Swot Analysis Of Jcpenney
I chose to research the website of the department store JCPenney, which has a very strong web presence and an efficient web site.
1) Overview:-
a) A few of JCPenney's major competitors are Kohls, Sears, Wal-Mart, Target, Marshall Fields, Carson Pirie Scott, etc. They all follow the Reactive and Partial cyber-marketing business model, which means that they are present physically and they also have an online presence. Partial cyber marketing is a reactive response of existing companies who have done business through the physical distribution channels.' (text, pg 44) Even though these stores have an electronic presence, their main business is generated through physical stores.
The market segment at which the products/services are aimed …show more content…
are the demographic and also psychosocial market. The targeted customers are "Modern Spenders" and "Starting Outs", who shop for apparel, accessories, and home furnishings; people from day to day lives, needing items like clothes, (which can be for men, women and children); furniture, shoes, house wares, etc. These are people who are willing to shop at either physical stores where JCPenney is located or thorough catalogs or also through the convenience of the Internet. By focusing on the age, gender, etc. the company can cater or better focus on age, for e.g. the company can make more choices available for the children in terms of clothes, Gender the company can invest in some more products which attract people who need items for either a man -, young or old, a woman young or old, a child- infant or toddler girl or boy, and so on. These are just a couple of examples of how demographic market segmentation can help a company. On the other hand, by focusing on the psychosocial segmentation, a company can get an idea of the kind of day to day customers it receives. The customers can be from any walk of life they can either hold a very high status in society, or in the middle, or not high at all. Different people prefer different kinds of items. So psychosocial segmentation can help companies decide a customer's lifestyle, personality and social class based on the customers' shopping habits.
b) A typical structure of the supply chain is upstream activities, which include material and service inputs from suppliers; internal activities involving the manufacturing and packaging of goods and downstream activities involving the distribution and sale of product to distributors and customers. (text, pg 201)
The basic structure of JCPenney's supply chain can be written as: -
I.
The Upstream activity Wherein different suppliers and manufacturers bring their goods and commodities and pass on to the main supplier for JCPenney. Also, boxes from the paperboard company and labels from the label company are sent.
II. The Internal activity Where the goods and items are first inspected, then either approved or rejected and then sent for assembly and packaging.
III. The Downstream activity- Where the approved and packaged items are sent to the distributors and who in turn send the items as needed to the physical stores plus the online outlets and through it, go to the final customer.
c) Buyers play an upper hand in the overall buying; because if no buyers, then no shops and no sales for big or small vendors and suppliers. In an electronic market, buyers play a major role because of the choices and competitions available over the net. With the internet, customers have the privilege of visiting all the major competitors by just a click of the button. It is not needed for them to go store to store searching for choices and deals. Buyers also have another added advantage online auction sites, (like e-bay for instance, for the case in question JCPenney). Buyers can not only get choices, but can also bid for the same and get a particular item at a price that is comfortable to their wallet. Therefore, companies are to an extent dependent on the buyer in an electronic …show more content…
market.
2) Industry and Competitive Analysis:-
a) Here is a SWOT analysis based on the firm's present website as compared to its competitors-
Strengths: - Some of the strengths of JCPenney's online store are the company's website, JCPenney.com is very customer friendly. The access to information is very quick and to the point. The home page is very welcoming and is successful in rendering the customer curious and more interested. Icons are all placed at a comfortable level; the customer does not have to wander a lot in search of products/services. JCPenney in addition has a very good brand recognition and loyal customer base.
Threats: - Web users these days are very vary of credit card fraud and theft going on over the Internet.
People pose as sellers of a particular product, lure the customer into buying it, and then ask for their credit card number and other personal information like their home phone number, their social security number, address and so on. Later on, they use this information to their benefit by purchasing items for their own use. The person whose identity has been just stolen is then held responsible for the payment. This way, the thieves get what they want and escape from paying even a penny. This has become a big threat to all businesses operating over the net. Companies need to keep checking and updating their online theft-blocking, spam blocking software and assure customers about the same time and time again in order for people to visit their website and make
purchases.
J. C. Penney Co. Inc., Plano, Texas, announced today that its Web site, jcpenney.com, has reached a milestone: $1 billion in annual sales, as of Jan. 13. Jcpenney.com was launched in 1994; since then, it has experienced rapid growth, realizing sales gains of 30 percent to 50 percent per year. "The multi-channel approach is a powerful model that has driven strong growth for the online business and opened the door to many new ways of reaching and serving our customers," said John Irvin, president of JCPenney Direct, in a statement. "We provide easy and seamless shopping with our combination of stores, printed catalogs and jcpenney.com. Customers recognize the convenience and breadth of merchandise available through all of these channels and the trusted quality and value of the JCPenney name." http://www.ddimagazine.com/displayanddesignideas/headlines/article_display.jsp?vnu_content_id=1001880680 b) Technology changes every moment of the day. Even as I write this, some new innovation or the other is taking place or is about to take place. The present and hottest technology trend is handheld devices, such as PDAs, iPod, etc. Manufacturers are unable to meet their demands. Day by day, people are getting techno-savvy. They need information fast and they need it to the point. Another hot product is cell phones, which are web and photoenabled. With all these products, customers have information at their fingertips and they can access any data from literally any part of the world. With the day to day changes in technology, customers will be able to visit JCPenney's website from across the globe with either their PDA or web-enabled cell phone and make a purchase any time. This is surely going to boost sales, as people get more and more information about products and services online instead of going to the store physically. So, web based devices are going to be around for a long time and people are going to make use of it more and more and in ways that will make them forget going to the stores completely.
c) Again, customers are day by day becoming choosier and more and more fashion-savvy. They need change. Here, I would like to quote an article from Business Week magazine's January 9th, 2006 issue.
