Close Cookie Notice

Welcome to the MIT CISR website!

This site uses cookies. Review our Privacy Statement.

Working Paper hero
Working Paper: Case Study

Redesigning CarMax to Deliver an Omni-Channel Customer Experience

CarMax has deployed empowered teams to reshape the customer experience.
By Jeanne W. Ross, Cynthia M. Beath, and R. Ryan Nelson
CASE STUDY

An in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education)

Abstract

CarMax became the US’s leading used car dealer by providing a great customer experience in an industry known for bad experiences. Around 2015 the company embarked on a digital transformation that evolved into a vision for an omni-channel business model. This case reviews the company’s transformation journey, highlighting its adoption of empowered teams and two-in-a-box management approaches. The case observes how the company’s transformation helped it respond to the COVID-19 crisis and positioned CarMax for sustained growth.

Access More Research!

Any registered, logged-in user of the website can read many MIT CISR Working Papers in the webpage from 90 days after publication, plus download a PDF of the publication. Members of MIT CISR Patron and Sponsor organizations get access to additional content.

About the Authors

Profile picture for user jross@mit.edu

Jeanne W. Ross, Principal Research Scientist, MIT Sloan Center for Information Systems Research (CISR)

Profile picture for user cynthia.beath@mccombs.utexas.edu

Cynthia M. Beath, Professor Emeritus, University of Texas, Austin

Profile picture for user rnelson@virginia.edu

R. Ryan Nelson, Professor of Commerce, McIntire School of Commerce, University of Virginia

MIT SLOAN CENTER FOR INFORMATION SYSTEMS RESEARCH 

Founded in 1974 and grounded in the MIT tradition of rigorous field-based research, MIT CISR helps executives meet the challenge of leading dynamic, global, and information-intensive organizations. Through research, teaching, and events, the center stimulates interaction among scholars, students, and practitioners. More than ninety firms sponsor our work and participate in our consortium. 

MIT CISR Patrons
AlixPartners
Avanade
Axway, Inc.
Cognizant
Microsoft Corporation
Pegasystems Inc.
PricewaterhouseCoopers
Standard Bank Group (South Africa)
The Ogilvy Group
MIT CISR Sponsors
Aetna, a CVS Health business
Air Canada
Allstate Insurance Company
ANZ Banking Group (Australia)
Australian Taxation Office
AustralianSuper
Banco Azteca (Mexico)
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of Queensland (Australia)
Barclays (UK)
Bayer
BNP Paribas (France)
Bristol-Myers Squibb
Cabot Corporation
CarMax
Caterpillar, Inc.
CEMEX (Mexico)
Charles River Laboratories, Inc.
CIBC (Canada)
Cochlear Limited (Australia)
Commonwealth Superannuation Corp. (Australia)
Credit Suisse (Switzerland)
Cuscal Limited (Australia)
DBS Bank Ltd. (Singapore)
Doosan Corporation (Korea)
ExxonMobil Global Services Company
Ferrovial Corporacion, S.A. (Spain)
Fidelity Investments
Fomento Economico Mexicano, S.A.B., de C.V.
Fortum (Finland)
General Mills, Inc.
General Motors Corporation
Henkel AG & Co. (Germany)
Hitachi, Ltd. (Japan)
HSBC Technology & Services (USA) Inc.
Insurance Australia Group
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Koç Holding (Turkey)
Markel Corporation
National Australia Bank Ltd.
Nomura Holdings, Inc. (Japan)
Nomura Research Institute, Ltd. Systems Consulting Division (Japan)
OCP North America Inc.
OECD
Pacific Life Insurance Company
PepsiCo Inc.
Pioneer Natural Resources USA Inc.
Posten Norge AS (Norway)
Principal Financial Group
Procter & Gamble
QBE
Raytheon Technologies
Reserve Bank of Australia
Royal Philips (Netherlands)
Santander UK/Grupo Santander
SC Global Tubular Solutions
Scentre Group Limited (Australia)
Schneider Electric Industries SAS (France)
State Street Corp.
Stockland (Australia)
Suncorp Group (Australia)
Teck Resources Limited (Canada)
Tetra Pak (Sweden)
Trinity Health
Truist Financial Corporation
UniSuper Management Pty Ltd (Australia)
USAA
Webster Bank, N.A.
Westpac Banking Corporation (Australia)
WestRock Company
Zoetis Services LLC
Find Us
Center for Information Systems Research
Massachusetts Institute of Technology
Sloan School of Management
245 First Street, E94-15th Floor
Cambridge, MA 02142
 
617-253-2348