Lancer Gallery Case Study Essay

profitability, slowing demand growth and a surge in private label sales threatened to undermine the

Together the two heads of JCPenney (JCP) originated from successful corporations and are currently fuelling such achievements into JCPenney. JCP’s restructurment occurred in February 2012 and has changed the assessing arrangement inside the store. The store has been imparted a new style with changes in marketing, rating, store location and administration. All of these variations have been developed to improve the company’s performance.

In a hurry to bring new products they are forced to sell off old products at discount. They are in a way cannibalizing their own products.

Increasing competition from Scrambled merchandising from Canadian tire & dollar store chains. Increasing competition is putting a pressure on profit margins as well.

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

b. Lancers merchandise was limited before the contract, but now with mass production through the department store they will be able to fully compete with competitors in the market. The company would no longer have to worry about the scarcity of authentic artifacts because they would be mass producing.

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.

‘We aim to return the UK High Street Retail business to its role as Britain's most popular stationer, bookseller and newsagent … Our plans encompass improved efficiency through cost savings and margin enhancement, while rebuilding the competitiveness and depth of our product ranges.' (Ms Swann BBC, July 2005)

Being acquainted with a mass merchandiser could ruin the company’s image so loyal customers who frequently purchase Fe’nix’s items may start searching for artifacts that are imported through dealers that only sell “authentic” pieces

Local partners could help IKEA to understand better the customer’s behaviors in the host market. The psychic distance would be reduced and consequently IKEA could adapt its products, its stores layout following its local partner advices. Traditionally IKEA used to push Swedish design into the new markets without considering the local needs. If they could find a local joint venture understanding well the local needs they could provide more suitable products.

Every company has their own theory and goals behind what they overall want to see or become. This paper is written with intent to help better understand a real life situation that took place at Guitarras Dominquez. When a company first opens their doors for business, they use high end material to show the essence of quality in their product which will allow for growth in their customer base. Do you ever wonder how a company gets far in doing so? Intention from the start of a business does not include cutting corners and saving money, but eventually with budget cuts and business plans they tend to become necessary.

The last alternative could be to create a better marketing about their products, to compare their brand with the competition so the market can understand that the differences between prices is because of the good quality, the brand name, the knowledge, and that they are the only ones, the expert ones on those kind of products.

The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the

The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of the cost for the most part. However, in the declining market for the department store industry, Macy’s consolidated stores, established a national department store and continues to make a steady profit. It is usually the time to divest, sale,