1,271
5
Essay, 2 pages (300 words)

Turnaround of jcpenney

Opportunities: Various opportunities await JCPenney. With the merger of Kmart and Sears which is expected to eventually close other Sears’ outlets, JCPenney can move into offering the former competitor’s market. With the rapidly changing customer lifestyle and preference, the retailer can look into modifying its offerings like including more low-priced items in its merchandise. JCPenney can also take advantage of globalization by opening new stores in rapidly developing economies.
Threats: The retailer is threatened by the expected tougher competition from rivals especially Kohl.
Identification and Evaluation of Alternative Courses of Action:
1. Pursue relationship marketing. Relationship marketing is now becoming essential in recognition of the lifetime value that repeats transactions from a single customer can bring. Relationship marketing will help JCPenney by cultivating customer loyalty, lowering transaction costs, and more targeted marketing. However, this new strategy will be bringing in more costs; will necessitate the introduction of a new corporate culture; and training of human resource.
2. Additional financing services. In order to attract more customers and boosts, JCPenney can extend financing services. However, this will cause a diversion from the core business of retailing.
3. Improve pricing. Since customers are searching for trendy yet high-value products, JCPenney should improve its pricing. Improved pricing will attract more customers, heighten demand, and gain their loyalty. However, price cuts might harm the company by reducing margins and erode the company’s image.
Recommendation and implementation:
This case analysis recommends that the best strategy that JCPenney can pursue is relationship marketing. The company can implement this through its database of customers. By looking at their purchasing behavior, it will gain significant knowledge on how to satisfy them according to their preferences. JCPenney should also move to customize customer experience in order to address their specific needs. The company can do this by intensifying its effort of providing excellent before, during, and after-sales service. In an industry where all products are becoming more homogenous, service will be a good differentiating factor.

Thank's for Your Vote!
Turnaround of jcpenney. Page 1
Turnaround of jcpenney. Page 2
Turnaround of jcpenney. Page 3

This work, titled "Turnaround of jcpenney" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Turnaround of jcpenney'. 27 September.

Reference

AssignBuster. (2022, September 27). Turnaround of jcpenney. Retrieved from https://assignbuster.com/turnaround-of-jcpenney/

References

AssignBuster. 2022. "Turnaround of jcpenney." September 27, 2022. https://assignbuster.com/turnaround-of-jcpenney/.

1. AssignBuster. "Turnaround of jcpenney." September 27, 2022. https://assignbuster.com/turnaround-of-jcpenney/.


Bibliography


AssignBuster. "Turnaround of jcpenney." September 27, 2022. https://assignbuster.com/turnaround-of-jcpenney/.

Work Cited

"Turnaround of jcpenney." AssignBuster, 27 Sept. 2022, assignbuster.com/turnaround-of-jcpenney/.

Get in Touch

Please, let us know if you have any ideas on improving Turnaround of jcpenney, or our service. We will be happy to hear what you think: [email protected]