By introducing a new line of clothes a.n.a. to the already existing large collection, JCPenney CEO hopes to take away the image of Penney being your mother's store'(pg 82) to a more hep and trendy one. The company was able to do so by adopting Brand Management Techniques used by Proctor & Gamble.
This, I am sure, will be a big hit and a good sales buster for the company. This is a very good example of the changing needs of the customer and their needs. Companies need to make sure they are well prepared and hand in hand with all the latest trends. Companies can rest assured only if they have all current trends available on hand. Online electronic commerce will definitely grow in the future. These days, it is possible to buy almost anything on the Internet as compared to in 1994 when the Internet was just launched. Anything, from a PC, to furniture, to a house, a car, groceries, etc. can be purchased these days from the Internet. Customers want to feel secure and confident in purchasing over the Internet and these days, companies are making every possible thing to make them feel the same. That is why, online activity is going to increase even more and this is going to impact the industry in a way that is going to change we do things now.
3) Critical Success Factors: -
a. The target market of JCPenney would be demographic and psychosocial, which means they are but not limited to, men, women, children, infants, etc.
b. The firm's critical factors can be
Products and services traded
Good technical infrastructure
Customer acceptance
User-friendly Web interface
Security and control of the EC system
Competition and market situation
Level of trust between buyers and sellers
4) Strategic Assessment:-
a)and b) Specific source of value and primary competitive strategy:-
I have combined points a and b because they are both related and have more or less the same answers.
Here are just a few reviews about JCPenney as a retailer, including its stores, catalogs and its online site:-
JCPenney values hard work, dedication and the willingness to develop and grow a strong Loss Prevention ... www.lycos.com/info/jcpenney--miscellaneous.html
JCPenney is a leading national retailer of brand-name ... Great selections, great savings, great value. ... www.lycos.com/info/jcpenney.html - 22k - Cached - Similar pages
The Company has been most successful when JC Penney associates at all levels made the customer the sun of the JC Penney universe." www.mondaymemo.net/020722feature.htm
At JCPenney, our top priority is making our customers feel good about out Store, our merchandise and the whole shopping experience. http://jcpenney.recruitmax.com/ENG/careerportal/job_list.cfm?szSearchType=Advanced&szCategory=27
JCPenney is one of the largest and most trusted retailers in the industry. We operate more than 1,100 department stores in the nation's leading malls, a sophisticated Catalog Network, a leading Internet Shopping site, and more. http://jcpenney.recruitmax.com/ENG/careerportal/Job_Profile.cfm?szOrderID=1753&szReturnToSearch=1&&szWordsToHighlight=
And now, here are some reviews on JCPenney's website, written by regular shoppers at the website:-
This excerpt is taken from http://www.epinions.com/content_42800221828
Offline Catalog Experience Makes JCPenney.com Tops Online
Oct 09 '01 (Updated Oct 09 '01)
Author's Product Rating Customer Service: On-Time Delivery: Selection: The Bottom Line
JCPenney.com offers wide selection, good value, and fast delivery. It's a site I'll use over and over.
Full Review
I've been a JC Penney catalog shopper since my children were very small. Every October I'd get their Christmas catalog, which offered a discount for items purchased early. I'd order toys for my kids, knowing how hard it was to get to the toy store without them, and have the toys delivered to my Mom's house. One night, about a week before Christmas, I'd go over after they were asleep and we'd have a gift wrap party. I'd transfer the wrapped presents to the trunk of my car, and tiptoe up the stairs to hide them in a closet.
My second son once surprised me by making a Christmas list for Santa when he was in kindergarten. It read something like this:
77 XC86423
81 PR70732
I went laboriously to the JC Penney catalog and transcribed it into items. "Santa won't understand that list," I told him, knowing only too well that we would.
I've used the JC Penney online site several times now, and find it to be one of the most comprehensive, easy to use online shopping sites on the net. Their many years of experience as a catalog sales company has given them the edge as a leading online department store merchandiser.
Coupons and Sales
JC Penney participates in a number of rebate, coupon and sale promotions. Last Sunday, for example, they offered 30% off all regular price items online (coupon code FALLVIP.) They advertised this in a mail circular and offered the promotion concurrently with a storewide sale. I took the opportunity to purchase some school uniform items for my daughter, and got one pleated skirt, two pair of pants, and two golf shirts for $44.
JCPenney.com coupons can be found in a number of places besides your mailbox. I have seen JCPenney coupons on dealcatcher.com and milesource.com, and recently used a 20% off a $50 purchase coupon on dealcatcher.com I just checked both these sites, and don't see any Penney coupons currently, but I'm sure they'll be offered in the future.
Shoppers can sign up for JCPenney's e-mail sales and promotion registry to receive e-mails of special offers.
JCPenney.com is also signed up with www.ebates.com (3%), charity site shopandsupport.com (4%), and college savings program www.upromise.com (3%.)
Once you've decided which rebate program to access JCPenney.com through, and have gathered any online or mail coupons to use, it's time to look at the site itself.
Finding Things Is a Pleasure at JCPenney.com
If you have JC Penney catalogs, you can order items by keying in the item and catalog information. Penney's catalogs include their Fall/Winter Big Book, their Christmas catalog, and specialty catalogs such as Palm Beach Jewelry, Big and Tall Men, Maternity, Especially for Talls, Uniforms and Scrubs, Gift Registry, Jodee (lingerie), Fashion Influences, Special Needs, Home Values, Plus Sizes, and Baby Book. Catalogs can be requested online, and, if there is a small charge attached for a few, it is offset by a coupon which more than covers the cost.
If you don't have a catalog, items are organized into categories and subcategories, and clothing items can be found by manufacturer (such as Levi's) as well as size and gender groupings. Pictures appear with each item, and you can magnify each picture and see it close up.
