May Department Stores International Incorporated (MDSI)

• Main Authors: Mercado, Mary, Sia, Florence G.
• Format: text
• Language: English
• Published: Animo Repository 1992
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16938
• Institution: De La Salle University

In 1888, David May opened the ist Denver department store under the name of The May Company. Years later, David May together with his partners acquired more and more department stores under the same name. In 1910 these stores were incorporated under the name of MAY DEPARTMENT STORES INTERNATIONAL INC. A year after incorporation, the company was listed on the New York Stock Exchange. At present, May Department Stores Int'l Inc. still continues to acquire more department stores naming it after The May Company or the desired name. MDSI is an American company engaged in importing consumer goods from different countries to be sold in prestigious American department stores. It is also engaged in the international trade with affiliates or branch offices in the Asia-Pacific Region. The Company's product lines consists of softlines and hardlines. Softlines includes departments such as children's, intimate apparel, young men's and ladies, and adult men's and ladies. On the other hand, hardlines mainly includes various kinds of home decors. Since the company's department stores are located at the United States, it only serves the American market. Among the department stores, only Lord and Taylor caters particularly to the ist class American market. Other stores cater to the upper and middle classes, depending on the image of the company. With reference to the competitors of MDSI, the company considers RH Macy, Associated Merchandising Company, Southgate, JC Penny, other department stores, discount stores and specialty stores as its external competitors. These companies are their competitors in the United States. In the Philippines, competition happen only if they have the same vendor, same style under same quota category, same shipment period and same production period. On the other hand, the company consider its other buying offices as its internal competitors. They compete in terms of order placements from their head office in New York. Although the students were assigned in different departments, they worked on the same division and performed basically the same function as an Assistant Market Representative. Their primary duty is to assist Market Representative or Senior Market Representative in her daily tasks of executing order placements. The group conducted a SWOT analysis on MDSI. Basically, the strengths of the company are loyalty of employees, efficient cost-cutting, company's reputation and image, and financial stability. Weaknesses of the company includes limited budget, and lack of promotion and career plan. On the other hand, external opportunities includes untapped markets, better economy in United States, and favorable change of economic condition in the Philippines. Political and economic uncertainties which includes economic instability such as brown-outs, strikes, change in market condition and high labor costs, shipment delays, and internal competitors are the threats that hound not only MDSI but all buying offices as well. Meanwhile, like any other buying offices, MDSI has its own set of problems. Based on the students observation, the perceived marketing problems of the company are as follows: lack of promotion, distribution, limited market scope, and lack of budget which has resulted to lack of manpower and, thus, creating a chain of negative effects. Based on the SWOT analysis and the problem analysis conducted by the group, it is very evident that MDSI contributes a lot in the development of the export merchandising and as well as the economy of the Philippines by bringing in dollars and employment. It is therefore recommended that it continues its services to its head office and to the Filipino people by improving its weaknesses and overcoming its problems.