Swot Analysis Of Penney. Penney Essay

1170 WordsOct 19, 20165 Pages
J.C. Penney is a company involved in operating retail stores across the United Sates and Puerto Rico. These stores sell a range of apparel, as well as home furnishings, accessories, foot wear, handbags, jewelry, and other products. In addition to products, J.C. Penney provides services such as salons, photography, custom decorating, and florists. Customers are able to shop and access the products and services in stores or online. In 2011, Ron Johnson was appointed CEO of J.C. Penney. Johnson entered the position and began to change J.C. Penney 's strategy which ultimately led to an annual sales drop of six billion dollars. Johnson’s new strategy involved eliminating J.C. Penney 's discount culture and began to refashion stores as collections of boutiques and higher end brands. He launched this new strategy and design without any advanced testing, which is a crucial step for changes in department stores. Johnson also removed store discounts and coupons. These changes led to the loss of many long time loyal customers. That is, Johnson and his new strategy miserably failed. The changes led to the firing of 40,000 employees, the closing of dozens of retail stores, and forced the company to sell valuable assets in order to build up cash reserves. By 2013, Johnson was fired as CEO, prompting J.C. Penney’s new management to spend the last few years reversing Johnson 's strategy (fortune.com). J.C. Penney 's approach to strategy is best measured using a SWOT analysis, which maps
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