Study Sheet Carmax Analysis

CARMAX- Relationship with Chapter 5-10 1. Resource and Capabilities a. RESOURCES i. Logistics ii. Inventory Management iii. Management Experience b. CAPABILITIES iv. Nationwide Standardization v. Low Costs vi. High-End Buyer Experience vii. Strategic Management viii. Reputable management/reputable company c. USE VRINE CRITERIA TO ANALYZE THEIR RESOURCE AND CAPABILTIIES d. USE TABLE OF IMPORTANCE AND RELATIVE STRENGTH TO PLACE THEM WITHIN THE INDUSTRY 2. Competitive Advantage e. Their characteristics of innovatory strategy ix. They were new entrants to industry using same values x. They reconcile conflicting performance goalsThey combine low cost, high quality(because of checks and 125 points system), etc. xi. They reconfigured value chainSell used cars differently than any other past used car dealer f. What are their competitive advantages??? xii. Ability to provide high degree of customer satisfaction with the car buying experience xiii. Competitively low prices xiv. Breadth of selection of the most popular makes and models xv. Quality of vehicles xvi. Exclusive information systems xvii. Locations of retail stores 3. Cost Advantage g. Drivers xviii. Economies of scale xix. Economies of learning xx. Production technique xxi. Product design xxii. Input costs xxiii. Capacity utilization xxiv. Residual(other) efficiency 1. All of these are described in the powerpoint, study notes and lecture notes h. Analyzing Costs(SHOW ON SLIDE 15 OF PPT#9) xxv. Determine value chain(done below) xxvi. Establish their relative importance in total cost of product xxvii. Compare costs by activity xxviii. Identify cost drivers