Carmax Case Study Submitted by Ernest Hopkins Prepared for Professor Patty Murphy MNGT 5650 / Management & Strategy Fall 2 2014 November 5‚ 2014 CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data‚ ideas‚ or words‚ either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Signature Ernest Hopkins November 5‚ 2014 CarMax History Historically
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increased nearly $ 2000 each year. The threat of new Entrant The threat of entry is low in this industry. There is an economy of scale since the major player in this industry‚ CarMax‚ superstore sold 400 vehicles per month while the other car dealers sold 45 used car per month. This large sales volume by CarMax create economies of scale since the total cost will be divided over large number of cars which will reduce the cost and make it difficult to any new firm to enter the market. One of
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Carmex case study assignment: 1. What are the advantages and disadvantages for the Carmex marketing team in collecting data to narrow the flavor choices from three to two using (a) an online survey of a cross-section of Internet households or (b) an online survey of Carmex Facebook likers. Answer: a. Even though the case study is about using Facebook for marketing research‚ this particular question is about general online survey. The advantages of online surveys are: • Instant
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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
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SWOT Analysis of Carmax Ashley Meister Tyson Ray Carmax was the first successful company to sell used cars effectively and efficiently. Other companies tried to do what Carmax does and failed. Carmax is a retail store that offers thousands of used cars at a low price. The customer service is great and the salesmen don’t haggle. Carmax has a 125 point system that each car goes through to ensure superior quality and there is a 30 day warranty on every car. You even have a five day money back guarantee
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1. How can a company like CarMax‚ which faces significant challenges during a recession‚ use the FAME method to communicate with its employees? For the most part CarMax has already used the FAME method while communicating with its employees about what was going on. The CEO communicated with shareholders and employees to get the point across. He laid out the plan to the employees of how they were going to face the tough time. He made it clear how each employee was going to fit into the equation
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When it comes to buying‚ trading in‚ and selling a vehicle‚ one of the well known places that come to mind is CarMax. Not only do they buy‚ trade‚ and sell vehicles‚ but they value the customers and service that they provide to their customers. One of the values that CarMax is known for is their great customer service‚ their trust worthiness‚ and their ethical practices. “CarMax is founded on the fundamental principle of integrity‚ reflected in the way we serve our customers‚ treat each other‚ and
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what they are talking about chances are someone may try and take advantage of you. Car buying should be fun‚ because you get to test drive quite a few cars to see which one you would like more than the other. When I went to buy my car I went to CarMax over on Fountainhead because that was where I bought my Toyota Camry and you get a variety of cars not just one type. The salesman I had was awesome‚ I wasn’t sure at the time which type of car I wanted‚ I just knew I wanted something that would
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www.hbr.org Much of the time‚ executives use analogies to make strategic choices. The best strategists know both the power and peril of such comparisons. How Strategists Really Think Tapping the Power of Analogy by Giovanni Gavetti and Jan W. Rivkin Reprint R0504C Much of the time‚ executives use analogies to make strategic choices. The best strategists know both the power and peril of such comparisons. How Strategists Really Think Tapping the Power of Analogy by Giovanni Gavetti
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former CarMax CEO). • This is because there is very little scope for differentiation on the sell side; lots of scope for value creation‚ differentiation and value extraction on the buy side: • • Today‚ individual sellers of used electronics have few alternatives. But that may change... What about the sell side? • Much more price transparency and competition on the sell side: just another car dealer or just another power seller on eBay. Note similarity of Gazelle to CarMax 1
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