Question

Please create a SWOT matrix for Macy's [American department store chain] (10 Strengths, 10 Weakness, 10 opportunities, 10 Threats)?

Answer 1

Strengths of Macy's

Good returns on capital spending–Macy's is comparatively effective in implementing new projects and generating excellent returns on capital spending by constructing new income streams.
Strong dealer community–It has constructed up a culture among distributors and retailers where the distributors not only encourage the goods of the company but also invest in training the sales team to explain to the client how to obtain the maximum advantages from the goods.
High level of client satisfaction–the firm has achieved a high level of client satisfaction among current clients and excellent brand equity among prospective clients with its devoted client relationship management department.

Activity automation introduced quality consistency to Macy's products and made it possible for the business to scale up and down depending on market demand circumstances.
Reliable suppliers–It has a powerful base of reliable raw material provider that allows the business to overcome any bottlenecks in the supply chain.
Strong Free Cash Flow–Macy's has powerful free cash flows providing the company's funds to grow into new initiatives.
Strong portfolio of brands–Macy's has invested in creating a powerful portfolio of brands over the years. Macy's SWOT analysis just highlights this fact. If the organisation wishes to grow I this brand portfolio can be highly helpful

Successful track record of mergers & acquisitions integration of complimentary companies. Over the previous few years, it has effectively incorporated numerous technology firms to streamline its activities and create a secure supply chain.

Weakness of Macy's

Need more fresh technology investment. Given the scale of development and various geographies that the business plans to grow into, Macy requires to put more cash into technology to incorporate procedures across the board. Right now, technology investment is not in line with the company's vision.
Limited success outside the key company–Although Macy's is one of the major companies in its sector, with its current culture it has experienced difficulties in shifting to other product sections

Product advertising left much to be desired. Although the product is a sales success, its placement and distinctive selling proposal is not obviously described, which can lead to the competitors ' assaults in this section.
Research and Development investment is below the industry's fastest increasing players. Although Macy's spends on research and development above the industry average, it was not able to compete with the industry's major players in terms of innovation. It has emerged as a mature company looking forward to producing goods based on market characteristics that have been tested.

Not very successful in incorporating companies with distinct job culture. As stated previously, while Macy's is effective in incorporating tiny businesses, it has its share of inability to merge businesses with distinct job culture.
There are gaps in the company's selling product spectrum. This absence of decision can offer a foothold in the industry to a fresh competitor.
The structure of the organization is consistent only with the current company model, thus restricting development in neighboring product sections.

Opportunities for Macy's

Reducing transport costs due to reduced shipping rates can also reduce the costs of Macy's products, giving the company the chance to either increase its profitability or pass on the advantages to clients in order to gain market share.
Government green drive also provides an chance for both state and federal government contractors to procure Macy's products.
Stable free cash flow offers possibilities for investment in neighboring sections of products. The business can invest in fresh techniques as well as in fresh product sections with more money in the bank. In other product categories, this should open a window of chance for Macy's.

Lower inflation rate–The low inflation rate brings more market stability, allowing Macy's clients to borrow at reduced interest rates.
The core competencies of the organization can be a success in comparable field of other products. A comparative instance might be-GE healthcare study has helped it develop better machines for oil drilling.
The new tax policy can have a major effect on the manner business is done and can open up fresh opportunities for established players like Macy's to boost their profitability.

New consumer behavior developments can enter the Macy's new market. It offers the organisation with a excellent chance to create fresh income streams and also diversify into fresh categories of products.
New policies on the environment–The fresh possibilities will generate a level playing field for all industry players. It is a excellent chance for Macy's to drive home its fresh technology benefit and gain market share in the new category of products.

Threats Macy's Facing

In the medium to long term, new techniques created by the rival or market disrupter could pose a severe risk to the sector.
Imitation of the falsified and low-quality product is also a danger to Macy's product, particularly in emerging markets and low-income economies.
No periodic supply of innovative goods–countless products have been created by the business over the years, but these are often responsive to other players ' growth. Secondly, there is no periodic supply of fresh products resulting in elevated and low swings in the amount of sales over time.

Changing customer purchasing conduct from the internet channel could threaten the current supply chain model driven by physical infrastructure.
Increasing pay levels, particularly movements such as $15 per hour and rising prices in China can lead to severe pressure on Macy's profitability As the business operates in various nations, it is subjected to currency changes, particularly given the volatile political climate in countless markets worldwide.

New environmental regulations could pose a danger to certain current product classifications under the Paris Agreement (2016). Increasing trend towards isolationism in the American economy may result in comparable reactions from other government impacting global sales negatively.

Limitations of SWOT Analysis for Macy's

Some of an organization's capacities or factors can be both strength and weakness simultaneously. This is one of SWOT's significant constraints. For example, changing environmental regulations can be both a threat to the company, it can also be an opportunity in a sense that it will allow the company to compete in a level playing field or benefit if it is able to develop the products faster than the competitors.
SWOT doesn't show how a competitive advantage can be achieved, so it shouldn't be an end in itself.

The matrix is just a starting point for a debate on how to implement suggested policies. It given an evaluation window but not an execution schedule based on Macy's SWOT's strategic competitiveness is a static evaluation-status quo analysis with few forward-looking modifications. The dynamics of a competitive setting may not be disclosed in a single matrix as conditions, capacities, threats, and policies alter.

SWOT assessment may guide the company in formulating policies to overemphasize a single inner or external factor. Among the main inner and external variables, there are interrelationships that SWOT does not disclose that may be crucial in strategic development.