When I was looking for school uniforms for my daughter Sunday, I wasn't entirely happy with the size charts. The uniform shorts I'd gotten her at the beginning of the year were Junior Size 3. She also had a pair of navy pants from her elementary school last year, which was Child Size 12 slim. I looked at the Junior 3 uniforms, but they didn't list the inseam length for the pants (neither did the children's pants size chart, except I knew that the 12 slims fit.) There wasn't a length listed for the skirt. Her school has a strict rule: "Skirts and shorts must be no shorter than five inches from the floor when kneeling."
Their return policy is fairly liberal. Items accompanied by a receipt can be refunded for cash (or credit card credit), with no deadline listed. Items without receipts can be returned for store gift cards. Shipping is not refundable.
Furniture can be returned within 7 days.
Still, I'd rather see size charts that gave lengths or height parameters for clothing purchases.
Checking Out
When buyers go to the checkout page, they see a list of items ordered. A box for promotional coupons or codes is listed, and savings are deducted on the following page.
Payment can be made by JC Penney credit card, MasterCard, Visa, American Express, or Discover.
Two types of checkout are available--standard or express. Standard checkout offers the options of gift-wrap or payment by gift certificate. I have tried to use the express checkout and run into snags, so I generally stick with standard checkout.
Items can be delivered to home addresses or to the nearest store (a store locator is listed on the website.) Shipping costs accrue in either case, but they are about 25% less when items are delivered to the nearest store.
Unlike so many online stores, which charge for shipping per item or by purchase price, JCPenney.com charges shipping costs based on total weight of items. Item weight appears in the online and offline catalogs.
JCPenney is a secure site, using industry standard encryption procedures.
Delivery
E-mail confirmations are sent upon purchase. Shipping progress can be checked online.
Items delivered to the nearest store usually arrive within two to five days. Items delivered to the home arrive in 4 to 5 business days. I have not seen any options for express delivery, and assume that if you want an item more quickly, it's best to have it sent to the store.
United Parcel Service appears to be JCPenney.com's preferred method of delivery, although it states that it uses both United Parcel Service and the US Postal Service.
Why I Like JCPenney.com
I like JCPenney.com because of their wide variety of products, the flexibility of choosing products by offline catalog numbers or through their online site, their frequent sales and promotions, the high quality of their merchandise, and their prompt delivery.
In the department store category, I've also used walmart.com, and have found that JCPenney offers a much wider variety of items and many more coupon specials (although, overall, Wal-Mart's prices are lower.)
Christmas is coming.....I don't have real little ones to shop for anymore, but I will shop with confidence at jcpenney.com for my faraway family and friends.
Recommended
Yes
These reviews have been taken from a website called Dealtime.
About DealTime.com
(http://www.dealtime.com/aa61-about_dt)
DealTime.com® is a service of Shopping.com, a leading provider of comparison shopping services.
DealTime.com goes beyond product search to offer helpful information that helps people decide what to buy and where to buy it, including:
Pricing, availability and specifications on products from thousands of online merchants, including personalized tax and shipping details for each product;
Helpful consumer reviews and ratings from Epinions' trusted community of online shoppers who provide reliable advice on products and stores;
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JC Penney: 54 Store Reviews
Average Rating:
On-Time Delivery
Customer Service
See store information
Write a review at Epinions.com
Member Ratings and Reviews (54 total)
Overall Rating:
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Customer Service:
No wonder they've been around so long! by: lkayclark, January 27, 2006
I recently ordered almost $1000 in bedding for furniture I had just purchased for my three daughters. Comforters, sheets, curtains, pillows, lamps...the works. The children were able to look at the catalog and pick just what they wanted in their "new rooms". Everything was shipped on time and I received everything I ordered the first time. A couple of years ago, I ordered my step-daughter's bed from them and it too arrived with no problem. I have been shopping at Penney's, in-store, from their catalog, and now online, for years and have had no real problems to speak of. If I have to return something, there is no hassle and the employees I have dealt with have been most helpful.
I think what we see here is a classic case of how only people with gripes speak up. I want to be counted as a long-standing and consistently satisfied customer.
I would shop here again
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The WORST Furniture Experience EVER! by: cfdshop, January 12, 2006
I purchased a Chris Madden Embarkation Dining Set and Library Bookcase. It was ordered on 7/30/05. I was told it was on order and would be delivered at the beginning of 9/05. I was called in September and was told that the table and chairs were in and More >>
I would not shop here again
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First time ordering furniture, last too? by: somni, December 26, 2005
I ordered two pieces of furniture from them. Both pieces were beautiful up close but unfortunately one was defective and the other was visibly damaged and looked like it had already been returned at least once. 4 trips to and from the store and not a single piece of furniture to show for it. One was a complete nightmare to pick up too. The delivery speed was impressively fast, but that doesn't do much good when they're just delivering damaged goods that have to get returned anyway.
I would not shop here again
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What quality? by: verhaaff, December 24, 2005
Their online store is utterly worthless.
I've ordered several different items at different times and never did I get the order on time or without flaws.
I had to call several times to go after my orders because they either didn't know about anything (even though they raked up the money from my credit card) or I had to wait much longer then the expected delivery time.
I'm still waiting for an extended warranty I paid for half a year ago but never received
Their prices are also much too high for the quality they deliver, for half the price I could have bought this quality at the local Walmart (unfair, Walmart delivers better quality).
I've ordered dining room chairs which were badly damaged in their boxes and a painting which was stapled to the frame with a big fold in it.
So twice I had to drive 30 Miles to the nearest store to return an item.
We got our money back for the painting (without a refund on the interest we paid for that amount for the three (!) months we had to wait for it) and they send us two new chairs.
Never ever again.
