Bsad 150 - Macy's Case

Caitie Green

BSAD150

9/22/2015

Macy’s Case

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In 2005 the Federated Department Stores converted about fifteen regional chain department stores to a national brand, now known as Macy’s. At a time when big box retailers and department stores were struggling, Macy’s executed strategies focused on the customer’s experience and needs to differentiate their brand from others. Macy’s department store has a high demand in the market yet is also forced to deal with alternative firms that satisfy similar needs.  Macy’s falls into the category of a monopolistic competition in which sellers compete with substitute products within a price range. Some competition that Macy’s compete with include discounter firms such as Wal-Mart and Target, large chains specialized in clothing such as Old Navy, H&M, and Gap, as well as house goods/housewares such as Pier 1 Imports and Bed Bath and Beyond. Many factors were carefully analyzed to help Macy’s achieve a successful consolation.

One factor that has contributed to Macy’s success is the strong management that leads the company. When it came time for the official repositioning, many of their staff members already had professional experience dealing with problems that arose due to gradual conversions prior to the consolidation in 2005. Macy’s management also conveniently had contracts in place with suppliers and distributers to supply the new stores with merchandise when they were open for business. Macy’s had many strong relationships with outside members of the business that led to other opportunities for the firm.