A market research on Macy's

1. Strategic management case study
By Mihika Baisya
12030141003
MBA-IT Div-B
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2. Agenda for the day
• Company Overview
• Business Model
• Organizational Structure
• SWOT Analysis
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3. Brief History
Rowland Hussey Macy Macy’s Thanksgiving Parade 1932
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5. The Business Model
• Business to customer model
• Highly consumer driven
• Retails several brands Alfani, Anne Klein, Bar
III, DKNYC, Ellen Tracy, Tommy
Hilfigure, Armani, Calvin Klein…
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7. Organizational Structure
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8. SWOT Analysis
Strengths Weaknesses
• Strong brand equity • Macy as a declining net profit
• Strong advertising • Downturn in economy for in store
• Economies of scale shopping
• Ethical, socially responsible, and • Lack of diversification in the
sustainable company with strong merchandise
value • Not being able to find the middle
• Bloomingdales a subsidiary of Macy’s ground between Wal-Mart’s low
appeals to upscale customers while prices, and Bloomingdales high prices
Macy’s offers “affordable luxury” while maintaining reputation.
items. • Macy’s has to overcome the client’s
• Large piece of the market share perception of the impersonality of
national brand
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9. SWOT Analysis contd
Opportunities Threats
• Open new stores to boost revenues in • The economic recession in the United
the medium term States
• There is a growth trough overseas • The increase of the minimum wages in
operation the United States
• There is a growth of sales in the online • Intense competition in the retail
retail spending stores such as Dillard’s, JC Penney, and
• Many smaller stores are looking to be Saks
bought out because of the recession • Lower price competition
• Merchandise such as • Numerous employee layoff
apparel, cosmetics, and children’s • A change in customers has occurred
clothing are experiencing fastest over the past year, but Macy’s has not
growth changes to satisfy customers.
• Robotic machines to help sales such as
IPods and IPads
• Opportunities to buy out smaller
brands because of its size
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10. Macy’s Video
• http://video.foxbusiness.com/v/1113195521001/kee
ping-the-macys-brand-fresh-in-a-tough-economy/
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11. Sources
• "Macy's Inc. History." Macy's Inc.. Sanger and Eby, Web. 7 Apr 2012.
<http://www.macysinc.com/AboutUs/History/default.asp&xgt;.
• "Organizational Chart, Macy’s." The Official Board. Septemper 23, 2012. Web. 7 Apr 2012.
<http://www.theofficialboard.com/org-chart/macy-s>.
• "Macy’s." Company-Statements-Slogans. Web. 7 Apr 2012. <http://www.company-statements-
slogans.info/list-of-companies-m/macys.htm>.
• Hart, Carly. "Macy’s 2009 Reorganization Means 7,000 Layoffs." Yahoo Voices. Web. 7 Apr 2012.
<http://voices.yahoo.com/macys-2009-reorganization-means-7000-layoffs-2604039.html>.
• "Macy." Yahoo Finance. April 5, 2012. Web. 7 Apr 2012. <"Macy." Yahoo Finance. April 5, 2012. Web. 7
Apr 2012. http://finance.yahoo.com/echarts?s=M Interactive
• "FDO: Munich Stock Chart- Macy’s." Bloomberg. April 5, 2012. Web. 7 Apr 2012.
<http://www.bloomberg.com/quote/FDO:GR/chart>.
• "Financial Ratios for Macy’s." Barchart. April 5, 2012. Web. 7 Apr 2012. <http://www-
04.aws.barchart.com/profile.php?sym=M&view=ratios>.
• "Social Responsibility." Macy’s Inc. 2012. Web. 7 Apr 2012.
<http://www.macysinc.com/aboutus/sustainability/>.
• “Maps." Macy’s Inc. 2012. Web. 7 Apr 2012. <http://www.macysinc.com/Macys/maps.asp&xgt;.
• "Macy’s Fact Book 2011." Macy’s Inc. April 2, 2011. Web. 7 Apr 2012.
<http://www.macysinc.com/Investors/vote/2011_fact_book.pdf>.
• David, Fred. Strategic Management Concepts and Cases. 13th ed.,. Upper Saddle River: Prentice
Hall, 2007. Print.
• Supman, Jacqueline. "Case Study: Macy’s Private Label." Merchandise Strategies. Web. 4 Apr. 2012.
<jacquelinesupman.com/downloads/jsupman
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