Jcpenney Company Analysis

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  • Topic: Catalog merchant, Department store, Financial ratio
  • Pages : 12 (1261 words )
  • Download(s) : 455
  • Published : August 12, 2009
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|JC Penney Case Analysis | | | |Strategic Management Graduate School of Management | |Southern Nazarene University | | | |4/27/2009 | | | |Sharis Atkins |

Company Analysis

Case Profile

JC Penney is a mid range department store, founded in 1902 by James Cash Penny and William Henry McManus as “the Golden Rule”, becoming JC Penney in 1913. J.C. Penney is the second largest department store retailer (trailing Sears, Roebuck and Co.) and the largest catalog merchant in the United States, with licensing agreements for its products throughout the world. The company’s home base is located in Plano, TX .JC Penney operates 1,067 department stores in 49 the United States and Puerto Rico. J. C. Penney also operates catalog sales merchant offices nationwide in many small markets, comprising a portion of the largest general merchandise catalog business in the United States.

Vision Statement

To be one of Americas leading retailers, operating throughout the United States

Mission Statement

To provide customers with style and quality at smart prices; Targeting their brands and products to Middle America and most specifically, the “missing middle”

Situational Analysis

Industry Analysis

Threat of Rivalry among Competitors

The department store market has a number of competitors all varying for the consumer’s dollar. Although each has their specific strength, all have a share of the JC Penney market. Main key competitors are Kohl’s, Sears and Macy’s. Competitors are primarily in the department stores industry. Competition is based on apparel, accessories, retail, nonstore retail, and lending sectors. Demand is driven by consumer income and demographics. The profitability of individual companies depends on the correct assessment of repayment likelihood and effective collections activities.

Substitute Products

• AmbrielleTM

• a.n.a.TM

• Chris Madden®

• Cooks

• St. John’s Bay®

• Stafford

• The Original Arizona Jean Company®

• Worthington®

• American Living

• Cabin Creek®

• DecreeTM

• East 5th®

• FlirtitudeTM

• J.Ferrar®

• Liz Baker®

• Mixit®

• 9-2-5®

• Linden StreetTM

• Okie DokieTM

• Strictly ComfortTM

• Towncraft®

• The JC Penney Home Collection

• Studio by The JC Penney Home Collection

• Underscore®

• Clothing suppliers

• Makeup suppliers

• Shoe suppliers

• Home furnishing suppliers

• Technology suppliers

• Catalog suppliers

Buyers

• Income customers in the 35-54 age range

• Annual incomes between $40,000 and $100,000

Entry of New Competitors

Today, businesses operate in a world of unprecedented change fueled by globalization, technology and growing concern for the environment. People consider the environmental and social impacts of what they buy, where they invest and where they choose to work. “Every Day Matters” brand positioning is intended to generate deeper more emotionally driven relationships with customers by fully engaging associates to offer encouragement, provide ideas and inspire customers every time they shop at JC Penney.

Strategic Analysis

Resources

Tangible &...
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