Macy’s Store Essay

1. Macys and different surgical incision chisel ins are faced with imminent problems where sales are declining each year. Due to high challenger and m any(prenominal) substitutions in the market, union must always analyze, investigate, and plan for decision making. Creating situational analysis is a neat way to analyze both 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 frugality. Since competitors such as deductive reasoning stash aways and specialty stores are attracting many customers, Macys need to find a solution to differentiate themselves from others to preserve value. Some of the examples can be lowering prices to meet customer expectations, expand market by victimization online- shopping, or take a survey to gather which defacements or items customers want in Macys department store.Economy is another crucial factor store ha s to consider. When the economy is healthy, stores tend to worry less, but when the economy is in recession, customers will spend less and find a cheaper substitute items to purchase. Although Macys positioned themselves as speeding middle class, company can increase sales by also providing less expensive brands for customers to pick from. As for internal factors, training employees, contract with excellent suppliers, and positive recognized brand will corroborate Macys. For example, featured management can teach and lead employees to perform day-to-day operations and to be master key in what they do. Brand awareness is also an important factor since customers judge carrefour and service by its brand image.2. To this date, Macys is struggling to find a sustainable militant value in the retail pains. Clothing store such as ZARA and H&M break a definite advantage since they attract customers by displaying latest fashionable clothing with affordable price and Macys on the othe r hand, wipe out 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 straight national brands.However, Macys strategy of positioning themselves as mid-level can become a unique competitive advantage in the future because good deal would believe its trade 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 fashion clothing retailers such as H&M and Urban outfitters are targeting teenagers with very low prices. One way to reform competitive advantage may be quality. Customers know H&M is a cheap, fashionable store and they also know clothing will wear out if washed couple times. By focalisation on quality, people may recognize paying extra money to purchase Macys merchandise is saving money in long- term.3. Overall, Macys co nsolidation and repositioning strategy have 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 ability to this exchange is the decision to consolidate. By using the same brand name, this will chasten advertising costs, customers will good recognize the brand, and since all stores carry same products they may have bargaining power over suppliers. conterminous advantage is locations. Since Macys now have 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 nowadays value fashion so ofttimes that they simply wont purch ase clothing that is boring and bland. By recognizing these factors, Macys are working(a) 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 incorruptible 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 fence in a tough market. Macys has a good chance of succeeding in 5 years since the store recognizes the trend and strives to meet customers needs. In order to extremely thriving in the future however, Macys need to closely monitor competitors such as Nordstrom, ZARA, and H&M to gather com petitor intelligence and to react to fast 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.