Macy’s Store Essay

1. Macys and other department terminals atomic number 18 approach with imminent problems where sales are declining each year. Due to full(prenominal) disceptation and many substitutions in the food market, company must always analyze, investigate, and jut out for decision making. Creating situational analysis is a great way to analyze two the internal and external environments in order to understand the companys capabilities, business environment, and customers. In Macys case, some of the external factors are competition and economy. Since competitors such as discount stores and specialty stores are draw ining many customers, Macys need to find a solution to differentiate themselves from others to deliver value. well-nigh of the examples derriere be lowering hurts to meet customer expectations, expand market by using online- shopping, or take a survey to gain which disgraces or items customers want in Macys department store.Economy is other crucial factor store has to consider. When the economy is healthy, stores tend to worry less, exclusively when the economy is in recession, customers leave behind spend less and find a sixpennyer substitute items to purchase. Although Macys positioned themselves as upper middle class, company can increase sales by in any case providing less expensive brands for customers to postulate from. As for internal factors, training employees, contract with excellent suppliers, and positive recognised brand will capacityen Macys. For example, experienced management can give instruction and lead employees to perform day-to-day operations and to be professional in what they do. spot awareness is also an important factor since customers judge product and service by its brand image.2. To this date, Macys is try to find a sustainable competitive profit in the retail industry. Clothing store such as ZARA and H&M direct a definite advantage since they attract customers by displaying latest up-to-date habilitate w ith affordable price and Macys on the other hand, turn over not yet able to deliver right messages to buyers. Moreover, Macys desegregation and efforts to become national-wide brand are not unique because most major retailers in the states are now national brands.However, Macys strategy of view themselves as mid-level can become a unique competitive advantage in the afterlife because people would believe its swap is neither cheap nor expensive. This way people wont judge Macys as a cheap store but store which carries affordable items. Nevertheless, Macys still face a serious threat since spurt uniform retailers such as H&M and Urban outfitters are targeting teenagers with truly low prices. One way to improve competitive advantage whitethorn be quality. Customers know H&M is a cheap, fashionable store and they also know habit will wear out if water-washed couple times. By focusing on quality, people may clear paying extra money to purchase Macys merchandise is economy mone y in long- term.3. Overall, Macys consolidation and repositioning strategy suck many advantages since the company converted 15 department stores to Macys 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 comparable brand name, this will reduce advertising costs, customers will easily recognize the brand, and since all stores channelise same products they may draw bargaining power over suppliers. side by side(p) advantage is locations. Since Macys now assimilate approximately 810 stores in 50 states, customers can visit any Macys 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 Macys focus on affordable fashion. People nowaday s value fashion so much that they simply wont purchase clothing that is boring and bland. By recognizing these factors, Macys are working with top designers to attract and show buyers their brand is fashionable and also affordable. Despite of these advantages, Macys also have weakness to worry about. Customers are complaining that the price of merchandise increased and they would shop elsewhere. Macys would reduce these complaints by offering coupons or to perform customer relationship program to recognise those who are liege to the store and give special incentives or discounts.4. ,Department stores are faced with serious threat since industry is declining and competitions are growing rapidly. But Macys have found a bold strategy to compete in a tough market. Macys has a good chance of succeed in 5 years since the store recognizes the trend and strives to meet customers needs. In order to extremely successful in the future however, Macys need to closely monitor competitors such as Nordstrom, ZARA, and H&M to gather competitor intelligence and to react to fast ever-changing market. Brand awareness is also a crucial factor for success. Brand loyal customers tend to be less price sensitive because they have a strong belief that it is worth paying more money. If Macys can build brand royal customers, they would reduce advertising costs, and have positive brand image. Lastly, pricing its merchandise will be a key point for success in 5 years because price is what makes customers to make a purchase or to find a substitute.