What constraints does CarMax face as it seeks to continue to grow, and how might it overcome these constraints? Are there other markets in which CarMax's strategy might work well?

What constraints does CarMax face as it seeks to continue to grow, and how might it overcome these constraints? Are there other markets in which CarMax’s strategy might work well?

Value stream

1.Why is car retailing a low–profit business? If you were to make a choice, would you rather be a new–car
franchisee or a used–car specialist?

2.How does CarMax’s strategy create value? How does it affect consumers’ willingness to pay? How
does it affect costs?
3.What constraints does CarMax face as it seeks to continue to grow, and how might it overcome these
constraints? Are there other markets in which CarMax’s strategy might work well?

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What constraints does CarMax face as it seeks to continue to grow, and how might it overcome these constraints? Are there other markets in which CarMax’s strategy might work well?

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