CarMax (kmx) Stock Research
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Generic strategies categorize companies by the scope and the strength of their business. CarMax does not have a definable strategy, therefore, it risks losing out to firms that concentrate on one particular competitive advantage. (read more).
Company Description: CarMax, Inc. is a holding company whose operations are conducted through subsidiaries, primarily CarMax, which buys, reconditions, and sells used vehicles for commercial market, 85% of which are 1 to 6 years old with fewer than 60,000 miles. In 2008, the Company retailed used vehicles at 89 superstores in 41 cities, selling 377,244 vehicles on lot and 222,406 wholesale vehicles in onsite auctions. Update
Discretionary Industry Analysis: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Industry Sub Sector: . CarMax is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks.
Market Challenges: Opportunities: Solutions:
CarMax's business strategy is to keep things simple. Clearly-defined strategies lower business risks by staying within their areas of expertise. CarMax's strategy is to continuously improve. This helps to fend against competitive threats and increases shareholder returns.
Strategy: Competitive Advantages:
Current Revenue Sources: Future Revenue Sources: