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CarMax: Driving What's Possible
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Reference: DARDEN-S-0317-E
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Number of pages: 14
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Publication Date: Aug 26, 2019
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Source: Darden University of Virginia (USA)
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Type of Document: Case
Description
CarMax, based in Richmond, Virginia, is the largest retailer of used cars in the United States. Over the past several years leading up to 2019, CarMax has undergone a major digital transformation, integrating agile, lean, and user experience (UX) design best practices to become a customer-centric, product-driven organization.
In this case, CarMax is facing new competitors (e.g., digital native players Carvana and CarsDirect), changing consumer shopping behavior, and technological advancements in electric cars, autonomous vehicles, and ride-sharing platforms. In order to maintain its dominant position in the used-car marketplace, CarMax must continue to evolve from a traditional brick-and-mortar model marked by legacy corporate practices (such as annual roadmaps and budget cycles) to a product-focused, omnichannel experience that delivers significant value to its customers.