Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 12.12.2007
Length: 4 pages
Data source: Field research
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Abstract
This is the second of a two-case series (IMD-3-1867 and IMD-3-1868). By focusing on continual improvement of its core capabilities, CarMax successfully fought off Wayne Huizenga and began almost a decade of explosive growth. They are now worth significantly more than their parent, Circuit City. They are a particularly good example of a company that gets tremendous advantage from its IT (information technology) capabilities. This case can be used as an example of business model innovation, as an example of a company leveraging its distinctive capabilities in new markets, and as an example of strategic use of IT.
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Abstract
This is the second of a two-case series (IMD-3-1867 and IMD-3-1868). By focusing on continual improvement of its core capabilities, CarMax successfully fought off Wayne Huizenga and began almost a decade of explosive growth. They are now worth significantly more than their parent, Circuit City. They are a particularly good example of a company that gets tremendous advantage from its IT (information technology) capabilities. This case can be used as an example of business model innovation, as an example of a company leveraging its distinctive capabilities in new markets, and as an example of strategic use of IT.