1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels.
2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive ...view middle of the document...
Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales have been “engineered” to pay for it. It appears to me that with Mr. Johnson’s leadership Penney’s is following the five steps of strategic-management process.
5. I feel Penney’s is trying to follow Porter’s Cost-Leadership Strategy: Keeping Costs & Prices Low for a Wide Market. This strategy puts pressure on the company to work at their strategy. They need to be innovative and have ideas to reach a wide variety of customers as inexpensively as possible. By using the “Town Square” concept at Penney’s this is a good marketing tool to attract customers in an inexpensive way.
6. What I have taken away from this case is the knowledge of that there are different kinds of strategies for different kinds of companies. I feel the most important take away is that you must know who and what you are as a company and then you must figure out who and what you want to be as a company. Once you can establish this then you can go ahead with what competitive strategy that you want to implement for your company.