The J. C. Penney New Business Model

HISTORY : In 1902, James Cash Penney, in partnership with two other associates, opened the Golden Rule Store in Kemmerer, Wyoming. At the time it was uncommon to charge the same price to each and every customer; however, Penney preached the slogan "one price charged to all," regardless of customers' social status. After buying out his partners (in 1907), Mr. Penney opened two more stores. At present, J.C. Penney has more then 1400 department stores in the United States, Puerto Rico and Mexico, making it one of the largest retailers in the world.

Trader Joe 's sells gourmet foods to its customers with a low cost business model, which may seem very difficult to maintain, due to the rising costs in the international markets and the United States. However, with Trader Joe 's long term experience in operations and limited variety of products, this enables the company to reduce costs and transfer those savings to their customers. Furthermore, Trader Joe’s has a very efficient management process that allows keeping the product costs down to keep their customers satisfied. The management process is very significant for Trader Joe 's in which they have planned marvelously to carry certain products which is obtained at a discounted price from their suppliers. Additionally, Trader Joe’s keep costs down to a minimum by choosing non-prime store locations. For

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

J.C. Penney is a retail outlet that operates in many locations globally. It deals with product lines such as clothing, footwear, beauty products, electronics, and jewelry. There are several changes that have taken place in the macro environment that promises to increase the fortunes of the company. The advertisement in technology is one single important factor that has increased the performance of the business (Ali, 2007). The company has an elaborate website through which it uses to tap the online market. In fact, thirty percent of the company’s revenue comes from the website.

J.C. Penney’s used the linking strategy of having thousands of seemingly unrelated web sites that would link to the J.C. Penney website. Most of those links had really descriptive word choice, meaning if you wanted to look up furniture, casual dresses, phone cases, etc. they would all be linked to J.C. Penney’s. It was almost like someone had arranged for all of those sites to go to J.C. Penney’s website, and would help them out even more by making them be in the top five websites that pop up on google searches. They are ranked so high because when people look something up that J.C. Penney supplies or even has something close to it, their name will pop up because they have all those keywords connecting to their

Chief Executive Ron Johnson strongly focused JC Penney around the differentiation strategy. He discontinued many different brands that have been carried for years in order to deliver more of the JCPenney brands. The new JCPenney brand prices were higher and there were little to no sales on these clothes. With coupons being distinct, customers wanted better prices on their clothing. The “usual” customers were used to markdowns and clearance sales which became few to none.The customers were also used to the catalog so they could do a lot of ordering from home.The catalog was seen as useless and a high dollar promotion so this promotion was also taken away.Mr. Johnson wanted to see the business build a better profit because they were beginning

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.

J. C. Penney Corporation, Inc, also known as JCPenney, is a chain of American department stores specializing in selling affordable clothing, shoes, accessories, and home decor for the entire family. For more than a century, JCPenney has been a regular shopping destination and a dependable retailer for the American family. In 1902, the department store was founded by James Cash Penney and was established on the principle of the Golden Rule. Over the years, the company has developed a strong reputation for putting its customers first and servicing everyday needs. From its incorporation in 1924 until 2010, JCPenney experienced large levels of growth and success. JCPenney’s Corporate address is 6501 Legacy Dr, Plano, TX

The objective of the fair and square strategy was to simplify JC Penney’s pricing structure by dropping the current high-low pricing strategy and changing it for an “every day low price” strategy. In theory, this would make pricing simple both for JC Penney and the consumer, with less sales and promotions and the associated costs.

In the past, JCP had, on average, one price campaign every day. The stores were full of sale signs and retail rise was getting out of control. JCP partnered with numerous exclusive collaborations which was hoped to bring about an expansion for the firm. However, due to the economic slump, the oversaturation of the market, and an expected lack of quality in the goods from the consumer perspective, JCPenney’s success was degrading in contrast to its competitors. (Sloan, 2010).

JC Penney had to undergo and withstand several competitive issues to include changing of brand image, selling strategy and marketing strategy. JC Penney also had to account for Environmental Factors to include: a population that continued to age and also unemployment rates. JC Penney tried to influence customers by portraying an everlasting sale. No matter how hard JC Penney tried to market their products, if people didn’t

Chief elements of Costco’s strategy were low prices, limited selection, and a treasure-hunt shopping environment. The ultra-low pricing strategy includes a mark-up capped at 14% and Kirkland, a Costco brand designed to be of equal or better quality than national brands. Product Selection is limited to 4,000 items within a wide variety of categories. Costco does however include ancillary businesses to increase member alternatives. The loss of sales from customers who refuse to purchase large amounts is considered “Intelligent loss of sales.” Treasure-Hunt Merchandising consists of a constantly changing selection of 1,000 luxury items on the floor enticing shoppers to spend more than

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

Their affiliates are offered a controlled assortment of nationwide brand-names in addition to choosing private label goods in a widespread of commodities. Costco merges its fast inventory revenue with the functioning competences to track the business lucratively at a substantial lower gross margin. Moreover, Costco gains benefits of its great sales capacity and fast inventory turnover to gain the advantages of timely sum rebates from merchandise wholesalers due to the extraordinary deals and fast inventory turnover. This allows Costco to produce an abundant of cash in their account. The pricing strategy of Costco is the central factor that reinforce the low price business strategy which is to improve the limitations on brand-named merchandise which is at 14%. Which allows their members to bargain at such a low value. Costco has the prominent status amongst consumers as the number one merchant of mutable merchandise and low prices. Costco's economical benefit is positioned upon its aptitude to purchase in massive wholesale, consolidate, and sell in its

JC Penney is not as large as some of its competitors, many of which have more substantial resources and are constantly attacking their market share. The company also faces threats from economic conditions, such as high unemployment and the recent recession. When consumers are under financial pressures can easily decide to shop elsewhere, such as Kohl’s, Target, and even the dreaded Walmart. Even the perception of better value can drive consumers elsewhere.