respond to the following: (just a few sentences or questions for each) 1. The st
ID: 396054 • Letter: R
Question
respond to the following: (just a few sentences or questions for each) 1. The strategy that the new CEO at JcPenney was seeking to implement given the generic strategies, was the Integrated Cost Leadership/Differentiation Strategy. This strategy involves engaging in primary value-chain activities, and support functions that allow a firm to simultaneously pursue a low cost and differentiation. With the Cost Leadership Strategy, the CEO was offering a new-value pricing approach, this would offer a reduced price on goods across the board. The price that was listed would be the set price without further discounts. The intent of this would be to offer a "better deal", instead of offering high discounts on selected products. 2.The Intergrated Cost Leadership Strategy was a disaster for JcPenney because the company did not know how to differentiate effectively or provide the lowest-cost goods. JcPenney overlooked their firms current customers. JcPenney was cuaght in the middle and wasn't able to compete with the low-cost leaders such as WalMart, nor could it compete effecively with the more upscale and differentiated department stores, such as Target and Macy's
Explanation / Answer
JC penny has done stratgic mistake by replacing its old high pricing and discount offers to everyday low pricing. It makes a discouraging positioning of its stores in the mind of customers that it has reduced its quality or going to sell its business with top notch organizations like Apple and others. Its business strategy to choose integrated low cost strategy was a mistake as it does not know the way it can make differentiation in its products offerings. Even , customers were not liked its low price offerings. It has overlooked its current customers which ultimately ruined its business.
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