J. C. Penney's Effective Strategy
After making several calculations on both Kohl’s and JCPenny’s finical statements it is clear that Kohl’s is in a better financial position. Starting with over an 8-point gap between Kohl’s 3.50 net profit margin, to JCPenny’s -4.06 net profit margin. This proves that Kohl’s is more profitable making 3.50 dollars of income for every item sold, on average. Kohl’s is the better company to invest in but JCPenney is slowly pulling themselves out of a financial crisis. According to Investopedia, “Kohls is opening a new outlet store it calls Off-Aisles… if this concept works, which it likely will, considering consumer conditions, look for Kohl’s to ramp it up, big time.
The JC Penney Company is a united states based company and is among the leading companies in the apparel and home furnishings especially in the retail sector. The JC Penney Company is dedicated to fitting the American diversity with quality, value and unpatrolled style. JC Penney has opened up many stalls throughout the country where they offer different products with a wide range of sizes, fits, shapes, occasions, budgets among other considerations. For a very long time JC Penney has been raising in the market until the recent past when it seemed to be making the wrong decisions.it was among the largest American mid-range store. They have been very successful with the expansion of their stores all over the region and even with their expansion
JC Penney also needs to focus on its opportunities in order to maintain or increase the competitive advantage. While looking at the opportunities to explore in this organization needs to study the inherent business practices and structures. Opportunities in this case can be linked with the human resource management procurement, firm infrastructure, technology and the primary activities of inbound logistics, operations, outbound logistics, service, sales and marketing. The company has the advantage of offering better value for their money. This company has the opportunity of applying aggressive sales and marketing that will help the company achieve its goals.
Comparing J.C. Penney and Kohl's J.C. Penney is an American retail chain store that has been in operation for more than a century. The company's history dates back to 1902, when its founder, the late James Cash Penney, opened a single dry goods store in the city of Kemmerer, Wyoming. J.C. Penney came up with the idea of providing affordable apparel for middle-class people as well as the working class, which shot his humble business to a precedent setting in the shopping industry. J.C. Penney’s rapid economic growth contrasted with the destruction created by the Great Depression, which led to the destruction of many firms. Nonetheless, Penney calculated the timing of the launch of new store openings during the recession in order to
Based on the Threat of New Entrants completive forces J. C. Penney implemented lowering their prices by 40 percent. By doing this Penney is trying to discourage others that department stores from opening. Based on the bargaining power of supplies, Penney decided to reduce the number of private label products and only have a few key products. By doing this Penney is reducing the number of suppliers they must have contact with. Based on the bargaining power of buyers Penney will have select products on sale for a month.
Therefore, in order to deal with the situation, Johnson decided to restructure the company. The main change was switching the pricing strategy they were using. From High-low pricing strategy (HLP) to a "Fair and Square" pricing strategy, or in other words, an Everyday-low-price strategy (EDLP) which represented a huge change for the company. This pricing plan included several stages and united both pricing methods, such as decreasing prices, represented by EDLP, appointing
Women had shopped at Penney’s for generations, drawn to their reputation for combining quality products with great discounts through clearance, coupons, and sales. Although Penney’s has tried to forget the drastic policies of Johnson, customers that fled due to his changes have been slow to
Ron Johnson CEO of J. C. Penney Co. seemed to have aligned himself and a cost- leadership strategy. The original plan was to have everyday low prices and sales on specified days of the month. Johnson wanted every product to have three different prices. Each product would have a low everyday price, a month long low price and a prices for twice monthly sales (Jones & Kramer,2014). Johnson’s cost leadership strategy did not pertain to his spending it seems with high cost of weekly travel, launch parties, corporate spending and the cost of retooling each store.
I. J. C. Penney started as a strong company in 1902. It began to grow not to long after opening its first store in Wyoming. Over the next hundred years, the store expanded to over 2000 stores with 41 million square feet of retail space making J. C. Penney one of the largest chains of department stores in the United States. A. James Cash Penney was the founder of J. C. Penney and even named the company after himself. The “Golden Rule” was his philosophy for his first store and for the entire company.
I think the Cost-Leadership Strategy (Kinicki & Williams, 2013) is the competitive strategy that Ron Johnson embraced while under his new leadership at J.C. Penney. I think this because J.C. Penney is a well known company throughout the United States, and their sales are mostly based on their merchandise and products that are sold at clearance or discounted prices. According to Kinicki and Williams (2013) “the cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.” This helps to enforce sales for J.C. Penney by making the cost of their product to the customer lower and more affordable, while the quality of the merchandise they sell stays the same or increases in its standard of excellence.
Introduction J.C. Penney Company, founded by James Cash Penney, is one of the largest clothing and home furnishing stores in the United States with its headquarters in Plano, Texas. On April 14th, 1902, in the town of Kemmerer, Wyoming, Penney and two other partners opened up the Golden Rule dry-goods store. In 1913, with over 34 stores, the company was incorporated as J.C. Penney Company, Inc. and transitioned its headquarters to New York City. By 1929, the company was listed on the New York Stock Exchange. According to their 2013 Sustainability Report, there are 117,000 employees at the JCPenney headquarters.
This shows that when more families continued to struggle through the recession, they switched to Walmart, feeling they could get more value out of their money. While Target claims they have similar products to Walmart as the same price, the first instinct for individuals is usually to think about how Walmart is known for their good value. Target claimed that it started cutting prices to match Walmart on products that were available from both stores. For many individuals, this is something that could have been unknown. The upscale approach that Target takes in their business model clouds the judgment of the value they could be getting at
Plans for starting up some new locations, such as the two stores in Washington D.C., have been revoked. Many Americans fail to realize that the increase in the minimum wage is not the only factor that is causing the decrease in Wal-Mart’s profitability. As Wal-Mart is facing these cuts in the number of stores, it is also competing with other companies, like Amazon (Puzder). As online retailers are becoming more convenient for shoppers, saving customers the hassle of driving to and from the store, the amount of purchases made at stores, such as Wal-Mart, has also declined. Pressure from the increase in minimum wage (and outside competition) may prove to be more detrimental than beneficial to the employees of huge retailers, whose profits were already made on the
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
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