Department Stores

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Case one

Macy’s Department Store Repositioning

Jingjing Li
BUS 2275 Business Strategy and Simulation–Section 050
Instructor: Anish Bania
Due Date: Jan 16, 2013

Table of Contents
Executive Summary2
Statement of the problem/opportunity/and objectives2
Analysis of the situation2
External and internal2
Porter’s five –forces model3
1.The threat of new entrants.3
2.The bargaining power of buyers.3
3.The bargaining power of suppliers.4
4.The threat of substitute products and services.4
5.The intensity of the rivalry among competitors in an industry4
Unique and a sustainable competitive advantage4
Identification and evaluation of alternatives5
Macy’s Future5

Executive Summary
As the global recession happened, the traditional department stores were experiencing consistently declining sales and market share. Also, the traditional department stores industry is between mature and decline stage of life cycle. Macy’s changed parts of their strategy and consolidation that focuses on localizing management, strengthening supplier relationships and providing products and customer service based on local consumer preferences. However, the consolidation was not with problems. With dealing these problems Macy’s changed parts of the strategy as following: * Continuing to adjust its portfolio of store.

* Focusing on Fashion.
* Continuing to develop and debut Macy’s private labels in bedding, outwears etc. * Increasing national advertising with emphasis on fashion and service. Statement of the problem/opportunity/and objectives

The tradition department stores were one of the areas hit by the recession. While some companies dropped previously supported causes and programs, Macy's got more profit and market share through repositioning strategy and consolidation, even with the rough economic times. Analysis of the situation

External and internal
Macy’s is a kind of traditional department store, and...
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