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 power of the J. C Penny Customers
The products produced by the company have attracted many customers who cherish them a lot1. Whenever the customers rate high the products, the particular ones are subject to be on high demand which they in turn pay more for. This has a positive impact to J. C Penny that competes with retailers focused on high-end as well as low-end.
The JCP competition amongst its rivals
The J. C Penny Company is a big company that has several departments with many sub-departments. Therefore, the company benefits from its large size1. The rivals are too many making JCP weak to manage competition with companies such as Macy’s, which is a high-end retailer.
Threat of Substitutes
With the introduction of companies that deal with the same products such as Woolworths and Wal-Mart, the company has been set in a stiff competition leading to moderate threat of substitute1. The company’s customers are likely to be faced with a high switch from JCP to other companies due to a wide range of substitutes putting JCP at an enormous threat. The store showrooms also enable the customers to compare products and prices. However, it results in a significant impact hence; the company should put more focus on...