Unit VIII Project BP&S

Name:_ Erby228342___

Company Name: _Macy’s Inc____

SWOT Analysis

Enablers Challenges

In te

rn al

STRENGTHS:

1. It is one of the largest chain stores

in America as it has over 800

stores (Macy's, 2021).

2. Excellent brand recognition

3. It ships the products to over 100

countries (Macy's, 2021).

4. It has quality customer services

5. They have state of the art and

hygienic stores

6. Wide variety of products from

apparel to accessories, cosmetics,

fragrances, home furnishings

among other consumer goods.

7. Strong customer base and classy

clients and this is due to the

acquisition of Bloomingdale.

8. The store are updated making

them be high-profile stores that

attract customers for trend-

setting.

9. They have a strong market share

giving them an advantageous

position in this competitive

world.

10. They have a better position in the

market because they have

agreements with other companies

like Madonna, Sean combs

among others.

11. Effective Marketing: Macy's has

WEAKNESS:

1. The company does not have enough

revenue generation thus it the

company finds it hard to develop.

2. The company has limited global

brand recognition. The brand is only

widely recognized in the United

States hence there is a need for the

company to work more on

international marketing and online

marketing for better recognition.

3. There is high competition for the

company making its market share

decrease.

4. The company should have many

sources of revenue within its

structure; however, it has only two

lines of business and which are

Macy’s and Bloomingdale.

Therefore, the company should plan

to increase its investment plan by

investing in and operating more

subsidiaries (Business Strategy Hub,

2020).

5. Poor management: it has made many

bad decisions while leaving out the

most important ones.

6. Overdependence on the US Market:

the company depends heavily on the

US market and this increases the

vulnerability to negative

E xt

er na

l OPPORTUNITIES:

1. The company should strengthen

its global presence by selling

services and products globally.

2. Expand eCommerce sales by

increasing their online market

share. This will make Macy's

have the highest growth potential.

3. The company should diversify

products to other markets like the

food industry or second-hand

clothes.

4. Focus on Emerging markets:

there is an increase in the demand

for luxury products and high-end

designer brands in emerging

economies in Asia, Africa, and

Latin America. Hence Macy's can

experience tremendous growth

(Collins, 2021).

5. Expand through mergers and

acquisitions as they offer the

opportunity to expand quickly in

the emerging market.

THREATS:

1. Global recession due to the

pandemic.

2. Declining retail sector: many stores

like Macy’s have suffered from less

profit and revenues for the past years

and if the trend continues, Macy’s

profitability and long-term

sustainability are on the line (Forbes,

2021).

3. Stiff competition from other retail

stores.

4. Trade pressures: trade cab be

influenced by many issues like

economic factors, politics, and trade

wars.

5. Uncertain times due to the

pandemics.

6. Low prices are offered by elite

brands such as Wal-Mart.

How the above information will be used:

Measuring the performance of the organization can be accomplished by evaluating the

results that are expected and comparing them to the actual results (David et al., 2020). Besides,

the long-term and short-term objectives of the company are measured. Hence the organization

must come with corrective actions when the expected outcomes are not achieved. However, for

effective evaluation a swot analysis tool is used.

A swot analysis is a commonly used tool for strategic planning after brainstorming the

strengths, weaknesses, opportunities, and threats of the company. Hence with the above

information provided by the swot analysis, the company can evaluate the perceptions of the

customers. This will the company to know what kind of products the customers like most.

Customer satisfaction can also be generated by the information in the swot; this can help the

company to know the quality of their services and how they can improve them to meet the needs

of the customer(Granulo & Tanovic, 2020. The managers can also use the information to find

out the best practices that can help the company to accomplish their daily work like delivery of

services.

Besides, each company aims to remain competitive in the market and to provide quality

services that their customer needs. The products and services should be all under the fulfillment

of customer needs and cost-effectiveness(Granulo & Tanovic, 2020. Hence the information in

the above swot analysis can be used to identify strategies and ideas that go hand in hand with the

resources and abilities of the organization with environmental needs. The information in the

swot analysis also shows the company's advantages and the managers can use that information to

be in an advantageous competitive position (Granulo & Tanovic, 2020.

In conclusion, swot analysis contains information about the company's weaknesses,

strengths, opportunities, and threats, and the managers can use that information to explore the

capabilities of the company, correct weaknesses that might be affecting the companies growth,

and counteract the threats.

References

Business Strategy Hub. (2020, November 30). Macy’s SWOT

analysis. https://bstrategyhub.com/macys-swot-analysis/

Collins, T. (2021, August 27). African business. African Business. https://african.business/?

name=

David, F. R., David, F. R., & David, M. E. (2020). Strategic management: A competitive

advantage approach, concepts, and cases (17th ed.). Pearson.

https://online.vitalsource.com/#/books/9780135203736

Forbes. (2021). https://www.forbes.com/companies/macys/?sh=752f855214f4

Granulo, A., & Tanovic, A. (2020). The advantage of using SWOT analysis for companies with

implemented ITIL framework processes. 2020 43rd International Convention on

Information, Communication and Electronic Technology

(MIPRO). https://doi.org/10.23919/mipro48935.2020.9245393

Macy's. (2021, 7). Macy's, Inc. Macy's, Inc. https://www.macysinc.com/