JCPenney

20
Ashley Kitchens, Dimisha Rodgers, Zach Owens November 26, 2012

description

This was a group project of the JCPenney Company and shows the breaking down of their strategies financially, economically, competitively, etc. These strategies define their operations and its ups and downs throughout the company’s history. This ppt. was made as a visual aid for our presentation back in the Fall of 2012.

Transcript of JCPenney

Page 1: JCPenney

Ashley Kitchens, Dimisha Rodgers, Zach Owens

November 26, 2012

Page 2: JCPenney

Overview

History

Industry Overview

Current Business Plan

Major Competitors and Competitive

Rankings

Current Competitive and Firm Financial

Performance

Environmental Factors

SWOT

Major Competitive Issues

Recommendations and Results

Risks

Page 3: JCPenney

James Cash Penney

 CEO Ron Johnson

Established 1902

1915 1920’s 2012

83 6471102

Page 4: JCPenney

Industry Overview

Page 5: JCPenney

Current Business Strategy

Page 6: JCPenney

GOAL:To Be

"America's Favorite Store”

Price Strategy

Shops Strategy

Page 7: JCPenney

Major Competitors and Competitive Rankings

Current Competitive and Firm Financial Performance

Environmental Factors

Page 8: JCPenney

Competition

Page 9: JCPenney

Competition

Macy’s JCPenney

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Industry & Firm Performance• •

• HSN•

JCPenney•

Macy’s• Sears

Page 11: JCPenney

Industry & Firm Performance• •

• •

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Industry & Firm Performance

ROE2005 = 9.76%2006 = 8.23%2007 = 9.83%2008 = 11.96%2009 = 12.78%2010 = 17.58%2011 = 12.99%

2012 10.65%

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General and Specific Environmental Factors

Segment/Trends and Events Positive Neutral Negative Demographic Aging Population X Changes in Ethnic Composition X Greater disparities in income levels X Sociocultural More women in the workforce X Postponements of family formation X Political/Legal Increases in Federally mandated X Minimum wages Technological Emergence of Internet technology X Miniaturization of computing X technologies Economic Unemployment Rates X Consumer Price Index X Interest rates X Global Increasing global trade X Emergence of the Indian and X Chinese economies

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SWOT

Major Competitive Issues

Recommendations and Results

Risks

Page 15: JCPenney

SWOT Analysis of JCPenney

Strengths: Long History

Brand Recognition Established Locations Nationwide Exclusive Popular Brand Names

Weaknesses: Decline in comparable store sales

Decrease in popularity Changing business strategies Lack of coupons

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SWOT Analysis of JCPenney

Opportunities: Internet Sales

Exploring Niche Markets (Maternity or Big&Tall) Attracting New Customers Complete overhaul of marketing strategies Launching new exclusive private label brands

Threats: Rising Labor Costs in the U.S.

Increasing competition in industryInternet-customers comparing pricesWeak consumer spending

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Major Competitive Issues

• Changing of brand image• Selling Strategy• Marketing Strategy

• Environmental Factors: Aging Population, Women in the Workplace, Unemployment Rates, Interest Rates, and Minimum Wages.

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Strategic Recommendations and Results

• Explore niche markets, for example, Big&Tall and Maternity

• Move more aggressively into online sales

• Allow customers to use coupons again

• Launch new exclusive and private label brands

• Fire the CEO if sales continue to decrease

Page 19: JCPenney

Risks Associated with Recommendations

• Implementing new strategies could result in more confusion for customers which could lead to a further decrease in sales.

• If reaching out to a niche market, JCPenney could suffer financially if it doesn’t work.

• A change in management would cost the company a considerable amount of time and money.

Page 20: JCPenney

Questions?