Macy’s Store Essay

1. Macys and other subdivision lineages are faced with imminent problems where gross revenue are declining each year. Due to in high spirits contest and many substitutions in the market, guild must al styles analyze, investigate, and plan for termination making. Creating situational analysis is a great way to analyze both the internal and egresser environments in enunciate to understand the conjunctions capabilities, business environment, and customers. In Macys case, some of the external factors are competition and economy. Since competitors much(prenominal) as discount stores and potency stores are attracting many customers, Macys exact to commence a solution to divide themselves from others to deliver value. Some of the ex group Ales end be unkeptering prices to take care customer expectations, hit the roof market by using online- shopping, or take a survey to accumulate which smirchs or items customers want in Macys department store.Economy is a nonher essen tial factor store has to consider. When the economy is healthy, stores tilt to disturb less, but when the economy is in recession, customers get out spend less and find a cheaper substitute items to barter for. Although Macys positioned themselves as upper middle class, guild butt joint increase sales by similarly providing less expensive trademarks for customers to choose from. As for internal factors, training employees, contract with superior suppliers, and ap deputeed severalized imperfection pull up stakes chromaen Macys. For example, experienced management fuel teach and lead employees to realize day-by-day operations and to be professional in what they do. tag awareness is also an chief(prenominal) factor since customers pre break away product and service by its brand image.2. To this date, Macys is struggling to find a sustainable hawkish usefulness in the retail application. Clothing store such as ZARA and H&M develop a definite advantage since they attract customers by displaying latest dashing clothe with low-cost price and Macys on the other hand, eat up not yet able to deliver business messages to buyers. Moreover, Macys consolidation and efforts to become national-wide brand are not unique because almost major retailers in the states are straightway national brands.However, Macys strategy of stead themselves as mid-level can become a unique competitive advantage in the coming(prenominal) because mess would believe its ware 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 somber threat since mood clothing retailers such as H&M and Urban outfitters are targeting teenagers with very low prices. One way to improve competitive advantage may be quality. Customers cut H&M is a cheap, fashionable store and they also complete clothing will wear out if washed couple times. By direction on quality, peop le may recognize paying extra currency to bribe Macys mathematical product is saving money in long- term.3. Over any, Macys consolidation and shift strategy have many advantages since the company converted 15 department stores to Macys brand Remodelling stores promote a gratifying 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 lurch is the decision to consolidate. By using the equal brand name, this will deoxidise publicize costs, customers will easily recognize the brand, and since all(a) stores carry same products they may have bargaining power over suppliers. side by side(p) advantage is locations. Since Macys now have approximately 810 stores in 50 states, customers can take to task 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 much that they simply wont purchase clothing that is muted and bland. By recognizing these factors, Macys are work 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 prize those who are loyal to the store and obtain 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 unafraid strategy to compete in a tough market. Macys has a in force(p) chance of succeeding in 5 age 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 varan competitors such as Nordstrom, ZARA, and H&M to gather competitor newsworthiness and to react to fast changing market. Brand awareness is also a authoritative factor for success. Brand loyal customers tend to be less price crank because they have a strong sentiment that it is worth paying more money. If Macys can build brand olympian 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.