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. …show more content…
1), “Company strategies aimed at controlling costs include construction of efficient-scale facilities, tight control of costs and overhead, avoidance of marginal customer accounts, minimization of operating expenses, reduction on input costs, tight control of labor costs, and lower distribution costs.” This is the perfect example of what Ron Johnson was trying to accomplish with J.C. Penney. By keeping the prices lower than the competition, they could attract more customers to shop within the stores. The sales that J.C. Penney advertises brings more of a customer base in to browse through the store, and it usually leads to a purchase of at least one item that is marked and discounted down from the much higher, regular