Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of Carmax analyses the brand by 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. Carmax is one of the leading brands in the lifestyle and retail sector.
The article below lists the Carmax SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Carmax SWOT Analysis:
For Carmax, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Carmax looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the 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
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. 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
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. 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 for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. 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
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Carmax:
Offer one roof solution for buying of new and used cars
People of United States
People looking for buying of new/used cars
The auto superstore
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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