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• Case | HBS Case Collection | 2013 (Revised from original 2013 version)

  CarMax: Disrupting the Used Car Market

  John R. Wells and Galen Danskin

  In 2012, CarMax was the leading retailer of second hand cars in the United States and a fast-growing competitor in the used car auction market. After their founding in 1993 by Circuit City's management, CarMax had grown rapidly. They had been profitable since 2000 and independent from their parent company since 2002. While Circuit City went bankrupt in 2009 under pressure from Best Buy and challenging economic conditions, CarMax flourished and expanded through the economic crisis. Fiscal 2012 revenue reached $10.5 billion and net income, a record $413 million. However, CarMax still only accounted for less than 3% of the fragmented second hand car market. Additionally, they were keen to avoid the fate of their parent and to stay ahead of copy-cat competitors. What should CarMax do to grow its market position and continue its success in used car retailing and auctioning?

  Citation:

  Wells, John R., and Galen Danskin. "CarMax: Disrupting the Used Car Market." Harvard Business School Case 713-467, March 2013. (Revised from original January 2013 version.)

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• Case | HBS Case Collection | 2012 (Revised from original 2012 version)

  The Fall of Circuit City Stores, Inc.

  John R. Wells and Galen Danskin

  On January 16, 2009, after a dismal holiday season, Circuit City was forced into liquidation. Unable to meet creditors' demands, and with no acquirer in sight, Circuit City began the process of liquidating its remaining 567 U.S. stores. Circuit City had been the leader in consumer electronics retailing for nearly twenty years when its profits peaked in 2000. What led to its dramatic decline? Why did three CEOs fail to turn it around? Were these problems present before the 2000 peak?

  Keywords: Strategic Planning; Competitive Strategy; Leadership; Consumer Products Industry; Electronics Industry; North America;

  Citation:

  Wells, John R., and Galen Danskin. "The Fall of Circuit City Stores, Inc." Harvard Business School Case 713-402, November 2012. (Revised from original September 2012 version.)

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• Case | HBS Case Collection | 2012

  J Sainsbury Plc, Road to Recovery

  John R. Wells and Galen Danskin

  In 2012, J Sainsbury Plc (Sainsbury's), the number three supermarket chain in the UK with £22.3 billion in sales, appeared to have put the troubles of the past behind it. For over 70 years, Sainsbury's had been the UK's largest grocer, but Tesco had overtaken it in 1995 and then Asda knocked it into third position in 2003. When Justin King took over as CEO in 2004, UK sales were flat and UK profits languished at 40% below their 1999 levels. He cut prices and restored sales growth, and from 2007 onwards, Sainsbury's had outperformed Tesco on same-store sales growth. What did King need to do to sustain Sainsbury's revival?

  Keywords: United Kingdom; retailing; food; Tesco; Sainsbury; Strategy; Competitive Strategy; Global Strategy; Retail Industry; United Kingdom;

  Citation:

  Wells, John R., and Galen Danskin. "J Sainsbury Plc, Road to Recovery." Harvard Business School Case 713-453, October 2012.

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