Swot Analysis Of Jc Penny Company

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J. C. Penny Inc. Porter’s five forces The bargaining power of the J. C Penny Suppliers There is a high level supplier bargaining power 1. This has a positive impact on the company as the costs of raw materials are subject to reduce. The high level competition will in turn have a long-term positive influence on the J. C Penny Company. The resultant effect on the high competition among the suppliers is less bargaining power between the suppliers. The J. C Penny Company is, therefore, at an advantage of determining the cost of raw materials from their suppliers in order to maximize on their profits. The overall effect of the less bargaining power of the J.C Penny suppliers is that it works positively for their success in the market. The bargaining…show more content…
The distribution networks of the new companies are high and tends to affect the operations of JCP. Therefore, the company should build a strong distribution network so as to counter significantly the operations of the new companies that produce similar products. The “mom and pop” stores have been reported to resort in selling products online, otherwise they become obsolete. J. C. Penny’s SWOT analysis The strengths of the company are: * The existence of more than 1100 locations worldwide * Their quality products such as clothing, jewellery, beauty products and even footwear and furniture * The company also offers shipment of their goods for customers, which gives their customers the best experience in the end, hence attracts more customers. * The company also offers free haircuts for the children The weaknesses of JCP Since its competitors give similar products, the company is faced with limited market share 2. International business operations have also challenged the services of JCP due to the current emerging economies worldwide. Opportunity for…show more content…
The ability to increase sales and stores in America relies on customers’ preference in buying JCP products hence; the strategy is subject to dealing with customers’ satisfaction first before addressing their expansion strategy. The ability to introduce more brands to the global market through the re-organization of the departments is seen to be a proper step to achieving the corporate strategy in globalizing the business. However, this would be hampered by stiff competition from the three major

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