Macy’s Cost Structure Macy Inc. (M) has a cost structure that can best be viewed using SWOT analysis, which is a way of evaluating the strengths, weaknesses, opportunities, and threats to the corporation. Macy’s strengths include customer loyalty, a recognizable store name, use of technology, a substantial supply chain, its comprehensive size, and the locations of its stores. In total, these strengths enable Macy Inc. to provide a unique service that offers a characteristic their competitors do not have: merchandise tailored to the customer by store and climate zone. Macy’s main weakness is its cost structure: costs are high compared to their competitors due to a complete operational transformation that includes localizing merchandise by Price changes will have a large effect on the quantity demanded by consumers. Price elasticity for supply would be positive because price and quantity move in the same direction on the supply curve and is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price. Macy’s would have a low elasticity because they purchase in bulk and have little sensitivity to price changes. Macy’s has fixed costs that must be paid regardless of whether they sell merchandise or not. If Macy’s can sell merchandise to cover its variable costs and still have revenue to pay part of its fixed costs Macy’s can operate at a loss in the short run. Estimating elastic effects of price and income changes over time provide insight to the dynamics of Short run vs. long run changes for Macy Inc. Macy’s Inc. has proven very effective in adjusting to changing market conditions by laying groundwork for a data-driven and integrated website and initiating My Macy’s, designed to increase customer satisfaction in every aspect of the company’s operation. My Macy’s reflects the continued effort to build personal relationships with customers and develop customer loyalty with each interaction.
Resources Macy’s (M) (2014). Income statement, February 1, 2014. Yahoo!Finance. Retrieved from
is a leading department store retailer in the U.S. owner of Macy's and Bloomingdale's brands. Macy's, Inc.'s stores sell a range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam and Puerto Rico. Organization snapshot indicates Macys operations in approximately 840 stores under the names of Macy’s and Bloomingdale’s; and 7 Bloomingdale’s Outlet stores, as well as…
have failed to adapt to changes in the retail environment. Indeed, post-recessionary trends suggest that consumers now compare prices with greater ease and take advantage of online retail alternatives. Although Kohl’s is similar to its competitors (Macy’s, J.C. Penney, Sears, and Nordstrom) in that it offers only domestic retail locations, Kohl’s is the only retailer out of the five that does not provide international E-Commerce business services. Shipping only to domestically located destinations…
INTRODUCTION In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry.…
discounts to a more streamlined, manageable set of monthly promotional specials. Overall low prices have replaced sales and coupons of the past. Consequently, the company has updated to a trendier look, while attempting to keep up with competitors such as Macy’s and Kohl’s. Although much of JCP’s new look and pricing has assisted the company in appealing to target demographics, additional merchandising steps could still be taken. Creating additional partnerships with high-end, trend-forward, or well established…
desire for environmentalism with its existence as a for-profit business. The idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders ( I think it should be stockholder since it is financial return). A commitment to the environment can raise costs and hurt margins because environmentally-friendly policies are not the most financially savvy. This issue is important because Patagonia’s entire…
Capital. "I understand they have a wonderful staff and Arthur Sulzberger Jr. is trying to ease the pain, but sooner or later they're gonna have to fess up." Atorino's advice for Thompson: "He's gotta get tough and cut costs." Thompson, for his part, seems open to that. "We believe some cost-cutting is inevitable and necessary," he said in his prepared remarks, adding a caveat that may lend some comfort to the reporters and editors at 620 Eighth Avenue: "We will work hard to maintain a sizeable and robust…
DATA MINING Data mining has emerged as an important tool for identifying useful information from data in almost all industries. Industries are using data mining to increase revenue and reduce costs. According to Seidman (2001), “Data mining is particularly valuable for organizations that collect large quantities of historical information. Banks, insurance companies, credit card companies...use this technology to derive critical information from large, unwieldy data samples.” (p. 6). “We…
Case Study: Nordstrom, Inc. Gina M. Varvelli Boston University 02/06/14 MET MG 448 Assignment 1 Abstract Nordstrom, Inc. Corporate Headquarters is based in Seattle, Washington. It was in 1901 John W. Nordstrom invested the money he earned during the Alaska gold rush in a small shoe store. He was devoted to offering his customers the best service, selection, quality and value. His legacy continues to today. Nordstrom has evolved from a single downtown Seattle shoe store into one…
All Brands Beauty & Grooming 007 Men's Fragrances AlwaysOverview | Always Site AussieAussie Site BraunOverview | Braun Site Christina Aguilera PerfumesChristina Aguilera Perfumes Site Clairol ProfessionalClairol Professional Site CoverGirlOverview | CoverGirl Site CrestOverview | Crest Site DDFDDF Site Dolce&Gabbana FragrancesDolce&Gabbana Fragrances Site Dolce&Gabbana Make UpDolce&Gabbana Make Up Site Escada FragrancesEscada Fragrances Site FekkaiFekkai Site FusionOverview | Fusion…
CHAPTER 1 OVERVIEW OF FINANCIAL REPORTING, FINANCIAL STATEMENT ANALYSIS, AND VALUATION Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 1. Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows: 1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) a. Sawmills:…
