Jcpenney Strategic Analysis Essay

1728 Words Nov 28th, 2013 7 Pages
STRATEGIC ALTERNATIVES

In January 2012, newly appointed CEO, Ron Johnson introduced a plan to rebrand the department store chain into a 21st century retail powerhouse. Launching of the new J. C. Penney brand identity was set to occur over four years and would include a new logo, a new in-store experience featuring new and transformed brands, and most importantly, it would change the way that the company priced merchandise. Unfortunately, J. C. Penney suffered a 25% sales decline in the first year and Johnson was fired after only 17 months.
Historically, J. C. Penney’s strength had been communicating the relationship between quality and value, in a way that the customer could understand. J. C. Penney lost this connection when we
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This would mean repositioning a low-end bargain department store as a high-end, high-style store.
3. Revamping an old brand. Reconnect with the customer using the price and value perception that was lost during the rebranding initiative by reintroducing an updated version of the old pricing strategy.
BACKGROUND AND STATE OF INDUSTRY

Historically, the department store affected every facet of social and economic life in America. The rise of the department store from the mid-1850s to the end of the 19th century was a major revolution for business and society. It revolutionized the shopping experience and created an entirely new view of ordinary retail stores. Endless categories of items from jewelry and accessories to home goods and furniture were available to all customers under one roof. Department stores found success in the early years, because they were selling more than just “products.” They were selling an entire experience to the American consumer. Known for their low prices, convenience, experience, and variety, department stores emerged as the iconic establishments of their time. These stores became mainstream institutions in downtown areas. Some department stores, such as Filene’s, even had restaurants and tearooms located inside the building. They had services like photo studios and special events like fashion shows and parades. Macy’s Thanksgiving Day Parade is still a widely popular event today, originating in
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