Carmax SWOT Analysis

Published in Lifestyle and Retail category by MBA Skool Team

Here is a detailed SWOT analysis of Carmax covering strengths, weaknesses, opportunities and threats.

Carmax Strengths

  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

Above are the strengths in the SWOT Analysis of Carmax. The strengths of Carmax looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Carmax Weaknesses

  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

These were the weaknesses in the Carmax SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Carmax Opportunities

  1. Ever increasing demand for second hand cars
  2. Export opportunity to developing country
  3. Participation in various auto expos and displaying auto design

Above we covered the opportunities in Carmax SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Carmax Threats

  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

The threats in the SWOT Analysis of Carmax are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Read Similar SWOT analysis

Hence this concludes the Carmax SWOT analysis.

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About Carmax

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Carmax Overview
Parent Company

Circuit city

Category

New and used-car retailer

Sector

Lifestyle and Retail

Tagline/ Slogan

The way car buying should be.

USP

Offer one roof solution for buying of new and used cars

Carmax STP
Segmentation

People of United States

Target Market

People looking for buying of new/used cars

Positioning

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.

Browse marketing analysis of more brands and companies similar to Carmax. This section covers SWOT Analysis along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors.

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