Macy’s Swot Analysis

5 May 2017

The SWOT analysis provides an in depth picture of the rganization’s business and operations. The internal Factors of the organization for Macys include the strengths, and weaknesses. The strengths are the areas where Macys stands out as an upscale retailer store. The strengths include skilled management, positive cash flow, and well- known highly regarded brands (Bateman & Snell, 2009).

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The weaknesses on the other hand are the areas where Macys retail stores lack and perhaps need to improve in order to stay ahead of competition.

The External factors of Macys include the opportunities and threats. These factors play a big role in helping the business grow or hurting the business. The opportunities may include ads on wireless mobile to attracted more customers and reach bigger numbers of sales. The threats on the other hand might include the possibility that competitors will enter the underserved niche once it has been shown to be more profitable (Bateman & Snell, 2009). The SWOT analysis will draw a good understanding of the business situation Macy’s retail store are in the market and against other competitors.

Macys is a retail store that started as a freestanding store and now became a national department store offering a one stop shopping experience for all consumers throughout the country. It has volved and grew into a bigger and more stable type of retail store. In fact it became a national brand throughout the years. Macys incurred some changes throughout these years in addition to being a national brand it had to become part of a more stable and efficient business. In 1994, Macys merged with the Federated Department store creating the world’s largest department store company (Tsiantar, 2006).

This is one of the many moves a company chooses to excel in its position in the retail market industry. One also believe this particular move gave Macys expansion it opportunity to be bigger and reach more states and then became globally. Now this paper is about the SWOT analysis of Macys as a retail store business. The SWOT analysis: strengths, weaknesses, opportunities, threats for Macys (Tsiantar, 2006) Macys strengths include economic scales, purchasing power, efficiencies in the market, and chains into the singular Macys brand, Federated department store can expects greater economies of scale.

Good business practice produces a steady and continuous flow of consumers. The purchasing power of Macys is one of many recently found strengths is it size. In terms of purchasing power, Macys could rival Wal-Mart in its ability to use continuous volume to secure the best prices. Again, Macys have greater leverage in making sure that it secures the hottest merchandise for its consumers. The marketing efficiencies for Macys are through national campaigns. The option of splitting resources for campaigns, Macys is able to buy more national advertisements.

The article reports Macys “the company recorded revenues of $23,489 million during the financial year ended January 2010 (Aarkstore, 2010). The mixed old and new paths includes to competition with pure play internet retailers, Macys has a strong position in being able to leverage the storefront and the internet. On a national scale give Macy’s storefronts the ability to cross promote the internet by its actual presence. All consumers of Macys have the luxury of buy online and having the security of being able to return a particular product.

This special idea placed by Macy’s Management enable Macys with a competitive advantage over other internet retailers (Tsiantar, 2006). The weaknesses Macys have to rebrand most of it product from a regional brand to Macys brand. The branding obviously takes time and this period of time for product to reach the store is crucial in order to secure profits. Thus Macys must try everything to speed up the process to secure a profit through a brand. Some regional brands have value and customers have a relationship with the regional stores. Such stores have spent many years promoting their regional brand with the consumers’ psyche.

Impersonality of a national brand Macys must understand that the availability of a store regionally is because it provides appropriate products and service experiences. Also, replacing the so called affordable luxury labeled brands like Liz Claiborne, Calvin Klein, Jones New York, and Ralf Lauren to better or more defined brand names. Ultimately these affordable uxury brands are placing Macys within the middle of the department store food chain. The recent consumers are more into researching online different options before deciding to go the retail store.

Also, different seasons alter sale and profit margin according to the article “sales should either be flat or will decline slightly (Mallas, 2008). The article was comparing Macys to Wal-mart, and Targets sales and earnings for the year of 2008 (Tsiantar, 2006). Opportunities for Macys with new shoppers are through first impression. First impression usually has a strong impact on loyal customers of the regional department stores. Macys has a power of influence on the suppliers. Macys can influence these suppliers to make the latest and hottest product on the market.

Federated the department stores need to minimize the number of stores and consolidate them to Macy’s (Tsiantar, 2006). Then the lesser names in the market the better Macy’s brand becomes and the stronger it will be amongst other stores. Strengthening the position of Macys in the financial market allows it to better facilitates its funds and cut on cost thus more profit. Threats: Macys have many threat from all kind of competition stores like Wal-Mart, Kohl’s, and specialty stores. If the competition keeps increasing on Macy’s market, Macys is going to be in serious troubles.

Other threats like higher gas prices, higher lesser profit margin. In conclusion Federated Department Store- Macys hold a huge market value within the retail industry. Weighing the internal and external factors Macy’s should be in better and healthier business position. One believe the internal factors precisely the strengths of Macys can and will always make it more valued to all consumers. The name Macys should peak out in the consumer’s interest and get the consumers into the store to increase profit margin. The federated Department Store has many challenges and one of them is to make Macys the department store that once was.

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