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4 SWOT Analysis In order to better understand JCPenney and its future, it is vital to take a closer look at the internal and external factors that affect the company. By identifying JCPenney’s strengths, weaknesses, opportunities, and threats, a strategy can then be created that will distinguish JCPenney from its competitors. Hopefully this analysis will provide insight into JCPenney’s falling sales and help establish goals for a turnaround. 4.1 Strengths Even though JCPenney has been dropping in sales, they still have a number of strengths that may help the company survive. For one, Mike Ullman, a former JCPenney’s CEO, is back in his previous position. After being gone for two years, Ullman replaced Ron Johnson as CEO on April 8, 2014 …show more content…
They also have a strong supply chain: well diversified suppliers, compelling brands, point-of-sale technology, and effective cost and inventory management (Zacks Equity Research, 2012). Their improved website functionally, JCP Rewards program, and in-store Sephora departments are also key strengths to note. 4.2 Weaknesses One of JCPenney’s most obvious weaknesses is their falling sales and liquidity problems. According to an article in USA Today, JC Penney saw a 32% decrease in sales during the 2012 holiday season compared to the year before (Hadley, 2013). However, this decline in comparable sales has underlying factors. Some of these include: decrease in popularity, changing business strategies, and lack of coupons. Under CEO Ron Johnson, JCPenney abandoned promotional sales and strategized building stores within stores (“J.C. Penney almost,” 2014). Johnson’s radical plans turned out to be a complete bust and are the main cause of the huge sales drop. Williams, a former customer of JCPenney commented, “I would go back. I miss it. That was my go-to store for a long time, and then it changed” (“What’s next,” 2013). Many customers also share Williams’
Strengths for Duquesne University would be that it is nationally ranked number 115. This is a number that can beat many competitors and creates benefits for those that attend. Classes that have fewer than twenty students is 40.9% and classes that have fifty or more students is only at 9%.. (http://colleges.usnews.rankingsandreviews.com/best-colleges/duquesne-university-3258/rankings). Duquesne is located in Pittsburgh Pennsylvania and is known to be one of the top places to live in the country. Pittsburgh is considered the most livable and resilient. There is a young crowd that could be an interest for young adults, also this city is considered to be the third safest cities in the states (https://fitt.co/pittsburgh/pittsburgh-best-city/). Religious values are what many people look for to keep that connect they have with their beliefs, having these values instilled in the curriculum could be a benefit view for parents and students.
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Sales at stores open at least a year declined 11.5% in the fiscal second quarter as the company scaled back the number of pharmacies and electronic products in its stores. Kmart's same-store sales fell 9.4%, compared with
The idea that department stores might be losing out to retailers like Amazon is not a new one. However, the extent to which one affects the other is not entirely clear. More specialized, non-department stores may also play a role in pulling department store sales downward. Clothing store sales, for example, grew slightly, by 1.2 percent, from January 2013 to January 2014 while department store sales declined. (Census Bureau, 2014)
...of Kmart’s financial problems and unclear marketing strategy local stores have also suffered. Kmart struggles to change these negative images, and create a positive image to differentiate itself form its competitors. Even though Kmart has had a struggling past, changes can be made by management to improve stores status and attract customers.
Tuttle, Brad (2013, April). The 5 Big Mistakes That Led to Ron Johnson’s Ouster at J.C. Penney.
Kohl’s also boasts a loyal customer base and strong brand equity. These strengths are critical to offset their weaknesses. Flaws include an imbalance on sales for men’s products and a lacking online presence. (Kohl's Corporation, n.d.) Another way that Kohl’s is actively counterbalancing their negatives is by capitalizing on opportunities. Kohl’s has found that their beauty sections are an immense source of opportunity. As a result, the company is expanding those departments in an effort to capture those sales that would otherwise go elsewhere. (Wahba, 2014) Finally, Kohl’s keeps the knowledge of their threats at the forefront of their decision-making. They understand that their coupon system can be abused and cause profit losses. They also recognize that price wars in their industry can also be very damaging. As a result, they are working towards more secure methods of offering savings and strategically making efforts to remain the leader for price setting. (Wahba,
Target Corporation is the biggest discount retailing business in the US which comes just after Wal-Mart Stores Inc. The headquarters are located in Minneapolis in Minnesota in the USA. George Dayton founded it. It initially started as a family business with a regional retailer shop and later grew into a national full retailer store. The company’s main aim is to offer retail services at friendly rates and, its main attracting feature is discount rates offed on different products in the business. The company has indicated tremendous growth in the retail business. It has a target to outgrow its market and achieve competitive advantage over its competitors. This essay seeks to discuss the competitive analysis and
MSN Money. (2014, March 23). Penney Co Inc (NYSE: JCP). Retrieved from MSN Money: http://investing.money.msn.com/investments/stock-price?Symbol=jcp&ocid=qbeb
Johnson had several highly ambitious ideas to reinvent J.C. Penney stores. The former CEO ultimately failed at reenergizing the company. All of his ideas were not bad but he failed because he ignored parts of the three core processes of business: People, Strategy, and Operations.
When Ron Johnson took over the helm as CEO of J. C. Penney, he came with big expectations. He had previously seen tremendous success at both Target and Apple. However, he left his tenure at J. C. Penney only a year later with the company in much worse shape. Clearly, mistakes were made. Despite his tremendous reputation and his previous successful experience, Johnson failed to practice the three core processes of business. These are people, strategy, and operations. Johnson had ignored all three methods, and it led to his quick departure.
The purpose of this memo is to show the affects of how Albertson’s is trying to implement many strategies in order to try, and compete with its powerhouse competitor Wal-Mart. This memo will contain information on steps Albertson’s is taking to gain back some of the market share that Wal-Mart has swallowed up. It will also describe Albertson’s planned innovations that will be what determines their success. Lastly it will discuss how through IT as well as a successful implementation of satisfying consumers demands, will possibly allow them to compete with the ever so powerful Wal-Mart.
Marzilli, T. (2013, April 24). Long-Term Look At Brand Perception Shows J.C. Penney Losing Ground Vs. Kohl's. Retrieved April 07, 2014, from http://www.forbes.com/sites/brandindex/2013/04/24/long-term-look-at-brand-perception-shows-j-c-penney-losing-ground-vs-kohls/
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
Seitz, P. 2014, Best Buy Turnaround At Issue After 'Shocking' Holiday Miss CEO: Firm 'Outcompeted' Retailer slashed prices vs. Amazon.com, Wal-Mart; aims to boost online sales, Los Angeles.