Swot Analysis For Macy's

When price increases sales decrease because fewer customers feel the product is a good value. Exclusive distribution rights for national manufacturers would help with increased growth and having vendors make unique products specifically for Macy’s would enable shopper loyalty which would also affect the variable costs.

Macy’s Inc. is one of the oldest enterprises in the United States, belonging to the department stores industry. (Hoovers.com) It is a national brand, owning 850 department stores. During the development of the company, there had several key decisions that were beneficial for the company. However, in recent years, the competitions in department stores industry become more and more serious.

They have spent time and effort to make themselves this way, and it shows in the majority of their stores. Despite the yearly controversy over their cups, the company has mostly good publicity and is well liked. Macy’s needs to grow and to figure out how to compete in the competitive retail industry. While closing down some of their stores is bad for the employees working there, it could be good for the business to figure out where they are still profitable and to take inventory before deciding where to go next. I look forward to seeing how each company continues to grow, or not, in the

2.) In today’s evolving customers, a majority of customers changed their shopping habits. More shoppers research purchases on line and comparison shop. Macy’s must appeal to the new way of shopping and strive to meet the needs of their customer.

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

This report presents data describing the differences amongst the two department stores, their fundamental visions, and comparative statistics. Macy’s or Dillard’s: Differences amongst these competitors There are several aspects you can analyze from each department store. Major pieces do set each one apart from the other. Brand names carried by Macy’s and Dillard’s from an average shoppers point of view can go completely unnoticed unless price is involved. For trend shoppers brand names can either make or break a retail store. It can easily determine if he or she will walk to Macy’s or Dillard’s because they already know the store does or does not carry that brand. This is consistent with each department throughout both stores and

The companies that were chosen for a company analysis include Macy’s, Kohl’s, and Burlington. Since the retail industry has been lagging behind lately, these companies will help determine the prospective financial investment in the retail industry. As Macy’s as our primary company, we chose Kohl’s and Burlington to be the two comparative companies. These companies are comparable due to the same SIC code of 5311 in the subgroup of department stores. These companies offer similar products and services with little differentiation between the three.

Macy’s Inc. is a well-established, historic and profitable company that is known as a quality yet affordable department store. Macy’s is an American icon; therefore our objective is not to change this image, but to modify it to appeal to a more youthful market.

Knowing the importance of a strategic vision, every company undertakes a complete analysis periodically. In order to create a strategic plan the parties involved must know every aspect of the industry and the company at hand. The purpose of this paper is to describe and analyze the retail drugstore industry and then focus on Walgreens, the industry leader in terms of sales. As part of the in-depth analysis of Walgreens, its major competitors will also be described and analyzed. The retail drugstore industry consists of all those stores that contain a pharmacy and sell prescription drugs. It also includes businesses that sell prescription drugs online and through the mail. Most retail drugstores also offer other

In my opinion, the three most critical risks Macy’s faces are retail competition, the influence seasons have on its business, and its possible inability to access capital markets. Not being able to have access to capital and credit markets can increase Macy’s cost of borrowing because it has low credit scores. Just like not being able to pay off debt individually can ruin one’s credit score and give you higher interest rates on loans. Businesses can also have higher rates of interest on loans due to not managing debt well which can significantly affect profits. Macy’s sells most of its products in the fall and during the holiday season from Thanksgiving and Black Friday until Christmas and New Year’s.

The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.

Macy’s Inc. has a very strong network all over in the United States under its two main brand names but the company has very weak geographic presence. All of its business functions are in the United States. Any changes in the economic, political, legal, and social framework of the country will have direct impact on the business operations of Macy’s Inc. and its profitability will suffer many folds.

Macy’s has been around for 100 years, currently operating over 700 stores nationwide, and exploring the idea of expanding globally. A company that has that much experience, assets, and capitals are not likely to be bankrupted. With that being said, the current path and strategy that Macy’s is taking now is slowly killing the company. Their revenue stream has been decreasing to be multiple reasons, controllable and non-controllable. Macy’s should redesign their strategy to reach new markets because their current one is not responding to them as much. As many selections as there are in Macy’s, I think that they should try and carry more at a cheaper rate to encourage the loyal customers for that brand to go to Macy’s. I think the lead time for

CVS and Walgreens continue to fight as top competitors in a growing market. CVS has over 7,000 stores nationwide and is expanding, as is Walgreens today with over 8,000 stores. This market isn’t particularly easy to enter as a major player in the market early because of all the work that needs to be put in to install as many brick and mortar stores or get that much of the market share in a short amount of time. It takes many years to be truly established as a pharmacy chain as Walgreens has experienced, being founded in 1901 and CVS being founded in 1963. This is why the barriers to entry are somewhat high because of the high fixed costs with the construction of brick and mortar stores.

Topshop was founded in 1964 in Sheffield England as a high fashion store for the “young and different” generation. Today they currently have over 500 store locations across 58 countries and 86 of them in the United States. They still follow the same young and high fashion identity that the store was built on.