Macy's Essay
Case study: Macy’s | January 17
2013
| Instructor: Anish Bania | Kevin Oh |
1. Macy’s and other department stores are faced with imminent problems where sales are declining each year. Due to high competition and many substitutions in the market, company must always analyze, investigate, and plan for decision making. Creating situational analysis is a great way to analyze both the internal and external environments in order to understand the company’s capabilities, business environment, and customers. In Macy’s case, some of the external factors are competition and economy. Since competitors such as discount stores and specialty stores are attracting many customers, Macy’s need to find a solution to differentiate themselves …show more content…
Overall, Macy’s consolidation and repositioning strategy have many advantages since the company converted 15 department stores to Macy’s brand; Remodelling stores promote a pleasant shopping experience to customers, displaying fashionable clothing to attract trend-followers, and developing private brands to increase profits. As mentioned above, the first strength to this change is the decision to consolidate. By using the same brand name, this will reduce advertising costs, customers will easily recognize the brand, and since all stores carry same products they may have bargaining power over suppliers. Next advantage is locations. Since Macy’s now have approximately 810 stores in 50 states, customers can visit any Macy’s stores without inconvenience. Moreover, because all stores carry same products, services, and designs, buyers can visit any stores to buy what they need. Last strength is Macy’s focus on affordable fashion. People nowadays value fashion so much that they simply won’t purchase clothing that is boring and bland. By recognizing these factors, Macy’s are working with top designers to attract and show buyers their brand is fashionable and also affordable. Despite of these advantages, Macy’s also have weakness to worry about. Customers are complaining that the price of merchandise increased and they would shop elsewhere. Macy’s would reduce these complaints by offering coupons or to perform customer relationship program to recognise those who are loyal to the store and give special incentives or
2013
| Instructor: Anish Bania | Kevin Oh |
1. Macy’s and other department stores are faced with imminent problems where sales are declining each year. Due to high competition and many substitutions in the market, company must always analyze, investigate, and plan for decision making. Creating situational analysis is a great way to analyze both the internal and external environments in order to understand the company’s capabilities, business environment, and customers. In Macy’s case, some of the external factors are competition and economy. Since competitors such as discount stores and specialty stores are attracting many customers, Macy’s need to find a solution to differentiate themselves …show more content…
Overall, Macy’s consolidation and repositioning strategy have many advantages since the company converted 15 department stores to Macy’s brand; Remodelling stores promote a pleasant shopping experience to customers, displaying fashionable clothing to attract trend-followers, and developing private brands to increase profits. As mentioned above, the first strength to this change is the decision to consolidate. By using the same brand name, this will reduce advertising costs, customers will easily recognize the brand, and since all stores carry same products they may have bargaining power over suppliers. Next advantage is locations. Since Macy’s now have approximately 810 stores in 50 states, customers can visit any Macy’s stores without inconvenience. Moreover, because all stores carry same products, services, and designs, buyers can visit any stores to buy what they need. Last strength is Macy’s focus on affordable fashion. People nowadays value fashion so much that they simply won’t purchase clothing that is boring and bland. By recognizing these factors, Macy’s are working with top designers to attract and show buyers their brand is fashionable and also affordable. Despite of these advantages, Macy’s also have weakness to worry about. Customers are complaining that the price of merchandise increased and they would shop elsewhere. Macy’s would reduce these complaints by offering coupons or to perform customer relationship program to recognise those who are loyal to the store and give special incentives or