Macy’s to protect itself. It is a chance

Macy’s Inc. is a traditional retail department store. Over the years Macy’s has maintained their upward market appeal and has registered healthy growth during their holiday seasons (Singh, 2012). As times change consumer tastes, properties that stimulate growth, and market dynamics change, and new factors of external threats and opportunities emerge. Macy’s faces a certain level of external threats that can impose a severe impact on the business operations of the company (Singh, 2012). Threats:The retail markets in the United States are highly competitive, with a substantial number of market players offering a wide range of products. J.C. Penney is one of Macy’s key competitors. J.C. Penny has announced plans to reinvent itself, with some new policies such as price reduction. They recently signed an agreement with Macy’s ally, Martha Stewart (Singh, 2012). Keeping this in mind, Macy’s should take measures to protect itself. It is a chance Macy’s might lose customers to J.C. Penney as a result of some of J.C. Penney’s changes and improvements.Discount stores: Industry giants such as Wal-Mart and Costco are especially price-competitive in comparison to Macy’s. During adverse economic conditions, these stores have the advantage over exclusive retailers like Macy’s (Singh, 2012). Discount stores are Macy’s most significant threat. To compete with these stores Macy’s Inc. needs to reinvent itself. This means emphasizing specific discounts for the deal-hunting shoppers and de-emphasizing discounts on significant name brand items. Along with cutting clutter in stores, so that Macy’s can build a selective aura around hotter brand names that can draw more customers and sell at more significant profits.Opportunities:Online Shopping: E-commerce holds vast potential for Macy’s. Its reputation has grown in recent years, and more people are transacting over the Internet than in past years. Through Macy’s Internet business, they have launched a mobile application for the iPhone, and they have plans to expand its online platform more to create more revenue (Singh, 2012).Emerging markets: the purchasing potential of the increasing middle class is emerging into markets such as India and China. There has been a demand created for lifestyle products in these two countries. Taking ideas from other lifestyle brands that have a successful presence in these countries, Macy’s can initiate the process of exploiting them. Macy’s opportunities measure higher than its threats and weaknesses. Macy’s E-commerce platform is their most significant opportunity. Macy’s needs to put more emphasis on developing their E-commerce platform in order to increase their sales and profits.  As they close 68 of the 880 store locations (Business Insider, 2017), they need to start a company-wide restructuring that will shift more resources to their online E-commerce platform.