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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.

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About the Authors

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

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

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

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