The generic strategy I’ve selected for JC Penney is the best cost provider strategy. JC Penney can provide value for its customers by using the best cost provider strategy and giving the customer a higher end product at a lower cost. The retail market is very competitive and has a broad range of competition from Sears, Macys and Nordstrom.
The best cost strategy works well when the target customer is extremely price sensitive and small changes in price bring about large changes in sales volume (Turner, 2010). JC Penney when successful in the 80s and 90s when they catered to the middle class. When Ron Johnson became CEO in 2011, he started to focus on the higher end demographic, which resulted in a decline in the middle class shopping at JC
The best cost strategy works well when the target customer is extremely price sensitive and small changes in price bring about large changes in sales volume (Turner, 2010). JC Penney when successful in the 80s and 90s when they catered to the middle class. When Ron Johnson became CEO in 2011, he started to focus on the higher end demographic, which resulted in a decline in the middle class shopping at JC