The Factors in the External Environment that could affect the Success of Macy’s new Strategy
One of the negative factors external factors that might affect the success of Macy’s new strategy relates to the economy. In this light, the amount of sales depends on the population's wealth. At the very least, the ability of the population to borrow money to make purchases is an element that can affect the company. In this light, when the economic conditions are bleak, the company will have to adjust their strategy, which would include the implementation of cost-cutting measures as well as price reductions to ensure that the sales volumes remain high (Cherunilam, 2010). However, the external environment presents the organization with the opportunity to implement its online marketing strategy positively. In this case, the firm is likely to benefit by staying updated on the emerging technology trends to implement its online strategy, which is a provision that might promote the success of Macy's new strategy.
The Success or Failure of Macy’s new strategy regarding Online Marketing
While traditional department stores are struggling to be relevant in the digital age, it is possible to determine that Macy’s is one of the players in the industry that is succeeding in the implementation of the online marketing strategy. The success of the strategy is attached to the provision that the organization focuses primarily on the youth, the strategy is socially oriented, and it has embraced multichannel marketing. For instance, in the year 2013 Macy’s was the first retailer in its industry to collaborate with Apple during the launch of iTunes (Birkner, 2013). In addition to other campaigns conducted on different online platforms, it would be possible to posit that the company has succeeded in its online campaigns.
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Elements in the External Environment that could affect Dippin' Dots' Strategy concerning their Growth
Changes in the industry forced Dippin' Dots to widen their target market to cater to young adults and the older generations. In this light, one of the most important elements in the external environment that might affect the successful implementation of the strategy is the socio-cultural provision. According to Ireland, Hoskisson and Hitt (2008), the socio-cultural trends in society focus on the changes in society's attitudes as well as cultural values. Initially, the products that the company developed catered for the needs of children and teenagers. However, to ensure that they cover the needs of the individuals older than teenagers, the company had to develop different products that would take care of the needs of this segment of the market. The socio-cultural environment is an external factor that can affect the successful implementation of a particular strategy, which is a provision that calls for the need to embrace innovation.
Technological factors also affect the successful implementation of a company’s strategy (Cherunilam, 2010). The company embraced flash freezing through a technology developed by a microbiologist. The concept used was flash freezing, which involved using liquid nitrogen to freeze the ice and collect bead for the production of unique flavor, texture, as well as shape. The evolution of technology has significantly assisted the company in implementing its strategy, particularly concerning the development of novel ways through which it can make different types of ice creams, frozen yogurt, and desserts, among others. To ensure that their products were uniquely positioned in the market, it was vital for the company to patent their innovations, which is a factor that has enabled to company to achieve competitive advantage and remain competitive in the market.
References
Birkner, C. (2013). Five External Trends / Factors That Can Affect Your Strategy Execution . Retrieved from https://www.sixdisciplines.com/thesixdisciplinesblog/five-external-trends-and-factors-that-can-affect-your-strategy
Cherunilam, F. (2010). Elements of the business environment . Mumbai, India: Himalaya Pub. House.
Ireland, R. D. Hoskisson, R. E., & Hitt, M. A. (2008). Understanding Business Strategy: Concepts and Cases . Cengage Learning.