I would not shop here again
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Do not order anything that has to be delivered from JC Penneys by: goodquest, December 15, 2005
After reading all the problems on Epinions with Spring Air Mattress, I decided to cancel my order (before it was delivered) with JC Penney's. This was back in July 05, as of December 05 they have not credited my account giving one excuse after another.I have had a credit card account with JC Penney's for over 30 years and have never had a late payment. My advice to others, do not purchase any major furniture item that has to be delivered. One thing for sure, as soon as I get this straighten out I will cancel my JC Penney credit card and never shop at JC Penney's again.
I would not shop here again
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JC Penneys is SOOOO Annoying! by: richtx, December 13, 2005
Since I'm 6'8" I used to buy a lot of clothing through their catalog as it is the only place to buy tall sizes at a reasonable price. It is IMPOSSIBLE however to even order a few items that are actually in stock. They must take orders and then place orders with the manufacturer when they have a sufficient quantity or something. I live in Florida so it's not all that easy to buy boots even in the winter here. I try to order a pair of boots and they are "back ordered" until January 4th. Since I'm leaving to go up north on December 26 that is of no help to me. I can't figure out why a normal sized person would ever consider buying from a catalog unless they lived a hundred miles from a store or something. JC Penneys has lousy customer service, relatively poor quality, and having to buy "2 or more" quantities to get a fair price is so damn annoying. A very annoying place to do business with in general. This has been my typical experience with this firm.
I would not shop here again
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JCPENNEY.COM - WORST ONLINE EXPERIENCE! by: vegasmom, December 11, 2005
This was, hands down, the worst online ordering experience I have ever had! I ordered over $200 worth of ski clothing during the Thanksgiving weekend sales...only to receive an email confirmation listing higher prices than what I ordered them at...also, the free shipping and 10% off for opening a JC Penney credit card was not applied either...well, I called customer service and was advised that unless I had some proof of the lower prices, there was nothing they could do...I was obviously not happy with that response and asked for more options...I quickly got attitude from the customer service rep and basically felt like I was being accused of lying! Well, needless to say, I cancelled my order completely and will be closing my credit account ASAP! This was truly the WORST experience I have ever had online and will never shop at JCPENNEY again!!!!!!
I would not shop here again
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Easy, Quick, and Fun by: kc8ukw, December 9, 2005
I purchased a winter coat through J.C. Penney's website. It was extremely easy. The website is well organized, and the coats are even listed by warmth. Once you select a coat, there are a wide range of sizes available, and sizing charts to help you know what size to pick. (One caution here - the sizing charts were pop-up windows, which caused my linux-based Firefox to crash. I had to order from a Windows computer.)
When you order, you can create an account, and thus later check your order status and even track your shipment. The only problem I had was trying to tell the system I was in room 314. You have to type "314" in the second Address field - not "Room 314" or anything like that, it won't work.
The order was delivered in about a week by UPS, packaged in a bag inside a bag. It was exactly what I ordered, and fits well. (Not bad considering I never tried it on, and just had someone measure me with a tape measure.)
Overall, this was a not perfect, but nonetheless great experience.
I would shop here again
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NEVER AGAIN - THERE IS NO FREE SHIPPING - Caveat Emptor by: lynnedmck, December 3, 2005
I am extremely disappointed in JC Penney and feel that they used deceptive trade practices on Thanksgiving weekend. All of their promos promised free shipping. As a result of this promo I choose to shop at JCP to be able to save a few dollars on approx $250 worth of clothes for my daughter. On check out and after completing the order suddenly shipping appeared on two items. When I complained and tried to resolve it I got a run around and basically told tough luck.
That's it for me I'd had some problems years ago with JCP catalog and thought they'd gotten their act together apparently not. I honestly believe that this is a deceptive practice used to lure in unsuspecting shoppers with the hope that they won't complain too much and will just give up.
I would not shop here again
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Worthless by: turtlegod, November 21, 2005
Ordered Mattress set. Delivery company called at 7:15am and left message telling me I had until 9:00am to return the call if I wanted to get the delivery that day. I returned the call and they told me they would deliver between 12:00pm and 4:00pm. After More >>
I would not shop here again
These are just a few of the reviews from www.dealtimeuk.com; these are the first ten to be precise. There are actually 54 reviews in all regarding JCPenney's website and in this particular site, I found the reviews and experiences of people were mixed about how the web site functions.
But in general, I felt that customer satisfaction runs overall best in terms of JCPenney.com being a customer friendly website, easy access to all items and items being in stock most of the time; even though customer service experience turned out mixed reviews, overall customer satisfaction seemed strong because:
I took this bit from http://www.mondaymemo.net/020722feature.htm, which gives a history of JCPenney's 100 years in business. This is James Cash Penney(the owner of JCPenney)'s philosophy, which is known as the Penney Idea and its being quoted in full:
To serve the public, as nearly as we can, to its complete satisfaction.
To expect for the service we render a fair remuneration and not all the profit the traffic will bear.
To do all in our power to pack the customer's dollar full of value, quality, and satisfaction.
To continue to train ourselves and our associates so that the service we give will be more and more intelligently performed.
To improve constantly the human factor in our business.
To reward men and women in our organization through participation in what the business produces.
To test our every policy, method, and act in this wise: "Does it square with what is right and just?"
Customers felt good because JCPenney employees, and customer-friendly website was a strong point for buyers. James Cash Penney believed that customer is a neighbor, and the company is there to serve the neighbor with a lowest fair price and provide the buyer with the best. So all in all, I would say that serving the customer right to his/her satisfaction, providing the customer with the best possible item for its best possible price is the main reason customers love to keep coming or atleast not take JCPenney out of their mind when it comes to shopping online or in their stores or even through their catalogs.
