Macy’s Inc. (Macy’s) is an older retail company and has been around for over 20 years. They have established a well-renowned brand worldwide for itself. However, like other organization, Macy’s is still affected by the five forces of competition due to its performance in the most competitive industries. The five (5) forces of competition are (1) threaten of novel entrants, (2) engagement divinity of suppliers, (3) stipulation government of buyers, (4) the threaten of substitute products, and (5) intensity of emulation among competitors (Hitt, 2013, pg. 51). When considering these five forces, the two that are the most significant for Macy’s is the threat of substitute products and intensity of rivalry among competitors. This two vital forces, force corporations such as Macy’s to lower their prices in an endeavor to extend intuit value for their customers. All firms and manufacturers contend with other industries offering substitute products. Macy’s along with other retailers in the industry feel the threat of substitute products through both internal and external industry competition (RapidBI, 2012). A major concern for Macy’s is the threat of substitute products and services, especially with discounters such as Target offering similar products, and large chains that specialize in clothes such as H. Macy’s goal is to continue to maintain the lowest prices possible for their consumers. Macy’s Inc. conducts business in a very competitive market. Macy’s has established professional relationships with various suppliers, designers, and manufacturers in order to compete in the retail market. Through this venture, Macy’s procures a wide selection of inventory for their stores. With excellent relationships, Macy’s has established goodwill, credit, and reputation with outside manufactures which are advantages they have over other corporations. These professional associations allow Macy’s to be a well-eminent company who can receive their inventory at a buy rate to offer these products to the public at a discounted charge from the suggested retail price. Not only does Macy’s offer its high-quality products, but name brand products available in large quantities to satisfy the customers’ demand, but it also affords great customer service and other services such as their shopper service. Macy’s also uses a highly effective marketing tactics to support its products and advance sales which include the use of active advertising campaigns.The intenseness of the rivalry among competitors in industries refers to the degree to which companies answer to aggressive moves of other businesses in the industry (Cleverism,2014). The significant amount of competitors within the same sector is bound to increase or thicken the rivalry between competitors. Because of this, it is severe for Macy’s to remain watchful of their competitors’ actions at all times and respond to them when considered necessary. To respond to competitory moves of other firms Macy’s has repositioned its industry segment. Macy’s has decided to change their tactics; they will be more genteel and deliver fashion at a lower price. Also, Macy’s will deviate from their traditional brand to focus on attracting customers interested in style rather than customers in a particular demographic.