Carmax SWOT Analysis, Competitors & USP

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 table below lists the Carmax SWOT (Strengths, Weaknesses, Opportunities, Threats), top Carmax competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

Carmax SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & 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

SWOT Analysis of Carmax
Carmax Strengths

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

Carmax Weaknesses

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

Carmax Opportunities

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

Carmax 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

Carmax Competition
Carmax Competitors

Below are the top 3 competitors of Carmax:

1. AutoNation
2. EBay
3. Edmunds


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.

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. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.

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