Strategic management is a very accurate measure for the good performance of operations and short and long term success of any particular company. According to the effectiveness of the main issues that strategic management such as cost leadership, differentiation, and focus, we can predict and analyze the foundation that the company builds in the market.
Macy’s being one of the biggest retail department stores in the U.S demonstrates the big benefit of having strategic management as one of the most powerful tools in the functioning of the business. For example, this department store differentiates from other department stores because they have positioned its cost leadership within the industry on the minds of its loyal customers. Their prices range and market every single need of customers. We can clearly find high, medium, and low prices that market each customer in this specific industry. It has reached an competitive advantage among other department stores because it does not only provides variety of prices depending the income of its clients but also offers quality that people perceived and this is equal to loyalty. I also think that the best strategic management tool that Macy’s has is their strength in marketing, this basic but important tool has taking them to be one of the biggest department store.
Then we have Target that also proves the point that cost leadership plays an important role in its functioning. This company has positioned their prices in a way that offer not only the benefit of acquiring inexpensive products but also quality that customers of every social class look for. For them their strategy has to do with the trend of the current market such as propaganda and fashion designers that call the attention of the customers in the marker.
Finally, we have Marshall’s; another big department store that have use this special management tool to call the attention of customers that are looking for low pricing without forgetting the fact of quality and name branding. They do not have a strong marketing campaign but word of mouth has taking them to position in the market of department stores in a high range and has helped them to focus in this specific market segment.
Clear cost leadership, differentiation, and focus are very reliable to measure the performance of management practices that successful companies like the ones mentioned above have acquired to become successful in the retail department industry.
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5 comments:
I think the target example was very good, especially since everyone loves to shop there =]
I think Target was able to present themselves as an unique department store as compare to store that sell similar items like K-Mark. For example, their marketing strategy was a good way to differential their own brand, Target with red circles logo. Even thought Target and K-Mark were both targeting at similar customer segment but Target was able to differential itself as being unique through their commercial and marketing strategy.
Macy's is positioned as a cost leader with in it segment. Good quality fashion at a reasonable cost. As opposed to Nordstrom Barneys and other they do offer very low cost.
Target as well
I really liked the example with Macy's. I was thinking about presenting Macy's as one of my cases. I agree that you can find everything in there, product wise and price wise.
Plus, I always get coupons in the mail that makes me want to visit it again.
To CMT CORP,
Why Macy's is cost leadership within its segment? They sell items at the same price as Saks Fifth,bloomingdales,or other upscale department store. Hopefully, we can buy same stuff cheaper at Macy's...
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