Carmax SWOT Analysis, Competitors & USP

Posted in Lifestyle and Retail, Total Reads: 6622

SWOT analysis of Carmax analyses the brand/company with its strengths, weaknesses, opportunities & threats. In Carmax SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Carmax to benchmark its business & performance as compared to the competitors and industry. Carmax is one of the leading brands in the lifestyle and retail sector. The table below also lists the top Carmax competitors and elaborates Carmax market segmentation, target group, positioning & Unique Selling Proposition (USP).

Carmax SWOT, Competitors, Marketing STP & Brand analysis Table
Carmax Brand Analysis
Parent Company

Circuit city


New and used-car retailer


Lifestyle and Retail

Tagline/ Slogan

The way car buying should be.


Offer one roof solution for buying of new and used cars

Carmax STP

People of United States

Target Group

People looking for buying of new/used cars


The auto superstore

Carmax SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Carmax. Strengths are:

1. Fortune 500 company
2. Company outlets are present in more than 110 locations and 650 retail stores across globe
3. Largest used-car retailer of United States
4. Company has manufacturer franchises with Ford, BMW and Volvo


Here are the weaknesses in the Carmax SWOT Analysis:

1. Inventory holding is large
2. Size of store is very large (approximately 59,000 square feet) which add in an operational cost.
3. World wise presence is very less


Following are the Opportunities in Carmax SWOT Analysis:

1. Ever increasing demand for second hand cars

2. Export opportunity to developing country

3. Participation in various auto expos and displaying auto design


The threats in the SWOT Analysis of Carmax are as mentioned:

1. Increase in crude oil prices may slowdown the growth of industry
2. Online consultancy is available for purchase of cars
3. Increasing raw material prices which increase the cost of car and in turn inventory holding

Carmax Competition

Below are the top 3 Carmax competitors:

1. AutoNation
2. EBay
3. Edmunds


The brandguide table above concludes the Carmax SWOT analysis along with its marketing and brand parameters.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Carmax. The BrandGuide section covers SWOT Analysis, USP, STP & Competition of more than 6000 brands from over 20 categories.

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