JCPenney also works time and again to announce new lines of style and fashion, targeting different classes of people, and enhancing the others that they have,so that no one is left out and at the same time, the store is current with the present market trends. This is what strives the firm to remain in strong competition. This, I feel also maintains the firm's competitive position.
c)Marketing efforts:
i. Product - service modifications/opportunities
1) Overview:-
a) A few of JCPenney's major competitors are Kohls, Sears, Wal-Mart, Target, Marshall Fields, Carson Pirie Scott, etc. They all follow the Reactive and Partial cyber-marketing business model, which means that they are present physically and they also have an online presence. Partial cyber marketing is a reactive response of existing companies who have done business through the physical distribution channels.' (text, pg 44) Even though these stores have an electronic presence, their main business is generated through physical stores.
The market segment at which the products/services are aimed …show more content…
are the demographic and also psychosocial market. The targeted customers are "Modern Spenders" and "Starting Outs", who shop for apparel, accessories, and home furnishings; people from day to day lives, needing items like clothes, (which can be for men, women and children); furniture, shoes, house wares, etc. These are people who are willing to shop at either physical stores where JCPenney is located or thorough catalogs or also through the convenience of the Internet. By focusing on the age, gender, etc. the company can cater or better focus on age, for e.g. the company can make more choices available for the children in terms of clothes, Gender the company can invest in some more products which attract people who need items for either a man -, young or old, a woman young or old, a child- infant or toddler girl or boy, and so on. These are just a couple of examples of how demographic market segmentation can help a company. On the other hand, by focusing on the psychosocial segmentation, a company can get an idea of the kind of day to day customers it receives. The customers can be from any walk of life they can either hold a very high status in society, or in the middle, or not high at all. Different people prefer different kinds of items. So psychosocial segmentation can help companies decide a customer's lifestyle, personality and social class based on the customers' shopping habits.
b) A typical structure of the supply chain is upstream activities, which include material and service inputs from suppliers; internal activities involving the manufacturing and packaging of goods and downstream activities involving the distribution and sale of product to distributors and customers. (text, pg 201)
The basic structure of JCPenney's supply chain can be written as: -
I.
The Upstream activity Wherein different suppliers and manufacturers bring their goods and commodities and pass on to the main supplier for JCPenney. Also, boxes from the paperboard company and labels from the label company are sent.
II. The Internal activity Where the goods and items are first inspected, then either approved or rejected and then sent for assembly and packaging.
III. The Downstream activity- Where the approved and packaged items are sent to the distributors and who in turn send the items as needed to the physical stores plus the online outlets and through it, go to the final customer.
c) Buyers play an upper hand in the overall buying; because if no buyers, then no shops and no sales for big or small vendors and suppliers. In an electronic market, buyers play a major role because of the choices and competitions available over the net. With the internet, customers have the privilege of visiting all the major competitors by just a click of the button. It is not needed for them to go store to store searching for choices and deals. Buyers also have another added advantage online auction sites, (like e-bay for instance, for the case in question JCPenney). Buyers can not only get choices, but can also bid for the same and get a particular item at a price that is comfortable to their wallet. Therefore, companies are to an extent dependent on the buyer in an electronic …show more content…
market.
2) Industry and Competitive Analysis:-
a) Here is a SWOT analysis based on the firm's present website as compared to its competitors-
Strengths: - Some of the strengths of JCPenney's online store are the company's website, JCPenney.com is very customer friendly. The access to information is very quick and to the point. The home page is very welcoming and is successful in rendering the customer curious and more interested. Icons are all placed at a comfortable level; the customer does not have to wander a lot in search of products/services. JCPenney in addition has a very good brand recognition and loyal customer base.
Threats: - Web users these days are very vary of credit card fraud and theft going on over the Internet.
People pose as sellers of a particular product, lure the customer into buying it, and then ask for their credit card number and other personal information like their home phone number, their social security number, address and so on. Later on, they use this information to their benefit by purchasing items for their own use. The person whose identity has been just stolen is then held responsible for the payment. This way, the thieves get what they want and escape from paying even a penny. This has become a big threat to all businesses operating over the net. Companies need to keep checking and updating their online theft-blocking, spam blocking software and assure customers about the same time and time again in order for people to visit their website and make
purchases.
J. C. Penney Co. Inc., Plano, Texas, announced today that its Web site, jcpenney.com, has reached a milestone: $1 billion in annual sales, as of Jan. 13. Jcpenney.com was launched in 1994; since then, it has experienced rapid growth, realizing sales gains of 30 percent to 50 percent per year. "The multi-channel approach is a powerful model that has driven strong growth for the online business and opened the door to many new ways of reaching and serving our customers," said John Irvin, president of JCPenney Direct, in a statement. "We provide easy and seamless shopping with our combination of stores, printed catalogs and jcpenney.com. Customers recognize the convenience and breadth of merchandise available through all of these channels and the trusted quality and value of the JCPenney name." http://www.ddimagazine.com/displayanddesignideas/headlines/article_display.jsp?vnu_content_id=1001880680 b) Technology changes every moment of the day. Even as I write this, some new innovation or the other is taking place or is about to take place. The present and hottest technology trend is handheld devices, such as PDAs, iPod, etc. Manufacturers are unable to meet their demands. Day by day, people are getting techno-savvy. They need information fast and they need it to the point. Another hot product is cell phones, which are web and photoenabled. With all these products, customers have information at their fingertips and they can access any data from literally any part of the world. With the day to day changes in technology, customers will be able to visit JCPenney's website from across the globe with either their PDA or web-enabled cell phone and make a purchase any time. This is surely going to boost sales, as people get more and more information about products and services online instead of going to the store physically. So, web based devices are going to be around for a long time and people are going to make use of it more and more and in ways that will make them forget going to the stores completely.
c) Again, customers are day by day becoming choosier and more and more fashion-savvy. They need change. Here, I would like to quote an article from Business Week magazine's January 9th, 2006 issue.
