Paper Example on Macy's Strategy: Market Leadership and Consumer-Driven Innovation

SWOT Analysis

Strengths

The company has a strong market leadership position in the execution and strategy industry, which has enabled it to scale new successes in their products.

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Despite the company facing intense pressure from its competitors, it is still ranked highly in terms of profitability and profit margins.

The department of Macy's has sound recordings at consumer-driven innovation, maintaining good track records in innovation.

In the strategy and execution industries of Macy, there is a great recognition of the brand that has enabled the business to charge a premium as compared to its competitors.

Weaknesses

There is great competition in the industry which has created pressure on their profitability. This situation can be managed appropriately if the company objectively assesses the value of its current products.

The company is experiencing a decline in market share, due to increased revenue and due to the execution and strategy industry growing more extensive than the company. The department in Macy's should ensure an analysis of the current trends in the sector, to outline what needs to be done for future growth.

The business model of Macy's can be imitated easily by other competitors in the industry, raising a need for the company to establish a model that can incorporate vendors, suppliers and other users.

Opportunities

Since the firm has strong brand recognition in the premium section, there is an excellent opportunity for them in the trends of customers migrating to high-end products. The lower segment can ensure that customers experience excellent customer service. This will provide increased profitability.

While the government increases its regulations, Macy's can ensure an increase in its customer base. Most customers have to migrate from operators who are disorganised in the industry to licensed players. This provides Macy's with a chance to get accessibility to the entry-level market with a no-frills offering.

Macy's department can quickly expand into the market in the United States. This is because the US economy is experiencing a faster growth rate as compared to any other developed economy. The department is at a more significant advantage since it already has excellent knowledge on how to operate in the US market.

Threats

The company can easily face challenges n the skilled human resources shortly, due to their high turnover of employees and over-reliance in innovative solutions.

The company is still facing significant challenges and competition from local and international firms. Competitors can easily catch up with product development despite the department of Macy's being leaders in product innovation in execution and strategy segments.

Trade relations between China and the United States can alter Macy's plans to expand its marketing operations in China

Cutting Costs and Closing Stores

Growth in company profitability through discarding old traditions and replacing them with a vision of the future and cutting costs and closing of stores will ensure the company focuses more on investing heavily on its online operations (Won-Yong et al., 2018). However, The Company can easily face challenges n the skilled human resources shortly, due to their high changes of employees and over-reliance in innovative solutions.

Reinventing the brand

The company is set to using the latest technology and be first in significant innovation. A positive side of this is that the company has talented employees who will ensure good customers experience, and appeal the young, sophisticated customer. With most competitors providing renewal of their brands, the company will have to ensure uniqueness to ensure they keep their customers away from competitors (Won-Yong et al., 2018).

Expanding Global Reach

Macy's looked into expanding their online global presence. Mobile payments will be a real convenience to customers. Customers will easily us their cards in stores and make easy payments, by uploading a Macy card using their camera (Won-Yong et al., 2018). While this will be expensive to establish and implement due to the company's financial position, shopping will be made more comfortable and more private. Trade relations between the United States and China can also alter their plan.

References

Won-Yong ho, Ratchel Zeng, Jessica Schuldhaus. (2018). Macy's Inc Turnaround Strategy in Crisis.