The CarMax Car Dealer’s Organizational Analysis

Case Summary

CarMax is a successful and large US used car dealer with a wide variety of services and goods available for its clients. The company has managed to adapt to the changes in the market environment, adopting new features and methods for interacting with its client base. Their practices and approaches continuously set the trend for car sellers around the globe, being able to offer what no other company could. The revenue of the business in 2017 totaled more than $15 billion, making CarMax extremely successful. The business has managed to integrate modern technology into its business model with a variety of approaches. Firstly, they have built an integrated online website that works on different devices and allows the customers to quickly find what they seek.

The design and available options boost the sales of the company while also improving the customer experience. Additionally, CarMax has also launched a loan app, allowing their clients to get approved prematurely and increase service speeds. The addition of this app has given the company the ability to streamline the sales process further and potentially make more people want to buy their cars.

The last addition to the CarMax digital presence is a mobile device-oriented informational platform offered to employees, one that allows them to evaluate the condition of submitted cars in real-time. The process is made easy and clear for both participating sides of the process, and the inclusion of a mobile application is used chiefly to improve customer experiences. Overall, CarMax has found a number of successful ways of integrating modern approaches into its practices and stayed ahead of its competition because of it.

The new auto appraisal system

In my evaluation, the new appraisal system employed by CarMax operates at an enterprise level of influence. The enterprise sphere of influence can be primarily classified as the one that aids an organization in working with its environment and the client base, offering services for a large variety of people (Stair & Reynolds, 2021). These kinds of influence systems work in favor of all sides of the interaction and offer ways to improve the smoothness or success of the business. The use of computerized systems, aides, or other ways of improving the process of providing goods or services would be considered an enterprise IS.

In the case of CarMax, that meant giving their employees an ability to evaluate and assess clients’ cars on the go, without having to go through the more prolonged process to do so. Using a phone-based application, the company places the convenience of both their employees and their clients as the top priority. This move has had an overly positive impact on the organization as a whole and the revenues the company has. The portability and general convenience of the practice guarantee its success in the future operation of the business.

The CarMax IS organization perception

I think that CarMax’s approach to IS is generally perceived to be positive, as they have been described to significantly improve the speed and convenience of operation. In the last decade, many organizations have found themselves adopting the use of modern technology as the tool to enhance user experience or improve the work of their employees. The online sphere and mobile devices, in particular, have been extremely formative to the creation of the business sphere that is known today.

The application and use of IS at CarMax is a positive change going forward, one that can allow the company to stay relevant and successful longer. Over the past few years, the company has been transformed with the introduction and use of digital technology, which is mostly seen as a way to keep increasing potential profits and offering the customers a client-centric approach to business (“CarMax discusses strategy to drive revenue growth and Accelerate market share gains at its 2021 analyst day event,” 2021). The use and application of IS into the work structure, especially the ones that actively improve the work experience and convenience of both employees and their customers, is valued highly by the organization as a whole.

Skills for CarMax information systems new hires

I think that CarMax IS hires should be able to identify the main goals and aims of the company competently, as well as have the ability to successfully understand the essence of a customer-centric approach. Most of the quality improvements that have occurred in the company have been incurred by the desire to cater to the client base, namely, with the inclusion of more services that adapt to the needs of their users. Potential hires in IS must be able to access the future and emerging needs of the population and analyze market trends and possible future outcomes to design the best services and tools at CarMax’s disposal. The introduction of more digital services is the general direction the company is moving toward, and the people hired for the positions in IS must be able to support this initiative.


CarMax discusses strategy to drive revenue growth and Accelerate market share gains at its 2021 analyst day event. (2021). Carmax. Web.

Stair, R. M., & Reynolds, G. (2021). Principles of information systems. Cengage.

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