By introducing a new line of clothes a.n.a. to the already existing large collection, JCPenney CEO hopes to take away the image of Penney being your mother's store'(pg 82) to a more hep and trendy one. The company was able to do so by adopting Brand Management Techniques used by Proctor & Gamble.
This, I am sure, will be a big hit and a good sales buster for the company. This is a very good example of the changing needs of the customer and their needs. Companies need to make sure they are well prepared and hand in hand with all the latest trends. Companies can rest assured only if they have all current trends available on hand. Online electronic commerce will definitely grow in the future. These days, it is possible to buy almost anything on the Internet as compared to in 1994 when the Internet was just launched. Anything, from a PC, to furniture, to a house, a car, groceries, etc. can be purchased these days from the Internet. Customers want to feel secure and confident in purchasing over the Internet and these days, companies are making every possible thing to make them feel the same. That is why, online activity is going to increase even more and this is going to impact the industry in a way that is going to change we do things now.
3) Critical Success Factors: -
a. The target market of JCPenney would be demographic and psychosocial, which means they are but not limited to, men, women, children, infants, etc.
b. The firm's critical factors can be
Products and services traded
Good technical infrastructure
Customer acceptance
User-friendly Web interface
Security and control of the EC system
Competition and market situation
Level of trust between buyers and sellers
4) Strategic Assessment:-
a)and b) Specific source of value and primary competitive strategy:-
I have combined points a and b because they are both related and have more or less the same answers.
Here are just a few reviews about JCPenney as a retailer, including its stores, catalogs and its online site:-
JCPenney values hard work, dedication and the willingness to develop and grow a strong Loss Prevention ... www.lycos.com/info/jcpenney--miscellaneous.html
JCPenney is a leading national retailer of brand-name ... Great selections, great savings, great value. ... www.lycos.com/info/jcpenney.html - 22k - Cached - Similar pages
The Company has been most successful when JC Penney associates at all levels made the customer the sun of the JC Penney universe." www.mondaymemo.net/020722feature.htm
At JCPenney, our top priority is making our customers feel good about out Store, our merchandise and the whole shopping experience. http://jcpenney.recruitmax.com/ENG/careerportal/job_list.cfm?szSearchType=Advanced&szCategory=27
JCPenney is one of the largest and most trusted retailers in the industry. We operate more than 1,100 department stores in the nation's leading malls, a sophisticated Catalog Network, a leading Internet Shopping site, and more. http://jcpenney.recruitmax.com/ENG/careerportal/Job_Profile.cfm?szOrderID=1753&szReturnToSearch=1&&szWordsToHighlight=
And now, here are some reviews on JCPenney's website, written by regular shoppers at the website:-
This excerpt is taken from http://www.epinions.com/content_42800221828
Offline Catalog Experience Makes JCPenney.com Tops Online
Oct 09 '01 (Updated Oct 09 '01)
Author's Product Rating Customer Service: On-Time Delivery: Selection: The Bottom Line
JCPenney.com offers wide selection, good value, and fast delivery. It's a site I'll use over and over.
Full Review
I've been a JC Penney catalog shopper since my children were very small. Every October I'd get their Christmas catalog, which offered a discount for items purchased early. I'd order toys for my kids, knowing how hard it was to get to the toy store without them, and have the toys delivered to my Mom's house. One night, about a week before Christmas, I'd go over after they were asleep and we'd have a gift wrap party. I'd transfer the wrapped presents to the trunk of my car, and tiptoe up the stairs to hide them in a closet.
My second son once surprised me by making a Christmas list for Santa when he was in kindergarten. It read something like this:
77 XC86423
81 PR70732
I went laboriously to the JC Penney catalog and transcribed it into items. "Santa won't understand that list," I told him, knowing only too well that we would.
I've used the JC Penney online site several times now, and find it to be one of the most comprehensive, easy to use online shopping sites on the net. Their many years of experience as a catalog sales company has given them the edge as a leading online department store merchandiser.
Coupons and Sales
JC Penney participates in a number of rebate, coupon and sale promotions. Last Sunday, for example, they offered 30% off all regular price items online (coupon code FALLVIP.) They advertised this in a mail circular and offered the promotion concurrently with a storewide sale. I took the opportunity to purchase some school uniform items for my daughter, and got one pleated skirt, two pair of pants, and two golf shirts for $44.
JCPenney.com coupons can be found in a number of places besides your mailbox. I have seen JCPenney coupons on dealcatcher.com and milesource.com, and recently used a 20% off a $50 purchase coupon on dealcatcher.com I just checked both these sites, and don't see any Penney coupons currently, but I'm sure they'll be offered in the future.
Shoppers can sign up for JCPenney's e-mail sales and promotion registry to receive e-mails of special offers.
JCPenney.com is also signed up with www.ebates.com (3%), charity site shopandsupport.com (4%), and college savings program www.upromise.com (3%.)
Once you've decided which rebate program to access JCPenney.com through, and have gathered any online or mail coupons to use, it's time to look at the site itself.
Finding Things Is a Pleasure at JCPenney.com
If you have JC Penney catalogs, you can order items by keying in the item and catalog information. Penney's catalogs include their Fall/Winter Big Book, their Christmas catalog, and specialty catalogs such as Palm Beach Jewelry, Big and Tall Men, Maternity, Especially for Talls, Uniforms and Scrubs, Gift Registry, Jodee (lingerie), Fashion Influences, Special Needs, Home Values, Plus Sizes, and Baby Book. Catalogs can be requested online, and, if there is a small charge attached for a few, it is offset by a coupon which more than covers the cost.
If you don't have a catalog, items are organized into categories and subcategories, and clothing items can be found by manufacturer (such as Levi's) as well as size and gender groupings. Pictures appear with each item, and you can magnify each picture and see it close up.
