Macy’s Inc. (Macy’s) has been around for quite some time and has established itself as a well-renowned brand worldwide. However, like any other organization, Macy’s is still impacted by the five forces of competition due to its performance in one of 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 and other retailers in the industry face the threat of substitute products through both internal and external industry competition. The threat of substitute products and services is a major concern for Macy’s, 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. operates in a very competitive industry. However, to compete, they have established very professional relationships with numerous suppliers, designers, and manufacturers to procure their wide selection of inventory. These good relations allow Macy’s to establish goodwill, credit, and reputation which are advantages over other corporations. These professional relationships 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 intensiveness of the rivalry among competitors in industries refers to the degree to which companies answer to aggressive moves of other businesses in the industry. 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 competitors moves of other firms Macy’s has re-positioned 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.