Jcpenney vs Macy's
JCPenney: Every Day Low Prices
Versus
Macy’s: Differentiated and Localized
11/29/12
Executive Summary
The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic environment to offer higher-end, localized products that you cannot find anywhere else. Our team has come to realize through internal and external analyses that Macy’s has come up the stronger of the two models. They have created competitive advantage through strong relationships with suppliers, differentiating their new product lines, and localizing for consumer needs. Though every day low cost is a great idea and could be catchy with consumers, JCPenney has failed to convey their new objective correctly. They lost touch with the end consumer and will have to catch up in that sense to gain back some ground. It was interesting to analyze and evaluate the new differences between the two department store’s strategies, as well as establishing which has gained the competitive advantage.
Introduction Given increasing competitiveness in their marketplace, JCPenney and Macy’s have both recently changed their strategies in order to increase penetration and profitability. As they currently stand, Macy’s strategy when quantified, is the most effective of the two. Both companies are part of the department store-retail industry and sell goods ranging from men, women, and children’s clothing, cosmetics, jewelry, all the way to home
Versus
Macy’s: Differentiated and Localized
11/29/12
Executive Summary
The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic environment to offer higher-end, localized products that you cannot find anywhere else. Our team has come to realize through internal and external analyses that Macy’s has come up the stronger of the two models. They have created competitive advantage through strong relationships with suppliers, differentiating their new product lines, and localizing for consumer needs. Though every day low cost is a great idea and could be catchy with consumers, JCPenney has failed to convey their new objective correctly. They lost touch with the end consumer and will have to catch up in that sense to gain back some ground. It was interesting to analyze and evaluate the new differences between the two department store’s strategies, as well as establishing which has gained the competitive advantage.
Introduction Given increasing competitiveness in their marketplace, JCPenney and Macy’s have both recently changed their strategies in order to increase penetration and profitability. As they currently stand, Macy’s strategy when quantified, is the most effective of the two. Both companies are part of the department store-retail industry and sell goods ranging from men, women, and children’s clothing, cosmetics, jewelry, all the way to home
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