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Johnson's Cost-Leadership Strategy: J. C. Penney

194 Words1 Pages
Johnson used the cost-leadership strategy while he was CEO of J.C. Penney. One of the major strategies he implemented was the lowering of prices by 40 percent. By doing this not only did Penney provide an acceptable product that had the same quality but the products are also at a lower price. Johnson’s strategy of have a select number of products on sale for a month and having clearance sales monthly attracts customers that are looking for a bargain. This can attract a large number of returning customers and new customers. Johnson’s strategy of reducing the number of product lines also appeals to a large number of customers. This is also a part of the cost-leadership strategy. By Penney concentrating on a fewer number of products they are
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