Jcpenney Industry Analysis
AN ANALYSIS OF JC PENNY’S AND HOW IT RELATES TO COMPETITION WITHIN THE RETAILING INDUSTRY
A Paper Submitted in Partial Fulfillment
of the Requirements for the MBA Degree
Course: MGMT 6800
MAY 9th, 2012
TABLE OF CONTENTS
EXECUTIVE SUMMARY2
COMPANY PROFILES4
1. JC Penney4
Strategy initiative4
Mission…………………………………………………………….. 5
2.KOHL’S………………………..………… ………..……………………5
Strategy initiative5
Mission6
3. Macy’s6
Strategy initiative6
Mission7
4. Sears7
Strategy initiative7
Mission8
INTRODUCTION8
EXTERNAL ENVIRONMENT ANALYSIS9
Demographic Segment9
Age structure 10
Ethnic Mix10
Income Distribution10
TABLE OF CONTENTS (CONT)
Technology12
Economy13
Sociocultural14
Legal Enviroment15
Global Enviroment15
Natural Trends16
PORTERS ANALYSIS17
Intensity of Rivalry17
Supplier Power17
Buyer Power17
Threat of Substitutes18
Threat of New Entrants18
COMPETITOR ENVIROMENT18
Future Objective18
Current Strategies19
Assumtions20
Capabilities21
Responses22
Driving Forces23
Key Success Factors25
Strategic Group Map27
TABLE OF CONTENTS (CONT)
Interpretation/Analysis27
Conclusion32
INTERNAL ENVIRONMENT ANALYSIS32
Tangible Resources32
Intangible Resources34
Capabilities 36
Core Competancies37
Four Criteria Test38
Distinctive Competances (Four Criteria Test Analysis) 39
VALUE CHAIN ANALYSIS42
Supply Chain Management42
Operations44
Distribution45
Receiving46
Sales and Marketing46
Service48
Weighted Competitive Strenght Assesment49
Integrated Marketing49
High Technology51
Conservative Inventory53
Multiple Distribution Channels54
Seasonal Transitions55
TABLE OF CONTENTS (CONT)
Conclusion57
FINANCIAL ANALYSIS ………….58
Profitability Ratios59
Liquidity Ratios61
Leverage Ratios62
Efficiency Ratios63
Conclusion64
PRO FORMA ………….65
SWOT ANALYSIS66
Key Result Area’s67
Decision Criteria69
Balanced Score Card71
Conclusion72
RECOMMENDATIONS72
Blue Ocean 75
REFERENCES 76
APPENDIX 80
TEAM POWER POINT 89
EXECUTIVE SUMMARY
This document seeks to identify the circumstances under which JC Penny has been operating and competing in the mid tier retail industry in the last twelve to eighteen months An extensive analysis has been conducted through the internal and external environments of the company. This document identifies eight key result areas that can be strategically addressed to improve JC Penny’s competitive position and financial dilemma up to beginning the next 12 months. This information comes in the wake of JC Penny attempt to rebrand its image and regain its identity as America’s favorite brand through thorough organizational restructuring under the parent company JCPenny holdings PLC. Key Result Areas discussed include the following: * A more competitive pricing strategy to increase sales via a pricing strategy called “fair and square everyday”. This will contain three pricing methods (1) “ Everyday” (2) “ Month Long Value” (theme sales such as back to school), and (3) “ Best prices” (Clearance to increase sales and traffic). * Create a unique...
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