Swot Analysis Jcpenney

689 Words2 Pages

The JCPenney company is into a perfect competition market. A perfect competition is defined as a high number of firms competing against each other selling identical products. It is also due of the fact that there is a free entry and exit to the market and the information about their products is well known. JCPenney is competing against every little retailer in America but have lately found itself competing against a more upscale competition against companies like Macy’s, Kohl’s, Target, Sears and Wal-Mart. In 2016 JCPenney has done very well against its competitors on a revenue basis. They have a revenue growth increase of 1.5% year on year, which is above their competitors averaging a revenue growth of 1.09%. They also have a small 7.8% market share competed to their primarily competitors, Macy’s with 17% market share and Kohl’s with a 14.1%. They also have a 1.7% higher that competitor like Target in their current ratio. A strong positive current ratio means that they are in a strong financial position.
Taking a deeper look at the competition between two major retailor companies, JCPenney and Macy’s. We can see that JCPenney has a -31.8% of return on equity compared to a
In comparison with their bigger competitors, only 13 percent of their costumers have an annually household income of more than $100,000. Kohl’s, Target and Macy’s have better results in this section. On the other side twenty-nine percent of JCPenny’s costumers makes less than $35,000 a year, capered to 19 percent at Khol’s and 20 percent at Macy’s. They are also aiming at putting the store in a region where the population is 100,000 person or more. They have noticed that their consumer’s purchase behavior is that they enjoy to shop seasonally and even during the off-season. Their costumer will usually buy in high volume, and that they see best values through deals and

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