Assignment 3 @ AUGUST 9th
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JCPENNYPROBLEMSTATEMENT.docxRunning Head: JC PENNY 1
JC PENNY 2
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Symptom 1: 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.
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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). |
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.
Reference
Garrity, A. (2020). JC Penny is the Latest Retailer to File for Bankruptcy. Good Housekeeping. Retrieved from https://www.goodhousekeeping.com/life/money/a27556542/jc-penney-closing-stores/
