CarMax Inc. - 2005
Case Questions
1. Market
A. Clearly and specifically define the market for this business as it now exists in one clear and specific sentence. This must be a complete definition (customer, product/service, level in chain, and geographic area at a minimum).
B. Provide full support as to why this is the best definition. Address each part of the definition separately.
2. Life cycle
A. Fully analyze from the standpoint of Life Cycle theory. Clearly define and support the life cycle stage for the market you defined in #1. You must provide clear and convincing evidence for your position.
B. What does this tool recommend for this company? Explain in both Hofer terms and David's strategies
3. Current Strategy
Analyze and discuss fully what overall strategy or set of strategies the company is currently pursuing. Be specific, not generic. You must support your position with facts. Be sure to differentiate between business strategies and functional strategies.
4. Rumelt
Relate each of Rumelt's four criteria to your answer in #3. Answer the following questions for EACH criteria. You must be complete in your answers. Arrange your answer as: 1. Consistency, then A through D, 2., then A through D, 3. etc.
A. Does the strategy meet the criteria?
B. To what extent?
C. Does it fall short? How?
D. Could the strategy have been modified to better meet these criteria? How? Support.
5. Recommendation:
A. What one major strategy should they pursue now? You must be specific (not generic) and support fully. Support for your choice being the most appropriate choice is critical. Use the following outline to answer this question. You must address all detail items within 3 & 4 fully.
1. State your recommended strategy.
2. Explain your strategy.
3. Support why your strategy is appropriate.
4. Support why your strategy is the best strategy.
B. Clearly relate and justify your proposed strategy to each tool above.
1. Relate to life cycle in #2B.
2. Relate to Rumelt in #4 for each of the four criteria.
Note: Different years and periods in various exhibits.
See FAQ for answers to frequently asked questions about this case.
- Q1 – 12/24/2007 -