The Repositioning of Macy's Department Store: A Case Study

Pages: 4 (669 words) Published: May 27, 2014
Macy’s

[MACY’S DEPARTMENT
STORE REPOSITIONING]

1

COMPLETE THE SITUATIONAL ANALYSIS OF THE TRADITIONAL DEPARTMENT STORE INDUSTRY OF MACY’S AS OF 2005
Sector analysis
Potential
competitors

Strength of the threat

Category Specialist Stores (fashion:
ZARA, H&M, The GAP, etc; household
goods/housewares: Pier Import, Bath
and Beyond)

Very high:


From 1992 to 2006 the
weight of dept store on total
market decreased from
~45% to ~20% (as per
Exhibit 1).



Low entrance barriers.

Discounters (Wal-Mart, Target, etc)
Online stores

Rivalry among
established
company

High-end General: Nordstrom, Lord
and Taylor, etc

High:


High rivalry



Very fragmented and mature
sector

Same category: Dillard’s
Lower Middle: JCPenny, Sears, etc

Bargaining power
of buyers

Several customers with demographic
segmentation

High:


Low customer loyalty



Customers looks for new
shopping experience

Bargaining power
of suppliers

N/A

Low - N/A

Threats of
potential
substitutes

Category Specialist Stores (ZARA,
H&M, The GAP, etc)

Very high:


Discounters (Wal-Mart, Target, etc)
Online stores

Entrance of different
competitors with different
business models.

2

WHICH FACTORS IN THE EXTERNAL ENVIRONMENT COULD AFFECT THE
SUCCESS OF MACY’S NEW STRATEGY – WHICH INTERNAL FACTORS COULD AFFECT THE SUCCESS AND REPOSITIONING STRATEGY: WHAT ARE ITS
STRENGHTS AND WEAKNESSES
Strength
• Reduction of SG&A costs (consolidation of
brand, advertising cost reduction,
unification of management structure)
• Reduction of CoGS (optimization of
purchasing)
• Positive Brand Image (and brands already
known and well established)
• Prime Location
• Strong management (already experienced
in consolidation activities)
Opportunities
• The department stores try to become more
and more specialized for differencing the
target
• New loyalty possibilities (Everyday values)
• Customers are in...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Case Study of Macy's, Inc.
  • A Case Study: "Nordstroms" a Upscale Department Store Essay
  • Case Study Macy's Essay
  • Case Study Essay
  • case study Essay
  • case study Essay
  • The Family Store Case Study Essay
  • Department Stores Essay

Become a StudyMode Member

Sign Up - It's Free