Jcpenney Industry Analysis

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Feinstein Graduate School

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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