CarMax transformed the used car buying experience back in the 1990s with its no-haggle car prices that allows the customer to focus on other features (such as fuel economy, safety features, entertainment package, and so on) of the auto. Today, CarMax is the largest used car retailer in the United States with 173 used car stores and an aggressive growth plan that calls for the opening of more than a dozen new stores each year. During the fiscal year ended February 28, 2017, total revenue was $15.9 billion from the retail sale of just over 1 million used cars. CarMax continues to revolutionize car buying through consumer insights and customer-focused technology innovations that further distance CarMax from its competitors. 

Since 90 percent of used car buyers start their search online, CarMax built a Web site search platform similar to the highly effective “Amazon product description” design with which most consumers are familiar. CarMax has a centralized vehicle inventory system with information on over 50,000 CarMax Quality Certified vehicles. Its customers can search through this inventory using their mobile devices or portable or desktop computers. Consumers may even request that CarMax transfer the car of their choice to a store near them and, indeed, nearly 30 percent of the cars it sells are transferred for this reason.

CarMax launched a new online financing app to enable customers to get prequalified for a loan prior to visiting a store. This app helps move the customer further along the sales process and provides a faster in-store shopping experience. It has been received well by customers and contributes to increased leads, which CarMax believes generates incremental sales. 

Critical Thinking Questions

1. Would you classify the new auto appraisal system as operating in the personal, workgroup, enterprise, or interorganizational sphere of influence? Why? Identify key organizational complements CarMax needed to put in place to ensure that the new system would be successful. 

2. How do you think the CarMax IS organization is perceived by the rest of the organization? Support your opinion. 

3. Based on their use of multi-functional product teams, what personal traits, technical skills, and non-technical skills do you think CarMax looks for in its information systems new hires?