When I was looking for school uniforms for my daughter Sunday, I wasn't entirely happy with the size charts. The uniform shorts I'd gotten her at the beginning of the year were Junior Size 3. She also had a pair of navy pants from her elementary school last year, which was Child Size 12 slim. I looked at the Junior 3 uniforms, but they didn't list the inseam length for the pants (neither did the children's pants size chart, except I knew that the 12 slims fit.) There wasn't a length listed for the skirt. Her school has a strict rule: "Skirts and shorts must be no shorter than five inches from the floor when kneeling."
Their return policy is fairly liberal. Items accompanied by a receipt can be refunded for cash (or credit card credit), with no deadline listed. Items without receipts can be returned for store gift cards. Shipping is not refundable.
Furniture can be returned within 7 days.
Still, I'd rather see size charts that gave lengths or height parameters for clothing purchases.
Checking Out
When buyers go to the checkout page, they see a list of items ordered. A box for promotional coupons or codes is listed, and savings are deducted on the following page.
Payment can be made by JC Penney credit card, MasterCard, Visa, American Express, or Discover.
Two types of checkout are available--standard or express. Standard checkout offers the options of gift-wrap or payment by gift certificate. I have tried to use the express checkout and run into snags, so I generally stick with standard checkout.
Items can be delivered to home addresses or to the nearest store (a store locator is listed on the website.) Shipping costs accrue in either case, but they are about 25% less when items are delivered to the nearest store.
Unlike so many online stores, which charge for shipping per item or by purchase price, JCPenney.com charges shipping costs based on total weight of items. Item weight appears in the online and offline catalogs.
JCPenney is a secure site, using industry standard encryption procedures.
Delivery
E-mail confirmations are sent upon purchase. Shipping progress can be checked online.
Items delivered to the nearest store usually arrive within two to five days. Items delivered to the home arrive in 4 to 5 business days. I have not seen any options for express delivery, and assume that if you want an item more quickly, it's best to have it sent to the store.
United Parcel Service appears to be JCPenney.com's preferred method of delivery, although it states that it uses both United Parcel Service and the US Postal Service.
Why I Like JCPenney.com
I like JCPenney.com because of their wide variety of products, the flexibility of choosing products by offline catalog numbers or through their online site, their frequent sales and promotions, the high quality of their merchandise, and their prompt delivery.
In the department store category, I've also used walmart.com, and have found that JCPenney offers a much wider variety of items and many more coupon specials (although, overall, Wal-Mart's prices are lower.)
Christmas is coming.....I don't have real little ones to shop for anymore, but I will shop with confidence at jcpenney.com for my faraway family and friends.
Recommended
Yes
These reviews have been taken from a website called Dealtime.
About DealTime.com
(http://www.dealtime.com/aa61-about_dt)
DealTime.com® is a service of Shopping.com, a leading provider of comparison shopping services.
DealTime.com goes beyond product search to offer helpful information that helps people decide what to buy and where to buy it, including:
Pricing, availability and specifications on products from thousands of online merchants, including personalized tax and shipping details for each product;
Helpful consumer reviews and ratings from Epinions' trusted community of online shoppers who provide reliable advice on products and stores;
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JC Penney: 54 Store Reviews
Average Rating:
On-Time Delivery
Customer Service
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Member Ratings and Reviews (54 total)
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No wonder they've been around so long! by: lkayclark, January 27, 2006
I recently ordered almost $1000 in bedding for furniture I had just purchased for my three daughters. Comforters, sheets, curtains, pillows, lamps...the works. The children were able to look at the catalog and pick just what they wanted in their "new rooms". Everything was shipped on time and I received everything I ordered the first time. A couple of years ago, I ordered my step-daughter's bed from them and it too arrived with no problem. I have been shopping at Penney's, in-store, from their catalog, and now online, for years and have had no real problems to speak of. If I have to return something, there is no hassle and the employees I have dealt with have been most helpful.
I think what we see here is a classic case of how only people with gripes speak up. I want to be counted as a long-standing and consistently satisfied customer.
I would shop here again
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The WORST Furniture Experience EVER! by: cfdshop, January 12, 2006
I purchased a Chris Madden Embarkation Dining Set and Library Bookcase. It was ordered on 7/30/05. I was told it was on order and would be delivered at the beginning of 9/05. I was called in September and was told that the table and chairs were in and More >>
I would not shop here again
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First time ordering furniture, last too? by: somni, December 26, 2005
I ordered two pieces of furniture from them. Both pieces were beautiful up close but unfortunately one was defective and the other was visibly damaged and looked like it had already been returned at least once. 4 trips to and from the store and not a single piece of furniture to show for it. One was a complete nightmare to pick up too. The delivery speed was impressively fast, but that doesn't do much good when they're just delivering damaged goods that have to get returned anyway.
I would not shop here again
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What quality? by: verhaaff, December 24, 2005
Their online store is utterly worthless.
I've ordered several different items at different times and never did I get the order on time or without flaws.
I had to call several times to go after my orders because they either didn't know about anything (even though they raked up the money from my credit card) or I had to wait much longer then the expected delivery time.
I'm still waiting for an extended warranty I paid for half a year ago but never received
Their prices are also much too high for the quality they deliver, for half the price I could have bought this quality at the local Walmart (unfair, Walmart delivers better quality).
I've ordered dining room chairs which were badly damaged in their boxes and a painting which was stapled to the frame with a big fold in it.
So twice I had to drive 30 Miles to the nearest store to return an item.
We got our money back for the painting (without a refund on the interest we paid for that amount for the three (!) months we had to wait for it) and they send us two new chairs.
Never ever again.
