Sample Essay on SWOT analysis of Macy’s

SWOT analysis of Macy’s

Macy’s is a retail chain of departmental stores based in the United States. It operates under two brand names, Macy’s and Bloomingdale with presence in more than 45 states in the US. Macy’s offers a wide range of products, specializing in jewelry, household goods, clothing, and footwear among other related products. To meet the needs of its customer in other parts of the world; outside America, Macy’s has online shipping services. Its business segments are Macy’s,, Bloomingdale’s and This SWOT analysis of Macy’s details the company’s strengths, weaknesses, opportunities, and threats.

Macy’s stocks are traded on the New York Stock Exchange, with the symbol M. The chain has a market capital of more than $13 billion, coming second after Kohl’s, which has $16 billion. Read on to find out more on the internal and external business environment affecting the company.

Strengths: SWOT analysis of Macy’s

Macy’s is one of the leading retail outlets in America, specializing in a wide range of products. In 2010, the company recorded annual revenue of $20 million from its business divisions. Macy offer more than 800 departmental stores in about 40 states while Bloomingdale involves at least 40 departmental stores in about 12 states countrywide.

Macy’s is also listed on the NYSE, where its shares are traded. Besides this, Macy’s is on the list of top 500 Fortune Companies, where it holds position 103. These ranking cement Macy’s market bases, positioning and strategy to outshine its competitors.

Macy’s targets high-net-worth consumers with its distinct brands for classy customers. With its upscale merchandise, the chain stock newest looks and latest trendsetters in the world of fashion. It also stands out in providing better customer value for its customers with attractive portfolio of strong private brands.

Weakness of Macy’s

SWOT analysis of Macy’s make public that while the company enjoys a strong network in the US, under its two main brands, it has a weak geographical presence. Notably, the chain has all its business functions in America. This means that in the event of political, economical, legal or social changes, Macy’s would suffer dire consequences.

Additionally, Macy has a history of lawsuits and legal proceedings. The effect of these suits ranges from poor reputation that harms the brand image to hefty fines. This may have far-reaching negative effects in terms of profits and then company’s goodwill.

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The company also experience fluctuating revenue. For example in 2011, it registered a low growth of only 0.5%. This was unexpected owing to the type of its venture. Lastly, Macy’s lacks good diversification. Today, the chain only has Macy’s and Bloomngdale as its main business segments.

Opportunities: SWOT Analysis of Macy’s

From this SWOT analysis of Macy’s, it is evident that the company has several opportunities to explore as it seeks to maintain its business niche. Importantly, Macy’s has low presence in countries outside the US. These countries, among them are emerging economies like China and India. The potential that these markets offer is too great for any leading company in the world to   take them for granted. This will allow biz expansion. The chain could also consider strategic mergers and acquisition, targeting companies in the same industry. This would help to increase market presence without expanding across borders.

Macy’s also has a chance to expand its service offerings. Today, the chain only offers home-related items and routine products. It can diversify its services and venture into other options such as private label brands to win more customers.

Real threats of Macy’s

Several threats pose challenges on the operations of Macy’s. Firstly, the stiff competition in the US retail market exerts massive pressure on the company. Its top competitors are Dillard’s, Inc., J. C. Penney Corporation, Inc. and Saks Incorporated.

Another potential threat is economic recession in the United States. The slow economic growth in America continues to affect businesses especially in the local market. Because of this, customers are changing their priorities and have low purchasing power. If the trend continues, the company may suffer huge losses in future. Changes in rules and regulations by the US government may also affect Macy’s negatively.

This SWOT analysis of Macy’s has provided you with details of different environmental factors affecting the chain. Was this helpful?

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