Summary Statement of the Case
This case present a conflict between Macy’s and MSLO after developing a strategic partnership. Macy’s Inc. is one of the nation’s premier omnichannel retailers. The company operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Due to the high competition in retailing business Macy’s implemented in 2012 three-pronged business strategy to increase their sales and maintain their position in the market. This strategy was to enable Macy’s to reach both online and in store customers and provide them with a unique choice of merchandises.
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Martha Stewart Living Omnimedia, Inc., is a global lifestyle company. The Company operates in three segments: Publishing, Merchandising and Broadcasting. Over the past years MSLO expand their merchandise through a number of retailers and manufacturers. In late 2011, MSLO signed an agreement with JC Penney which led to a law suit between them and Macy’s. Macy’s claimed that the agreement was in violation with the exclusivity of its contract with MSLO. Although this lawsuit was very costly for MSLO Macy’s and Martha Stewart resolved the issue and announced a settlement on January 2, 2014. Discussion Questions 1.
What are the external factors impacting Macy’s in the retailing business and Martha Stewart Living Omnimedia?
The external factors impaction Macy’s in the retailing business and Martha Stewart Living Omnimedia are political, economic, technological, and social factors. There are two main factors impacting Macy’s retailing business. The first one is the advance of e-commerce in the 1990s and early twenty-first century. Customers were now exposed to online competitors who sometimes had the same products at a lower price. The second factor is the growth of specialty stores and discount stores such as Target and Wal-Mart. Due to the economy hardship customers were trading the higher levels of customer service and products selection to more affordable products in other to save money.
Martha Stewart Living Omnimedia was impacted by two legal troubles. The first one was related to Martha Stewart herself. She was charged with insider trading in 2003. This led to bad publicity and prohibited her from a leadership position for several years. The second legal trouble was because of a bridge of agreement that MSLO signed with Macy’s.
2. Does Macy’s have the right resources and capabilities for their current strategy? Why or why
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not? Macy’s being one the two mid-level department stores has the right resources and capabilities for its current strategy. In response to the competitive threats Macy’s decided to adopt three major business strategy. These strategies were implemented to target either the store customers or online customers. Macy’s then invested in the omnichannel to facilitate the transaction between the stores and online orders. Macy’s was able to be successful in this strategy because most of their product is unique. Macy’s is known to carry exactly what the customers want and product that can’t be found elsewhere. Another big advantage Macy’s new strategy is to target the new Millennials. 3. Does MSLO have the right resources and capabilities for their current strategy? Why or why not? Even though MSLO is very popular in many industry such as paint collection, furniture, decor, and kitchen hardware, grooming supplies, and toys it doesn’t have the right resources and capabilities for their current strategy. MSLO has faced many challenges in the past years. MSLO has discontinued two of their publications and replaced them with a television program and a radio show. MSLO tried to expand their merchandise to offset the revenues loss in advertising, by signing an agreement with JC Penny in 2011. This led to a legal battle between Macy’s and MSLO which was very costly for MSLO. The future of MSLO remains uncertain because Martha Stewart will soon retired and this might affect the reputation of the company. 4. In the strategic alliance between Macy’s and MSLO, which company has the most power? What are the implications for their future dealings, given the power imbalance? Macy’s has the most power based on its new strategy and the result it has so far.
The M.O.M strategy implemented by Macy’s is by far more productive and has remains a differentiator and sustainable competitive advantage for Macy’s. Macy’s is always working in providing the best merchandise and best customer service nationwide. In order to stay on top Macy’s has to make sure that their product are unique and available for all customer. MSLO in the other hand has to work hard and rebuild his relationship with Macy’s and JC Penney for future contracts. With the current changes occurring in MSLO Company and the retirement of Martha Stewart, the company has to be more focus and keep up with the demand of its customers. There is still hope for MSLO one of the world's most recognizable
brands.
