Macy's 2005 Essay

Macy’s 2005 strategy was geared towards repositioning the traditional department store industry to better suit the changing business environment. Federated pushed the acquisition of several regional chains and their conversion into the Macys brand. The consolidation and acquisition enabled the Macys brand to be identified as a national brand with national advertising. Several internal factors affected the success of Macy's strategy. Once such factor is that Macy's and the federated management team was strongly skilled and experienced in the retail and department store field (Johnson & Kim, 2009). The management team was also experienced in converting regional brands to Macy's brand and understood that complexity of brand conversion. Another crucial factor is the fact that the company had strong ties with major suppliers, which were already on contract, hence management understood the logistics that applied to these suppliers, and as such, the advantage of having distribution networks already in place made an enormous difference for the success of the strategy. The standardization of prices across the chains of stores is another internal factor that affected success since some of the stores acquired had lower prices before the transition to the Macys brand.

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The company also got their brand reinforced by national advertising campaigns solidifying its position as America’s department store. Hence, management could focus on developing strong customer loyalty and differentiation from its competitors due to its less conservative and traditional style compared to department stores. This is designated as a strength for the company which can be utilized to meet the set goals and objectives, hence sustainable growth (Kossowski,