I would not shop here again
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Do not order anything that has to be delivered from JC Penneys by: goodquest, December 15, 2005
After reading all the problems on Epinions with Spring Air Mattress, I decided to cancel my order (before it was delivered) with JC Penney's. This was back in July 05, as of December 05 they have not credited my account giving one excuse after another.I have had a credit card account with JC Penney's for over 30 years and have never had a late payment. My advice to others, do not purchase any major furniture item that has to be delivered. One thing for sure, as soon as I get this straighten out I will cancel my JC Penney credit card and never shop at JC Penney's again.
I would not shop here again
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JC Penneys is SOOOO Annoying! by: richtx, December 13, 2005
Since I'm 6'8" I used to buy a lot of clothing through their catalog as it is the only place to buy tall sizes at a reasonable price. It is IMPOSSIBLE however to even order a few items that are actually in stock. They must take orders and then place orders with the manufacturer when they have a sufficient quantity or something. I live in Florida so it's not all that easy to buy boots even in the winter here. I try to order a pair of boots and they are "back ordered" until January 4th. Since I'm leaving to go up north on December 26 that is of no help to me. I can't figure out why a normal sized person would ever consider buying from a catalog unless they lived a hundred miles from a store or something. JC Penneys has lousy customer service, relatively poor quality, and having to buy "2 or more" quantities to get a fair price is so damn annoying. A very annoying place to do business with in general. This has been my typical experience with this firm.
I would not shop here again
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JCPENNEY.COM - WORST ONLINE EXPERIENCE! by: vegasmom, December 11, 2005
This was, hands down, the worst online ordering experience I have ever had! I ordered over $200 worth of ski clothing during the Thanksgiving weekend sales...only to receive an email confirmation listing higher prices than what I ordered them at...also, the free shipping and 10% off for opening a JC Penney credit card was not applied either...well, I called customer service and was advised that unless I had some proof of the lower prices, there was nothing they could do...I was obviously not happy with that response and asked for more options...I quickly got attitude from the customer service rep and basically felt like I was being accused of lying! Well, needless to say, I cancelled my order completely and will be closing my credit account ASAP! This was truly the WORST experience I have ever had online and will never shop at JCPENNEY again!!!!!!
I would not shop here again
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Easy, Quick, and Fun by: kc8ukw, December 9, 2005
I purchased a winter coat through J.C. Penney's website. It was extremely easy. The website is well organized, and the coats are even listed by warmth. Once you select a coat, there are a wide range of sizes available, and sizing charts to help you know what size to pick. (One caution here - the sizing charts were pop-up windows, which caused my linux-based Firefox to crash. I had to order from a Windows computer.)
When you order, you can create an account, and thus later check your order status and even track your shipment. The only problem I had was trying to tell the system I was in room 314. You have to type "314" in the second Address field - not "Room 314" or anything like that, it won't work.
The order was delivered in about a week by UPS, packaged in a bag inside a bag. It was exactly what I ordered, and fits well. (Not bad considering I never tried it on, and just had someone measure me with a tape measure.)
Overall, this was a not perfect, but nonetheless great experience.
I would shop here again
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NEVER AGAIN - THERE IS NO FREE SHIPPING - Caveat Emptor by: lynnedmck, December 3, 2005
I am extremely disappointed in JC Penney and feel that they used deceptive trade practices on Thanksgiving weekend. All of their promos promised free shipping. As a result of this promo I choose to shop at JCP to be able to save a few dollars on approx $250 worth of clothes for my daughter. On check out and after completing the order suddenly shipping appeared on two items. When I complained and tried to resolve it I got a run around and basically told tough luck.
That's it for me I'd had some problems years ago with JCP catalog and thought they'd gotten their act together apparently not. I honestly believe that this is a deceptive practice used to lure in unsuspecting shoppers with the hope that they won't complain too much and will just give up.
I would not shop here again
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Worthless by: turtlegod, November 21, 2005
Ordered Mattress set. Delivery company called at 7:15am and left message telling me I had until 9:00am to return the call if I wanted to get the delivery that day. I returned the call and they told me they would deliver between 12:00pm and 4:00pm. After More >>
I would not shop here again
These are just a few of the reviews from www.dealtimeuk.com; these are the first ten to be precise. There are actually 54 reviews in all regarding JCPenney's website and in this particular site, I found the reviews and experiences of people were mixed about how the web site functions.
But in general, I felt that customer satisfaction runs overall best in terms of JCPenney.com being a customer friendly website, easy access to all items and items being in stock most of the time; even though customer service experience turned out mixed reviews, overall customer satisfaction seemed strong because:
I took this bit from http://www.mondaymemo.net/020722feature.htm, which gives a history of JCPenney's 100 years in business. This is James Cash Penney(the owner of JCPenney)'s philosophy, which is known as the Penney Idea and its being quoted in full:
To serve the public, as nearly as we can, to its complete satisfaction.
To expect for the service we render a fair remuneration and not all the profit the traffic will bear.
To do all in our power to pack the customer's dollar full of value, quality, and satisfaction.
To continue to train ourselves and our associates so that the service we give will be more and more intelligently performed.
To improve constantly the human factor in our business.
To reward men and women in our organization through participation in what the business produces.
To test our every policy, method, and act in this wise: "Does it square with what is right and just?"
Customers felt good because JCPenney employees, and customer-friendly website was a strong point for buyers. James Cash Penney believed that customer is a neighbor, and the company is there to serve the neighbor with a lowest fair price and provide the buyer with the best. So all in all, I would say that serving the customer right to his/her satisfaction, providing the customer with the best possible item for its best possible price is the main reason customers love to keep coming or atleast not take JCPenney out of their mind when it comes to shopping online or in their stores or even through their catalogs.
JCPenney also works time and again to announce new lines of style and fashion, targeting different classes of people, and enhancing the others that they have,so that no one is left out and at the same time, the store is current with the present market trends. This is what strives the firm to remain in strong competition. This, I feel also maintains the firm's competitive position.
c)Marketing efforts:
i. Product - service modifications/opportunities