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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

"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.

When a customer arrives to sell his or her car, a CarMax associate armed with a mobile device can evaluate the vehicle in real-time without ever leaving the customer or the vehicle. The associate has access to all the information needed to provide an accurate appraisal via a mobile app. This creates a positive initial experience both for the customer and the associate. CarMax associates use their mobile devices and the same app to appraise vehicles at off-site auto auctions. This enables them to buy the best cars at the best prices so that CarMax can make them available to its customers.

CarMax customers interested in getting an appraisal value for their vehicle can also submit their vehicle information online without having to come to a store.

CarMax plans to add an app to support a loyalty program for car owners. This will help them maintain and replace auto parts and obtain roadside assistance. There will also be a wallet-like feature where customers can store their vehicle ID number and insurance information.

CarMax has a strong program for onboarding information system new hires. Once new software developers arrive at CarMax, they attend Information Technology Academy. This academy is an eight-week program designed to jump-start their CarMax career. Here they learn about the primary technologies and tools as well as the software development process used at CarMax, thus laying a strong foundation for success in their new role. They also visit CarMax stores to observe first hand, different business processes and learn how CarMax information systems support employees and customers alike. This experience helps them to appreciate how their contributions will have a direct and significant impact on the organizations ongoing success.

At the end of the eight-week program, each graduate is assigned to a product team matching their skill set, interests, and aptitude. CarMax fuels the innovation process by creating multi-functional product teams consisting of up to 10 people including a product manager, lead software developer, and people from quality assurance and user design. The team is challenged to go after business objectives and key results such as how many leads they generate or how many prospect-to-customer conversions they deliver. Its up to them to determine the best solution for each customer to meet their goals. Every two weeks, the product teams conduct open houses that anyone can attend. A team member presents what the product team has accomplished against its business objectives. CarMax senior managers, including an occasional board of directors member, regularly attend these open houses."

Read the extract below and answer this question

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.

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

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?

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