Question

1. Executive Summary and Existing mission, objectives, and strategies of CarMax

Answer 1

Executive Summary CarMax is the largest used car retailer in the United States. CarMax was founded in the year 1993 as a subsidiary of electronics retailer Circuit city; the company marks itself from competitors in the used car space with its wide selection of high quality vehicles and a customer-oriented sales process that includes “no-haggle” pricing.

At present CarMax, the nation's largest retailer of used vehicles and a Fortune 500 company. The Company had 173 locations by March 2017

CarMax has had its own publicly traded stock since 1997. CarMax has been a standalone company since October 2002. Although CarMax specializes in late model used vehicles, the company also sells older used vehicles at retail; lower-quality used vehicles at wholesale.

CarMax also provides a variety of complementary products and services, including

1. CarMax Auto Finance operation,
2. Purchase of vehicles from consumers, and
3. Vehicle repairs.

Having opened its first store in 1993, CarMax has grown rapidly. Since fiscal 2007, the company has grown revenues by roughly 34%, and net income has risen by 114% in the same period. In fiscal 2012, net earnings rose 10% to $413.8 million. CarMax continues to grow rapidly, as the company had stores in markets covering only about 50% of the US population in February 2012. CarMax’s rapid expansion and innovative business model have been the key elements of the company’s success. The company was the first to pioneer “no-haggle” prices in a used car sales environment, and it was among the earliest to rely heavily on Internet traffic to its website for selling cars. In recent years, CarMax has continued this tradition of innovation with its mobile application, which is essentially its website content optimized for the smart phone platform.

CarMax operate in two reportable segments: CarMax Sales Operations and CarMax Auto Finance (“CAF”). Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax.

CarMax Mission is

"To provide our customers great quality cars at great prices with exceptional customer service."

CarMax objectives

Delivering Value to share holders, Productivity, Customer Service, Customer focus, Provide an exceptional experience to its customers, Promote leadership, education and wellness.