Verified Document

JC Penney: J.C. Penney Company, Inc. Is Essay

JC Penney: J.C. Penney Company, Inc. is a holding firm with the main operating subsidiary known as J.C Corporation, Inc. The company sells accessories, family apparel and footwear, beauty products, home furnishings, and fine and fashion jewelry in its department stores in America and Puerto Rico. Since its inception, this company has grown to become a major retailer that operates approximately 1,106 department stores by the beginning of 2011. The business of this firm basically consists of selling their products and services through the numerous stores and its online business strategies. This growth has resulted in the company to be ranked as America's largest department-store retailer and catalog business.

Mission, Vision, and Primary Stakeholders of J.C. Penney:

The vision of J.C. Penney Company, Inc. is to become America's shopping destination for inventing great styles at reasonable and attractive prices. This vision is centered on the company's long-range growth initiatives that consist of four integrated business strategies in order to increase its sales, improve its financial performance, and achieve industry leadership. The company's mission is to provide merchandise and services to its global customers at a profit in ways that are consistent with its ethics and responsibilities.

In order to fulfill its vision and mission, J.C. Penney Company, Inc. has several stakeholders that are integral to the success of its operations and profitability. Some of its primary stakeholders are its customers who are its main focus because of the role they play in the effectiveness and profitability of the firm's operations. Since customers act as the lifeblood of this company, it's committed to serving them with quality, smart, and stylish products at reasonable prices. The second primary stakeholders are its diversified supplier base that consists of both domestic and foreign suppliers as the firm is not highly dependent on any single supplier. The other primary stakeholders are its stockholders and investors who also play an integral role to J.C. Penney's profitability in the market.

Competition of J.C. Penney Inc.:

J.C. Penney Company, Inc. operates in the highly competitive business of marketing and services that consists of numerous competitors including Kohl's, Stein Mart, and Dillard's. The competitors within this industry compete for market share depending on brand image investments, economies of scale, and tight cost controls. The five forces of competition for J.C. Penney, Company, Inc. In its business based on an industry...

Since these companies are competing for the same customers, rivalry among existing customers is a huge force of competition. The success of the firms in this industry is affected by huge economies of scale, high concentration, and lower fixed to variable costs (Bartholomew et. al, 2007).
Threat of New Entrants:

As this sector is highly concentrated with large and small competitive companies, successful department stores have long histories because they have discovered means of thriving in the stagnant industry. While the survival of new entrants is highly unlikely because of various factors, the threat of new entrants is a competitive force for J.C. Penney.

Threat of Substitute Products:

Since this sector is highly competitive, the threat of substitute products will be a constant competitive force for the company. Buyers switching costs can be regarded as low because businesses by department stores serve the same purpose. However, J.C. Penney Company, Inc. faces a moderate threat of substitute products because it targets mid-income families.

Buyers' Bargaining Power:

The overall business strategy of a company is greatly influenced by the bargaining power of consumers. While a higher bargaining power of buyers enable a firm to compete on price, low bargaining power of buyers don't typically influence a firm's business operations. This sector is mainly characterized with relatively lower bargaining power of buyers.

Suppliers' Bargaining Power:

Similar to buyer's bargaining power, this sector is marked with little bargaining power for suppliers since they provide small amounts of inventory. However, J.C. Penney experiences high supplier's bargaining power because it carries exclusive brands in its stores.

Given that these five forces of competition have an impact on the formulation of J.C. Penney's business policies and strategies; it has a major impact on the firm's overall profitability in the highly competitive industry.

SWOT Analysis of J.C. Penney:

The following is analysis on the strengths, weaknesses, opportunities, and threats of the company

Strengths:

Some of the major strengths of J.C. Penney include the…

Sources used in this document:
References:

Bartholomew et. al. (2007, June 1). J.C. Penny Company, Inc. Equity Valuation and Analysis.

Retrieved December 17, 2011, from http://mmoore.ba.ttu.edu/ValuationReports/Summer2007/JC-Penney.pdf

"J.C. Penney Company, Inc." (2010). Commission File Number 001-15274. Retrieved from United States Securities and Exchange Commission website: http://www.sec.gov/Archives/edgar/data/1166126/000119312511081412/d10k.htm#toc142811_12

"J.C. Penney Company, Inc. Summary Annual Report" (2010). Annual Reports.com. Retrieved December 17, 2011, from http://www.annualreports.com/HostedData/AnnualReports/PDF/jcp2010.pdf
"J.C. Penney Corporation, Inc." (n.d.). You Sigma: The Web's Most Extensive Resource for Information. Retrieved from Texas Tech University website: http://www.yousigma.com/comparativeanalysis/jcpenneycorporationincswot.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

What's Wrong With JC Penney
Words: 1182 Length: 3 Document Type: Research Paper

JC PENNEY'S RESEARCH PROJECT PROPOSAL -- JC PENNEY'S Research Project Proposal - J.C. Penney's JC Penney's Overview of Organization The J.C. Penney Company was once the dominant player in the retail industry as it was founded in the beginning of the twentieth century. However the company is now a holding company for struggling department store operator J.C. Penney Corp is still one of the largest department store and e-commerce retailers in the United States, J.C.

J.C. Penney News Is Bigger Than Lawsuit
Words: 2795 Length: 10 Document Type: Research Paper

J.C. Penney News Is Bigger Than Lawsuit Decisions, Revenue Losses, and Resignations - Mark Cuban's Stock Purchase Is Better Than Money for J.C. Penney's Recovery (JCP, MSO) Organizational context: J.C. Penney J.C. Penney is one of the most famous and renowned of the major U.S. department stores. It is well-known for its image of Americana and its reasonable prices. However, within this particular market segment, J.C. Penney is facing increasingly stiff competition

JC Penney Introduction & Ron Johnson at
Words: 1345 Length: 4 Document Type: Essay

JC Penney Introduction & Ron Johnson At this point it is hard to judge if JC Penney is a well-run company because it just got a new CEO but in recent years it definitely has not been well-run. The recently-fired CEO Ron Johnson made a few strategic moves to transition the company's store to the modern era (Heller, 2013). Among the moves made were to upgrade the clothing lines, eliminating the deep

Management Styles Used by JC Penney's Management
Words: 1854 Length: 5 Document Type: Research Paper

management styles used by JC Penney's management and pros and cons of each era of management. The paper begins with a general introduction of the management and then by answering the questions asked. The paper also evaluates company's management styles and problems faced by the company. Importance of innovative management style and a suitable style for JC Penney is also considered in the given paper. Management Penney being one of the

Retail/Fashion Marketing on J.C. Penney
Words: 1680 Length: 5 Document Type: Research Paper

Further the fair pricing strategy which Yousuf refers to as "a permanent discount of at least 40% on all items" could also effectively defend the company's market share from both existing competitors and new entrants. Next, J.C. Penney's move to embrace a new management team could end up yielding some positive results as such a move will inevitably change the way things are done at the firm. Indeed, in

Andrea Jung's Makeover of AVON Products, Inc.
Words: 4254 Length: 16 Document Type: Term Paper

Andrea Jung's Makeover Of Avon Products Business CASE STUDY ANDREA JUNG'S MAKEOVER OF AVON PRODUCTS, INC. Avon is a well-known and well-established company that has struggled to maintain financial health over the past decade. Under new leadership, a turn-around has begun. An in-depth industry analysis identifies several internal and external considerations for the company, such as the effects of globalization, the benefits of technology, the strength of the existing direct-sales model, brand recognition

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now