Macy’s Department Store Repositioning Essay

exe push asideive director SummaryAs the global time out happened, the traditionalistic discussion section stores were experiencing consistently declining sales and market dowery. in addition, the traditional section stores persistence is between mature and decline full point of life cycle. Macys transportd parts of their system and consolidation that digestes on localizing management, strengthening supplier consanguinitys and providing products and customer service based on local consumer preferences. However, the consolidation was non with hassles. With relations these problems Macys changed parts of the outline as following* Continuing to adjust its portfolio of store.* direction on Fashion.* Continuing to develop and introduction Macys private labels in bedding, outwears and so on* Increasing guinea pig advertising with accent on trend and service. Statement of the problem/opportunity/and objectivesThe tradition department stores were i of the argonas hi t by the recession. While round companies dropped previously supported causes and programs, Macys got much(prenominal) profit and market sh argon th crude(a) with(predicate) repositioning system and consolidation, even with the rough economic times. Analysis of the situation outer and inwroughtMacys is a bod of traditional department store, and consolidation in 2005, at that time the economy is kinda good. In 2008, the broad milieu is non good the economy of U.S. entered a recession. The sales of Macys are decreased. Also, in 2011, the price of gasoline and cotton were increased. This increased the price of Macys. So the profit and market share of Macys reduced. As the department stores patience was attracting fewer and fewer consumers, Macys entered into the declining manufacturing life cycle model. The recession and the declining constancy life cycle model are both negatively affect the supremacy of Macys. Although the external factors are not good, the home(a) fa ctors are very good for Macys. champion much(prenominal) factor was Macys has the national recognition. Anformer(a) positive factor is Macys is really strong. It has 810 stores across the United States. Thirdly, Macys has the experience management. Macys was founded between 1843 and 1855 in dumptown Haverhill, Massachusetts. Department stores created for one-stop shopping, Moreover, they had special(prenominal) experience in converting regional brands to the Macys brand. A fourth factor contribute to the successful consolidation was that Macys do their stores on choice locations. These internal factors are positive for the success of Macys.Porters five forces modelPorters five forces model describes the competitive environment in terms of five base competitive forces 1. The affright of new entrants. Macys had more competitors because more and more successful fashion lines join to the market to bring out the market shares, such as H&M, Forever 21. Self-made fashion brands remodeled for more pleasant shopping experience. It is the threat for Macys. Also, the real national stores allow the overthrow speak to and overcome quality and service said(prenominal)(p) as Macys, it cause the opposition.2. The negotiate motive of buyers.Buyers threaten an intentness by forcing down price, bar suck uping for higher quality or more service, and playing competitors against each other. Macys has debase cost but because of the icky economic, the customers have little bargaining power. Secondly, Macys already had occasional value. They give commence price means they will touch on lower profit. Low profit creates incentives to lower purchasing costs. However, highly profitable buyers are generally less price sensitive.3. The bargaining power of suppliers.Supplier power refers to the susceptibility of providers of inputs to determine the price and terms of supply. Suppliers nominate exert power over firms industry by raising prices or cut down the quali ty of purchased goods and services, so reducing profitability. after Macys consolidation, Macys bought mass amounts from same buyers and Macys have strong relationship with these buyers. The bargaining power of suppliers is really high.4. The threat of substitute products and services.All firms and industry grapple with other industries offering substitute products or services. The threat of substitute products and services was the major concern, particularly with discounters such as seat offering similar products, and large cooking stove that specialized in clothes such as H&M. 5. The intensity of the arguing among competitors in an industry Rivalry refers to the decimal point to which firms respond to competitive moves of the other firms in the industry. Macys repositioned its industry segment to the speed middle direct. Macys decided to change the dodge, they will be more cool and fashion at lower price. Also Macys change the brand to focus in attracting customers intere sted in fashion rather than customers in a specialised demographic.Unique and a sustainable competitive advantageMacys repositioned itself as an upper-middle level store is easily imitable. Other department stores in any case can position as the same level. precisely Macys guarantee to become Americas department store is something that other, small department stores cannot imitate. Also, Macys focus on less traditional and conservative than other department stores is a flawed value proposition, but it is not a giving one. Because of some of the consumers may like the traditional Macys. Consolidating brands to allow for lower prices is a good way to cut cost and to be unique.Identification and military rating of alternativesMacys consolidation and repositioning strategy is really good and Macys did the top hat decisions. Because as the external environment is bad but Macys use itself internal advantage to consolidate and reposition to gain back the market share and profit. co nsolidation and repositioning strategy help Macys get more brand power, prime location and improved consumer experience. Additional Macys got consumers focus on the devoteable fashion. However, it also came with some problems such as perplexing industry conditions, excess costs and vehemence on standardization.Macys FutureAs Macys pursued an aggressive strategy in 2011, Macys was doing well. Almost everybody knows the everyday value of Macys and Macys afford the America department store. But department stores industry is in declining and competitor is growing rapidly. Macys has recently instituted the strategy to compete in a tinder market. So Macys is doing well and have huge advantage, but maybe other department stores will catch up and overcome in following years. Macys may change strategy when economy, competition change.