Introduction And Case Background Of Tjx Companies Incorporated ( Tjx )
TJX Companies Incorporated (TJX) was founded in 1976 and includes six separate business concentrating on the off-price segment of the apparel and home fashion retail market. Altogether, it has over 2,400 stores and 125,000 associates and is the largest such retailer in the United states. TJX focuses on obtaining branded goods at low prices by purchasing wholesale from manufacturers and excess stock from department and specialty stores. This allows TJX to sell items at 20 to 70 percent their usual cost. Since the profit margin is small, TJX’s specialty is in utilizing information systems to maintain operational efficiency, vendor relationships, and scale along the entire value chain. In late 2006, TJX discovered that some of their information systems had been compromised. Through subsequent investigation, it was learned that the attackers had taken advantage of weaknesses in the credit card approval process, wireless networks at stores, and physical security of in-store kiosks. Lack of strict adherence to compliance practices allow those weaknesses to occur, and insufficient log data made forensic analysis after the fact difficult and sometimes impossible. As a result of the breach, TJX was subject to millions of dollars in lawsuits and loss of customer trust.
Millions of dollars in lawsuits, lost sales, and remediation were spent as a result of the TJX data breach, and the trust of customers was diminished significantly. TJX…