Jcpenney Merger Case Study

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Here are some of the reasons why JC Penney is an ideal candidate for merging with Kohl company. One of these reasons is that JC Penney is also a key player in the retail industry. Joining with Kohl's will enable the two companies to leverage each other's experience and competencies. Another reason is that JC Penney is facing challenges and may be open to discussions about a merger. As observed above, the company may be forced to close up to 140 stores. This firm is vulnerable and in desperate need of intervention. This intervention should take the form of a merger with Kohl’s. The third rationale for recommending a merger between Kohl’s and JC Penney is the fact that the latter possesses critical competencies and remains a significant force …show more content…
The firm's failure to expand into the international market is one of the factors that have led to business difficulties that it faces today. In its annual report for 2016, Kohl’s admits that the American retail industry has become intensely competitive. Many retailers are competing for the attention and money of the American market. If Kohl’s is to emerge stronger from the challenges that it faces today, it needs to develop and implement some business and corporate level strategies. Setting up stores in emerging markets is one of the business level strategies that the company should consider applying. Emerging markets provide companies with an opportunity for growth. For years, such markets as Asia and Africa have been neglected, yet they hold immense potential; Kohl’s should move with speed and set up base in these markets where customers have a preference for Western products. The choice for Western products means that when it moves into these markets, Kohl’s will find ready consumers. The vast population in these markets also means that Kohl’s will not have to try too aggressively to find buyers for its …show more content…
Competition is forcing firms to expand their reach into new markets. PepsiCo is among the businesses that have used international expansion to shield themselves against rivals in the industry. The 2010 acquisition of Pepsi Bottling Group has further bolstered its financial position and leadership in the beverage industry. Kohl’s needs to follow the example of PepsiCo and set up operations in international markets. Asia and Africa are among the markets that are ripe for investment. Kohl’s should also rethink its relationship with its customers. It should endeavor to offer its customers the best possible quality of service; this will enable the company to avoid the fate of other retailers that have suffered

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