compete the competitors. This is the key problem of CarMax that I am trying to resolve
Introduction Carmax (NYSE:KMX) is in a slight tight situation now, as investors and Wall Street thinks of new and used car market being on top while its net profit is declining. As an example, when Carmax’s first quarter results were not able to match the expectations, its stock price fell nearly 5%. This clearly points out the question on Carmax’s proven tremendous growth story. Economic Conditions According to Carmax annual report (2016), used car retailing business is dependent on many economic
Problem Statement: CarMax faces challenges from several fronts that could threaten to disrupt their growth plans and their position as a disruptor in the used car market. The biggest challenge they face is being able to continuously secure a study supply of high quality used cars, due to the extremely competitive nature of the used car market. CarMax offers cutting edge technology to help the company identify buying trends, pricing trends, and consumer preferences down to the zip code that
Introduction/Objective: Team 1 selected the short case study of CarMax vs. AutoNation vs. ZAG, (De Wit, & Meyer, 2010). Each member of the team reviewed the selected reading to identify the changes in the business model, convergence, compliance and the paradox within the case study. This case study was brief, but very informative and provided an excellent example of the effects that business model change can have on the automotive industry. By challenging industry rules tension was noted, therefore
If you were to redesign jobs at CarMax to improve employee motivation, how would you do so? When it comes down to CarMax they provide many incentives that motivate the employees to increase their performance within the company such as their flat fixed commission received for their sale consultants. If we were to redesign the jobs at CarMax to improve employee motivation we would keep the flat fixed commission but gradually increase it each year. We would also like to increase job enrichment with
Executive summary In this formal report I will be comparing two big companies, Staples and Circuit City. Both come sold computer accessories and Electronics such as TVs, Computer, printers and ink etc. This report will give in depth details of why Circuit City went out of business and Staples is still in business. This formal report will show the history of Staples and Circuit City. Why did Staples is still in business as of today and why is Circuit City out of business? What were the business model
Executive Summary During the development from 1949 to 2000, Circuit City achieved aggressive expansion and became the leading company in the industry of electronics retailer. However, fiscal 2000 was an important transition year for the company. The more and more intense competition and the decreasing profitability for years made the company face with unprecedented challenges. These problems were caused by the following reasons: 1. Overexpansion. The company expanded its business and took more and
Today, no one seems to doubt that the consumer electronics market in U.S is dominated by BestBuy which controls approximately 49% market shares (Palmer, 2016). However, 20 years ago, there was the other giant company, the Circuit City, in this market occupying a large market share. By 2000, Circuit City was comparatively successful with more than 60,000 employees at 616 locations across the United States (Romero, 2013). But Circuit City gradually lost its competitive advantage and finally went bankruptcy
When you hear the term “used car”, what is the first thing that comes to mind? Some may think of an old rusty Cadillac that belongs in a junkyard. Others may think of that nice Camaro at the used car dealership for sale. Over the years, used car sales have skyrocketed. In 2012, over 40.5 million used cars were purchased in the United States (Atiyeh, 2013). Used cars are in high demand in today’s economy because of the lower prices, slightly higher gas mileage, and that they can be more trustworthy
2. How to Buy a Used Car? Pankaj Sherchan, Student – Southeastern Louisiana University Buying a new car can be misleading sometimes. Some of them are expensive while other do not meet the expectations. Thus, buying a used car can be a good option. It not only saves the buyer from unaffordable loans, especially for the college students, but also helps in lowering the monthly insurance payments. Finding a good deal with so many choices can be challenging task. However, if you plan and research
2009). This turned out to be “stuck in the middle” scenario for Circuit City. They neglected to upgrade and protect their core competencies which the competitors took advantage of. The company’s decision to pursue noncore activities like creating CarMax, a retail chain for used cars and introduction of a proprietary DivX player, which was a huge flop and the attempted merger with Blockbuster lead to further erosion of the company’s competitive advantage (Rothaermel
Exchange (NYSE: AZO) and earned recognition from the Fortune 500 list (AutoZone, Competition is stiff in the Specialty Retail Industry and AutoZone is not short of reputable and aggressive competition. Notably, their primary competitors are AutoNation, CarMax, Genuine Parts Company, and O’Reilly Automotive (NASDAQ, 2016). Indeed, the sale of automotive parts, accessories, and maintenance items is highly competitive in the areas of name recognition, product availability, customer service, store location
My dad had just started letting me go on long motorcycle rides with him on his Victory. The bike was the shiniest blue I had ever seen, and he rode it to work every day. There used to be a straight-a-way where the roundabout by CarMax is now, and every night when he came home I could hear him roaring down that road. I imagined it as his way of telling us he was happy to be home before he even got to us. On the weekends, when I was lucky enough, he would wake me up super early and
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Are you planning on buying your first car? You are in for an adventure, buying a car for the first time can be a time consuming, yet an exhilarating process. In fact, owning a car gives you enormous freedom and responsibility. A car also comes with significant expenses like maintenance, repair, fuel, and insurance. So, you will do well to plan before you set out. Many people make the mistake of buying their first car without proper preparations and research. As a result, they find that they bought