Macy's SWOT Analysis

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Macy's SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm
and the environmental Opportunities and Threats facing that firm. SWOT
analysis is a widely used technique through which managers create a quick
overview of a company’s strategic situation. The technique is based on the
assumption that an effective strategy derives from a sound “fit” between a firm’s
internal resources (strengths and weaknesses) and its external situation
(opportunities and threats). A good fit maximizes a firm’s strengths and
opportunities and minimizes its weaknesses and threats. Accurately applied, this
simple assumption has powerful implications for the design of a successful
strategy.”
Macy's
Macy’s (formerly Federated Department Stores) is one of the premier
retailers in the US. The company’s focus on the upscale fashion apparel market
has enabled it to address the needs of the niche market, giving it a specialized
brand identity. However, if the US economy continues to recede, it would further
impact the consumer’s discretionary spending capacity with consumers switching
to cheaper brands. This could in turn affect the demand for the company’s
upscale luxury products adversely.
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Macy's SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong brand equity
¾ Declining net profit
¾ Bloomingdale’s focus
on an upscale niche
¾ Large network of
stores
External
Opportunities
¾ New stores to boost
Threats
¾ Economic
revenues in the
slowdown in the
medium term
US
¾ Growth through
¾ Increased minimum
overseas operation
wages in the US
¾ Growth in online retail
¾ Intense competition
spending
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