I had the opportunity to work at JCP when the previous CEO Ron Johnson came aboard to help the company recover from the recession’s effect. I remember he changed the strategy of the retail game inside the company. Mr. Johnson tried to change the company’s culture by adopting a new logo, “innovative ways” to assist customers and by adopting a new mentality; I remember we had so many meetings. Mr. Johnson also kept an open communication with all the personnel to keep us updated and aware of the situation of the company. He used to send us messages in form of a video quarterly about the company’s performance. I served for two years 2011-2013; Unfortunately, I was witness of job cuts and how employees were concerned about their careers at JCPenney;
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At the same time, the company must differentiate their brands like Arizona, Claiborne and St. John’s bay from other companies. According to Thompson, Arthur, Peteraf, Gamble, M. J. & A.J. III.. (2012), “… needs to position itself near the middle of the market with either a medium-quality product at a below-average price or a high-quality product at an average or slightly higher price”. (p. 136). However, JCPenney can reduce the price of its products until the final price covers fixed costs per unit, and after every single activity in the chain value has been adjusted to reduce expenses as much as possible without affecting the quality of the product. This strategy will provide a better stability in a long term, since works well during recessionary times (Thompson, Arthur, Peteraf, Gamble, M. J. & A.J. III., 2012, p. 136). At the end of the day shoppers take price as a priority over loyalty and the impact of super cheap prices impact the company’s reputation and affects relationship with those customers who really have the money to spend and be loyal (Codeless, n.d. para. 5). So this strategy is a good option to find a balance within price and customer
At the same time, the company must differentiate their brands like Arizona, Claiborne and St. John’s bay from other companies. According to Thompson, Arthur, Peteraf, Gamble, M. J. & A.J. III.. (2012), “… needs to position itself near the middle of the market with either a medium-quality product at a below-average price or a high-quality product at an average or slightly higher price”. (p. 136). However, JCPenney can reduce the price of its products until the final price covers fixed costs per unit, and after every single activity in the chain value has been adjusted to reduce expenses as much as possible without affecting the quality of the product. This strategy will provide a better stability in a long term, since works well during recessionary times (Thompson, Arthur, Peteraf, Gamble, M. J. & A.J. III., 2012, p. 136). At the end of the day shoppers take price as a priority over loyalty and the impact of super cheap prices impact the company’s reputation and affects relationship with those customers who really have the money to spend and be loyal (Codeless, n.d. para. 5). So this strategy is a good option to find a balance within price and customer