Carmax SWOT Analysis, Competitors & USP

Posted in Lifestyle and Retail, Total Reads: 5819

SWOT Analysis of Carmax with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing 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 :

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


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


1. Ever increasing demand for second hand cars

2. Export opportunity to developing country

3. Participation in various auto expos and displaying auto design


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 3 main 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.


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