SWOT Analysis of Carmax
Carmax was the first successful company to sell used cars effectively and efficiently. Other companies tried to do what Carmax does and failed. Carmax is a retail store that offers thousands of used cars at a low price. The customer service is great and the salesmen don’t haggle. Carmax has a 125 point system that each car goes through to ensure superior quality and there is a 30 day warranty on every car. You even have a five day money back guarantee. Carmax is so successful because their business is based on integrity in all the aspects of the business. Carmax is trying to change the way car buying should be. They have friendly salesmen that are trained well and able to answer questions easily. There are vast arrangements of cars on the lot that are in every price range. Carmax has payment plans set up so anyone has the ability to buy a car. Even if you don’t buy a car at Carmax you have the ability to sell your car to them, no matter the damage. Carmax has a plethora of strengths. When speaking to Eric Price, the operations manager of Carmax, he gave us examples of how strong Carmax really is. At the Greenville facility, the cars are bought, reconditioned, and put through the 125 point system to ensure perfect quality of cars. Eric told us that they adapt to the changing economy very well. Carmax buys cars on a week to week basis so if cars aren’t selling then they won’t buy as many, but if they are they can buy more. Carmax can change with the market. For example, the last time gas was up to four dollars a gallon people were selling their SUV’s like crazy. Well, Carmax took advantage of the situation, bought SUV’s for dirt cheap, and sold them when gas prices went back down and made a huge profit. Carmax also hires independent companies to come in and assess the work they are doing and help make changes. Another strength Carmax has would be their wholesale lot. When a customer sells them a car that cannot...
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