It is through following these statements that will bring a firm success in the future. However, external factors outside of a company’s control can negatively affect the expected targets and steer the company from their mission & vision. Most companies do not have direct influence on this kind of environment (Harrison & St. John, 2014). The following three sections will evaluate the external forces & trends for Dick’s Sporting Goods. The following also will elaborate on external factors from direct competitors that faces Dick’s Sporting Goods. I will conclude on what other threats Dick’s Sporting Goods can expect to see, and how they can place a buffer in between these factors to stay on track towards their mission &
Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
Martha Stewart made a kind of securities fraud known as "insider trading" which means using insider information to make a stock transaction. It is trading in the stock market, making improper use of inside information. This information, most of the time, is held by directors of listed companies and those who provide investment services or counseling.
Martha Stewart was charged with securities fraud, obstruction of justice, conspiracy, and civil charges. She had made false statements to F.B.I., SEC, and investors. She withhold information from these organizations about the selling of her stocks with in the company of ImClone. She was convicted and sentence to five months in prison, five months of house arrest, and a full two years of probation.
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
After co-branding the Macy’s name with local Federated stores in 2003, the Macy’s division became the central focus for revamping. Federated descri...
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
Facts of the Case: In 2008, Samantha Elauf applied for a job at Abercrombie & Fitch, Inc., who as part of their “Look Policy” prohibit the use of caps. Elauf, as part of her religious practice, wore a headscarf to the interview. She was interviewed by assistant manager Heather Cooke, who gave her a score that qualified her to be hired. Cooke, however, was worried that Elauf’s headscarf was against the store’s policy and called her district manager Randall Johnson. She informed Johnson of her belief that Elauf wore her headscarf because of her religion, and Johnson replied that headwear whether it was religious or not violated the “Look Policy” of the store. Elauf with the help of the EEOC sued Abercrombie on the grounds of religious discrimination. The U.S Equal Employment Opportunity Commission (EEOC) is an agency established by the government of the United States that imposes federal laws that make it
In 2002, CEO of Levi Strauss, Phil Marineau was faced with a tough decision: whether he should sell product at Wal-Mart. In the last five years, Levi-Strauss had lost sales and had to close US plants to move production to cheaper offshore areas. Levi's really needed to revive the brand image to gain back some lost sales and was using marketing to create new advertisements and product placement to broaden their target market. Levi's had tough competition on every level of the price-point spectrum, whether it be high end retailers like Diesel or Calvin Klein, middle vertically integrated retailers like Gap or American Eagles, and on the bottom, private-label brands like Wal-Mart and Target.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
The company 's stores under the Bloomingdale 's brand offer high-end customers an assortment of established brands such as Armani, Burberry, Christian Dior..." (Bailey, 2015). "Macy 's target consumers include Millennials (and) the company has launched several collections aimed at Millenials" (Bailey, 2015). Macy 's plans to shape its products according to customer 's ethnicity and race. The company plans to enter the Hispanic fashion market, as "Hispanics account for about 17% of the US population" (Bailey, 2015). Macy 's launched a strategy known as the My Macy 's strategy. Through the My Macy 's strategy the company styles products at each of its current stores to the needs of its customers. The My Macy’s localization strategy is a focus strategy used by Macy’s, Inc. Through this strategy the company targets specific consumers by tailoring its products and inventory to the customer’s needs. "It is a localization tactic which accelerates the sales of its stores" (Schoneberger, 2012). Analysts at Boston Consulting Group have advised that Millennials, individuals between the ages of 16 and 34, will account for $1.3 trillion in annual
The purpose of this memo is to show the affects of how Albertson’s is trying to implement many strategies in order to try, and compete with its powerhouse competitor Wal-Mart. This memo will contain information on steps Albertson’s is taking to gain back some of the market share that Wal-Mart has swallowed up. It will also describe Albertson’s planned innovations that will be what determines their success. Lastly it will discuss how through IT as well as a successful implementation of satisfying consumers demands, will possibly allow them to compete with the ever so powerful Wal-Mart.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
In week two, the assignment was to read about the company listed, and answer the questions provided. American Eagle Outfitters is a company that produces fashionable items for people in their teens, to mid-twenties. Their company offers a wide variety of products that range from personal accessories and clothes to fragrances. These goods sold by their company are considered to be of great quality for a reasonable price. Another interesting aspect of this company is that they create and promote their own products (Bethel University, 2011).