This website uses cookies to ensure you have the best experience. Learn more

Memo Of Macy's Department Stores Repositioning

605 words - 3 pages

Memo of Macy’s Department store repositioning

Case Synopsis
The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent.
Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors.
Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), ...view middle of the document...

General economic environment: the country was entering a significant recession. (Negative)
b. Industry life cycle model: traditional department store industry is in the “mature” phase or even “decline” phase. (Negative)
c. Intense competition between the existing companies and the rise of online shopping. (Negative)
Here are the internal factors I believe that could affect the success of the company’s strategy:
a. Macy’s is recognized as a national brand with national advertising
b. Customer bases
c. New stores in prime location
d. Strong management

2. Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its strengths and weaknesses?

a. The consolidation
b. Macy’s image as “America’s department store”
c. Remodeling stores to promote a pleasant shopping experience
d. Affordable luxury
e. Changing the brand to focus on attracting customers interested in fashion
a. The quality of merchandise and service has deteriorated
b. Macy’s attempt to standardize merchandise and pricing across all 810 stores

3. Porter argues that the goal of strategy, and a key to achieving a sustainable competitive advantage, is finding a unique and valuable position. In your opinion, has Macy’s found a unique and valuable position in the retail landscape through its new strategy? Explain?

In my opinion, Macy’s has attempted to place their stores in a unique position as a “mid-level” store which is a good positioning for its new strategy. However, the decision to consolidation is not unique.

4. What is your prediction for the future of Macy’s? Where do you think the company will be in 10 years if it continues with the strategy outlines in the case? Explain the reasons for your prediction in some detail.

As far as I am concerned, Macy’s cannot success with the strategy outlines in the case. Although Macy’s has launched a bold strategy, the external environment especially the industry life cycle is in decline and competition is growing rapidly. I believe that Macy’s should count more on the technology development, such as E-commerce, to open an online shop is a good try for Macy’s.

Other Papers Like Memo Of Macy's Department Stores Repositioning

Bill Deburger Essay

554 words - 3 pages Bill DeBurger, In charge Accounting Bill DeBurger was an in- charge accountant of the firm where he used to work. He had 18 months of experience; and he had been working for more than 900 hours in the audit of Marcelle Stores. The audit team was formed by Bill, two staff accountants, and five internal auditors. After two months of intense work, Bill had the responsibility to write the inventory memo. When Bill began to think about what he

Management and Leadership Essay

1928 words - 8 pages Management & Leadership: Macy’s Shaniece Roberts MGT/330 June 18, 2012 Jo Hogg Management & Leadership: Macy’s Before beginning, a little introduction to the company is in order. In 1858, Macy’s was born, meaning 153 years of running. Macy’s is one of America’s iconic retailing brand and department stores. The department store has about 800 stores open throughout the United States as well as a website. Macy’s

J. C. Penney is changing its competitive strategy

1513 words - 7 pages tanpa sen. Penney merancang untuk membelanjakan $ 80000000 sebulan pada program ini. 9. The move is risky, as shoppers have become rabid bargain hunters. But the old strategy wasn't working. Sales at stores open at least a year, a key measure of a retailer's ability to draw customers, rose a thin 0.7% in the 11 months through December, down from a 2.7% increase the year before and well behind Macy's 5.4% gain. Langkah ini adalah berisiko

MEM Case Study Questions (Harvard Business School)

1258 words - 6 pages products, it is essential to reach out to these consumers by ensuring that the products are widely available and in doing so, capturing more market share. This could be done through department stores, specialty stores, as well as food stores which is a channel MEM has yet to venture into.Furthermore, the different product lines and sales force of MEM would put them in a strong position to sell to major food chains with strong emphasis on assortment

Products and Services

810 words - 4 pages , consumers can compare prices, research products, check inventory, provide product reviews, and even exchange or return recently purchased products from the comfort of their homes. This paper will present a case study outline of technological innovations that have helped shaped the retail industry with a focus on the Macy’s stores. Technologies affecting retail: Retail business as we know it today has been shaped by a mix of technologies. First and

