Assignment 3 @ AUGUST 9th

8/5/2020 JC PENNEY - BA-301-OL2: RSRCH & ANALYSIS BUS PROBLEMS (Summer 2020)

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JC PENNEY Alya Al Haddabi posted Jul 15, 2020 11:12 PM

BA-301-OL2: RSRCH & ANALYSIS BUS PROBLE…

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Problem: Closure of 5 Stores Causes

1. Increased competition from such stores as Wal-Mart and Target (Garrity, 2020).

2. Inability to fight off increased competition from online retailers.

3. Derailed innovation that has led to lack of a competitive edge. The company was left behind when such other retailers as Wal-Mart were positioning themselves as innovative and adaptive to new technology (Garrity, 2020). As such, it failed to move with the e-commerce tide that is knocking out conventional big box retailers.

4. Significant reduction of the company’s market share.

5. Closure of some of the stores in the company’s chain.

6. Poor marketing strategies. 7. Overlooking competition.

Effect The company is now filing for bankruptcy. In addition to the five stores that closed in 2019, an additional one hundred and forty stores will be closing all over the U.S (Garrity, 2020).

8/5/2020 JC PENNEY - BA-301-OL2: RSRCH & ANALYSIS BUS PROBLEMS (Summer 2020)

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Problem Statement

Based on the analysis carried out on the above fishbone diagram, it is apparent that lack of

innovation has led to the imminent failure of JC Penny as indicated by lack of competitive

technology, poor marketing strategies and inability to fight off erosion of its market share.

8/5/2020 JC PENNEY - BA-301-OL2: RSRCH & ANALYSIS BUS PROBLEMS (Summer 2020)

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8/5/2020 JC PENNEY - BA-301-OL2: RSRCH & ANALYSIS BUS PROBLEMS (Summer 2020)

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Taylor Robin July 19 at 5:19 PM

Hi Alya,

You chose a great company to analyze! It is clear that they have decreased in popularity over the past couple of decades. When I heard that JCPenny is filing for bankruptcy, it did not come as a shock to me. They have done little to rebrand as consumer preference has changed over time. If JCPenny continues to carry on as usual, they will continue to perform poorly amongst other top competitors. Stores like Target and Wal-Mart often provide price matching to appeal to their customers. I’m curious if JCPenny also offers this. Good luck on your future research!

Best,

Taylor Robin

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Lieoncio Bush July 19 at 10:05 PM

Hi Alya, I think that JC Penney is among the companies that are losing or lost their market share due to lack of innovation and lack of appeal to the younger generations. Similarly, the big companies such amazon makes it even harder for other companies to compete. I wonder what their online sales forecast looks like, and what implementation they have put in place to try to survive? I think that technology has a lot to do with the survival of most companies and they could benefit from the implementation of data gathering to target consumers, but it seems that they have stayed irrelevant for the past few years. Great company to research! Good luck!!

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