Using JCPenney as an example, explain the observed activities and their respecti
ID: 390663 • Letter: U
Question
Using JCPenney as an example, explain the observed activities and their respective ratings using Value Chain Analysis. Below is an attachment of the case for reference
Retailer
Net Margin
Sales
($ bil.)
Market Position
Comments:
Target
4.3%
68.5
2
Based on sales volume and performance, Target is succeeding with its target market of price-sensitive consumers who are looking for style and quality associated with mid-tier retailers.
Sears
-7.6%
41.6
2.75
Sears – the second largest company in terms of revenue – formerly held a higher market position in the 3-4 range along with JCP. After the company failed in an attempt to upgrade its clothing selection into a more expensive position, it entered a merger with Kmart. This move aligns the financially troubled company more with mass merchandise discounters than with high-end stores.
Retailer
Net Margin
Sales
Market Position
Comments:
Kohl's
6.2%
18.8
3
Kohl’s is a solid, mid-tier retailer. Smaller than most of its competitors, it has the best performance in the group.
JCP
-0.9%
17.3
4
Smaller in sales than all of the other named competitors, JCP features celebrity-focused private label product lines. The company applies pricing gimmicks to compete against discounters
Macy's
4.8%
26.4
5
A good performer amongst this group, Macy’s is positioned at the top end of the mid-tier segment. It has a deep product portfolio of private label brands, differentiated by store to deliver exceptional value for the customer. This merchandiser operates strategically using new technological tools to execute precision marketing and to stay in touch with changing market trends.
Retailer
Net Margin
Sales
($ bil.)
Market Position
Comments:
Target
4.3%
68.5
2
Based on sales volume and performance, Target is succeeding with its target market of price-sensitive consumers who are looking for style and quality associated with mid-tier retailers.
Sears
-7.6%
41.6
2.75
Sears – the second largest company in terms of revenue – formerly held a higher market position in the 3-4 range along with JCP. After the company failed in an attempt to upgrade its clothing selection into a more expensive position, it entered a merger with Kmart. This move aligns the financially troubled company more with mass merchandise discounters than with high-end stores.
Name: HW-4: Value Chain Analysis: JC Penney GO403 Time: Value Chain Category Primary Observed Activity* Rating (S, E, l) Explain WHY Operations Supply Chain Management Distribution Marketing and Sales Service Support Firm Infrastructure Human Resource Management R&D Information systems Note: Other columns may be added as needed for case analysis. Observed activity may include capability, approach, etc S, E, Isuperior, equivalent, or inferior " Rate activity as superior, equivalent, or inferior relative to competitors and explain WHYExplanation / Answer
Value chain category
Observed activities
Rating
Explain why
PRIMARY
Operations
It has a fully integrated oracle systems for operations and customer service
Superior
Relies on data driven inventory information for shipping order information which is not done by most of the companies
Supply chain management
If an item is not available in one store, it is looked for in another store and shipped from there
Equivalent
Most of the companies maintain such inventory record for better distribution
Distribution
Distribution centres are dedicated to specific segments of the store
Superior
A few companies have this strategy for distribution
Marketing and sales
Advertising, sales etc are put through an omnichannel experience
Equivalent
Almost every company has an omnichannel experience
Service
They offer specialized boutique services and instyle salon partnership
Superior
These are not offered by any other brands
SUPPORT
Firm infrastructure
They have recently introduced new management titles in recognition of the role offered to revamp its image
Superior
They are taking initiatives to keep the current baby boomers and attract millennial moms and creating more flexibility
Human resource management
The company celebrates long term employees with bronze medallion award
Superior
They provide new appliances to long term employees over and above the awards which every company offers
R&D
Limited R&D
Inferior
Other companies carry out more research and development compared to JC Penny
Information systems
They are not very efficient in terms of technology and improving Information system
inferior
Companies have better information systems than JC Penny
Value chain category
Observed activities
Rating
Explain why
PRIMARY
Operations
It has a fully integrated oracle systems for operations and customer service
Superior
Relies on data driven inventory information for shipping order information which is not done by most of the companies
Supply chain management
If an item is not available in one store, it is looked for in another store and shipped from there
Equivalent
Most of the companies maintain such inventory record for better distribution
Distribution
Distribution centres are dedicated to specific segments of the store
Superior
A few companies have this strategy for distribution
Marketing and sales
Advertising, sales etc are put through an omnichannel experience
Equivalent
Almost every company has an omnichannel experience
Service
They offer specialized boutique services and instyle salon partnership
Superior
These are not offered by any other brands
SUPPORT
Firm infrastructure
They have recently introduced new management titles in recognition of the role offered to revamp its image
Superior
They are taking initiatives to keep the current baby boomers and attract millennial moms and creating more flexibility
Human resource management
The company celebrates long term employees with bronze medallion award
Superior
They provide new appliances to long term employees over and above the awards which every company offers
R&D
Limited R&D
Inferior
Other companies carry out more research and development compared to JC Penny
Information systems
They are not very efficient in terms of technology and improving Information system
inferior
Companies have better information systems than JC Penny
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