Aldo Marketing Strategy

2677 words - 11 pages stores in the New York area, including Macy's, Bloomingdale's, Lord and Taylor, and Gimbel's. Over the next two years the Tangiers line swept through the American market, capturing sales in all 50 states by 1987. Tangiers International opened nine sales offices across the country, establishing an apparent U.S. beachhead for parent Algo. In spite of the initial dramatic success of Tangiers International, the volatility of the fashion industry and

Ralph Lauren - Polo - Strategy Case

1894 words - 8 pages every section of a department store -- there's even Ralph Lauren paint at Home Depot -- the company remains profitable as a leader in the fashion and retail industry. By mutual agreement, Ralph Lauren and JC Penney, which markets mid-priced American Living-branded clothes and housewares through a partnership with the upscale brand, ended their relationship effective in Q4 fiscal 2012. To give the apparel maker more control of its operations in Asia


1343 words - 6 pages Product Reassessment: Blockbuster Dinah McGruder Professor: Andrea Benjamin Principle Of Marketing 100 12/2/2012 Product Reassessment: Blockbuster Blockbuster Corporation has to reposition them-selves in order to sustain growth in slow market and to correct past mistakes which lead to the company’s bankruptcy (Lamb, Hair, & McDaniel, 2012, p.144). The repositioning of Blockbuster has to change consumer’s mindset of believing

Urbn Financial Analysis

4900 words - 20 pages also means that our Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN stores compete against a wide variety of smaller, independent specialty stores, as well as department stores and national specialty chains. Many of our competitors have substantially greater name recognition as well as financial, marketing and other resources. Our Anthropologie, Free People and BHLDN stores also face competition from small boutiques that offer an

Retail Marketing Investigation

3485 words - 14 pages Retail Marketing Investigation Report MKT236 Retail Marketing: Assessment 1 Word Count: 2789 Executive Summary The aim of this report is to examine the characteristics of merchandise assortment and store design within two retail companies to identify constituents that can have a negative and positive influence on the stores. Apparel department of two discount department stores were selected and observed in the constituents

Rnb Financial Structure

1443 words - 6 pages in the sale of Kosta, and the closure of the Sisters concept has been initiated. However, the major activity has been the strategic review of the business concept in JC. RNB and the changing market Market conditions during the fiscal year 2012/2013 got even tougher with relatively weak consumer confidence and negative growth for the third consecutive year in comparable stores, with increasingly aggressive offers from e-commerce players, with

Related Essays

Developing Good Business Sense Essay

999 words - 4 pages excellent customer service, Advanced chefs and cookers, and trained servers skills (Red Lobster, 2007) 3. Macy's, Inc., with is one of the nation's largest department store retailers. The company operates 848 department stores in 45 states. Some employee task includes: a Sales Associate-Customer service priority and selling priority, Teamwork oriented with the ability to work in a learning environment, as well as, a strong sense of pride and

Porter's Six Forces Analysis General Retail: Merchandise/Department Stores

2399 words - 10 pages Agreement to Open Additional Sunglass Hut Points of Sale in About 430 Macy's Department Stores in the U.S. (4  December). PR Newswire,***[insert pages]***.  Retrieved February 18, 2010, from ABI/INFORM Dateline. (Document ID: 1914641891). <> 18

The Organizational Culture And Communication Of Macy's Inc

673 words - 3 pages work environment to attract and retain top talent. The goal is to “encourage creativity and innovative thinking, which is at the heart of our success” (Clark, 2010). The Macy’s corporation realized that the multicultural society they serve needed to be reflected by the workforce. “Diversity is a strategic business initiative…this approach helps Macy's better understand and satisfy the needs of its increasingly diverse customer base and creates deep

Macy's Vs. Marshalls Essay

2011 words - 9 pages most successful and respected retail institutions. The company continues to prosper by adapting and flowing with new demands on department stores in an ever-changing society. Embracing the words and philosophy of one of its founders, Fred Lazarus Jr., Macy’s, Inc. succeeds by striving to be “a living mirror of our civilization in which we see the constant changing needs and wishes of our people.” Macy's, originally R. H. Macy & Co., is a mid