JCPenney
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This was a group project of the JCPenney Company and shows the breaking down of their strategies financially, economically, competitively, etc. These strategies define their operations and its ups and downs throughout the companyโs history. This ppt. was made as a visual aid for our presentation back in the Fall of 2012.
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JCPenney
- 1. Ashley Kitchens, Dimisha Rodgers, Zach Owens November 26, 2012
- 2. Overview History Industry Overview Current Business Plan Major Competitors and Competitive Rankings Current Competitive and Firm Financial Performance Environmental Factors SWOT Major Competitive Issues Recommendations and Results Risks
- 3. James Cash Penney CEO Ron Johnson Established 1902 1915 1920โs 2012 83 647 1102
- 6. GOAL: To Be "America's Favorite Storeโ Price Strategy Shops Strategy
- 7. Major Competitors and Competitive Rankings Current Competitive and Firm Financial Performance Environmental Factors
- 8. Competition
- 10. Industry & Firm Performance โข โข โข โข HSN โข JCPenney โข Macyโs โข Sears
- 11. Industry & Firm Performance โข โข โข โข
- 12. Industry & Firm Performance ROE 2005 = 9.76% 2006 = 8.23% 2007 = 9.83% 2008 = 11.96% 2009 = 12.78% 2010 = 17.58% 2011 = 12.99% 2012 10.65%
- 13. General and Specific Environmental Factors Segment/Trends and Events Positive Neutral Negative Demographic Aging Population X Changes in Ethnic Composition X Greater disparities in income levels X Sociocultural More women in the workforce X Postponements of family formation X Political/Legal Increases in Federally mandated X Minimum wages Technological Emergence of Internet technology X Miniaturization of computing X technologies Economic Unemployment Rates X Consumer Price Index X Interest rates X Global Increasing global trade X Emergence of the Indian and X Chinese economies
- 14. SWOT Major Competitive Issues Recommendations and Results Risks
- 15. SWOT Analysis of JCPenney Strengths: Long History Brand Recognition Established Locations Nationwide Exclusive Popular Brand Names Weaknesses: Decline in comparable store sales Decrease in popularity Changing business strategies Lack of coupons
- 16. SWOT Analysis of JCPenney Opportunities: Internet Sales Exploring Niche Markets (Maternity or Big&Tall) Attracting New Customers Complete overhaul of marketing strategies Launching new exclusive private label brands Threats: Rising Labor Costs in the U.S. Increasing competition in industry Internet-customers comparing prices Weak consumer spending
- 17. Major Competitive Issues โข Changing of brand image โข Selling Strategy โข Marketing Strategy โข Environmental Factors: Aging Population, Women in the Workplace, Unemployment Rates, Interest Rates, and Minimum Wages.
- 18. Strategic Recommendations and Results โข Explore niche markets, for example, Big&Tall and Maternity โข Move more aggressively into online sales โข Allow customers to use coupons again โข Launch new exclusive and private label brands โข Fire the CEO if sales continue to decrease
- 19. Risks Associated with Recommendations โข Implementing new strategies could result in more confusion for customers which could lead to a further decrease in sales. โข If reaching out to a niche market, JCPenney could suffer financially if it doesnโt work. โข A change in management would cost the company a considerable amount of time and money.
- 20. Questions?
Editor's Notes
- JCPenny was founded in 1902 by James Cash Penney and William McManus. At the bottom you can see how the department stores grew. The Current CEO of JCPenny is Ron Johnson.1962- entered catalog service1981- Moved away from auto & appliances and focused more on clothing and home.Today sales are dropping because of the abandonment of key customers.
- The department store business is very competitive. Onforbes Global 2000 list, Macyโs is the department store industry leader, ranking in number 405, than followed by TJX at 546.From the list you can tell that consumers are taking advantage of discount stores like TJ Max and loyalty stores like Kholโs. JCPenneyโs changes has moved them down the list. http://www.forbes.com/global2000/#p_1_s_a0_Department%20Stores_United%20States_All%20states_
- Picture from: http://blogs.roanoke.com/storefront/files/2012/10/jcp-Womens-2.jpg
- Goal: to become โAmerica's Favorite Storeโ. With using their new price and shops strategy to help. They are focused on price and the younger market. The pricing strategy was created by the CEO and is called โFair and Squareโ.The strategy JCPenney has in campuses their vision: โOn every visit, customers will discover great prices every day in a unique Shops environment that features exceptionally curated merchandise, a dynamic presentation and unmatched customer service
- Chart shows the return to its Investors over 5 year periodJCP = (-36.91 %) HSN (+183.6%) Sears(-43.19%)
- Chart shows track of overall sales since 2007 and predictions for future sales
- 4 major strengths. Weakness: decrease in popularity among competitors such as Kohlโs and Macyโs. Business Strategies leave customers confused. Lack of coupons leads to a lack of loyalty.
- Internet Sales-Marketing and Selling Products Online. Niche Markets abandoned by other retailers. Become โAmericaโs Store.โ Internet-allowing customers to compare products to find lowest price.
- Environmental Factors-Many more โBaby Boomersโ, more women in the workplace, and unemployment is high. If interest rates increase, it may deter customers from shopping, and if minimum wages increase, they may be forced to lay off workers, or their costs will increase.
- By catering to a more focused group, JCPenneyโs sales may increase as well as customer loyalty. Marketing and Selling more products online.
- A change in management may not lead to an increase in sales.