You will do a SWOT analysis of JC PENNEY. You will not count year 2020 in your analysis, only data from 2019 and before that is relevant. I have uploaded the SWOT instructions and explanation. I have

7/14/2020 Analysis | Passport

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J.C . P en ney M akin g a n A m bit io us P la y f o r M ajo r

A pplia n ce s

Opin io n | 10 M ay 2 0 16

U S d ep artm ent s to re s r e ta ile r J .C . P enne y m ad e a

m ajo r s p la sh o n M ond ay, 9 M ay 2 0 16 , w he n it

a n n o unce d t h at it w ould b e e xp an d in g it s m ajo r

ap p lia n ce s o ffe rin g s t o n e arly 5 0 0 s to re s in t h e U S

an d w ould b e o ffe rin g t h e p ro d ucts o n jc p .c o m a ft e r

a t r ia l in F e b ru ary . T he n e w d ep artm ent, w hic h

fe atu re s a d ed ic a te d a p plia n ce s h o w ro om o f p ro d ucts f r o m L G , S am su ng , G E, a n d H otp oin t, is

e xp ecte d t o b eg in it s e xp an sio n in J u ly 2 0 16 a n d c o ntin ue in to t h e f a ll. T he a n no unce m ent b y

J.C . P enne y s ig nals t h e r e ta ile r’s f ir s t a tte m pt in m ore t h an 3 0 y e ars t o t r y a n d m ake a d ent in t h e

U S$ 38 b illio n m ajo r a p plia n ce m ark e t. J .C . P enne y c le arly f e els t h at e xp an d in g t h e p ro g ra m me

beyo nd it s 2 2 t e st m ark e ts w ill y ie ld p osit iv e r e su lt s . T he m ove is a g am ble , b ut o ne t h at c o uld

p ay o ff h an d so m ely a s it s ig nals t h e f ir s t in a s e rie s o f e ffo rts t o p re se nt a u nif ie d h o m e

dep artm ent t h at c a n b ols te r b oth o nlin e a n d b ric k-a n d -m orta r s a le s d ow n t h e lin e .

Sourc e : “ J C P enne y ” b y S am H ow zit , lic e nse d u nd er C C B y 2 .0

J .C . P en ney e n te rin g a c o m petit iv e m ark e t

U S m ajo r a p plia n ce s s a w v o lu m e s a le s g ro w 4 % in 2 0 15 a s m ore t h an 6 0 m illio n u nit s w ere s o ld

t h ro ug h r e ta il c h an ne ls . J .C . P enne y e nte rs a m ark e t t h at h as s e en d ep artm ent s to re s’ o nce

d om in an t s h are o f s a le s d is p la ce d b y n o n-g ro ce ry s p ecia lis ts a n d in te rn e t r e ta ilin g . H om e a n d

g ard en s p ecia lis t r e ta ile rs s u ch a s L o w e’s a n d T he H om e D ep ot m ad e u p 3 4 % o f v o lu m e s a le s

fo r m ajo r a p plia n ce s in 2 0 15 , t h e la rg est o f a n y c h an ne l. O n t h e o th e r h an d , t h e s h are h e ld b y

d ep artm ent s to re s h as f a lle n t o ju st 1 4 % o f v o lu m e s a le s in 2 0 15 , d ow n f r o m 2 3% in 2 0 0 5. N ew ly

in sta ll e d C EO M arv in E llis o n – w ho h as le d J .C . P enne y s in ce A ug ust 2 0 15 – is w ell p osit io ne d t o

h e lm t h e c o m pan y’s f o ra y in to a p plia n ce s, d ra w in g o n h is e xp erie nce a s a n e xe cu tiv e w it h T he

H om e D ep ot, n o w o ne o f t h e la rg est r e ta ile rs o f m ajo r a p plia n ce s in t h e U S.

The m ove t o s e ll m ajo r a p plia n ce s w ill p it J .C . P enne y in a m ore h e ad -to -h e ad b attle w it h S ears ,

th e h is to ric U S le ad er in m ajo r a p plia n ce s s a le s. T he t w o d ep artm ent s to re s h ave lo ng s e rv e d a s

d ual a n ch o rs f o r m an y m alls t h ro ug ho ut t h e U S. E nte rin g t h e m ajo r a p plia n ce s m ark e t w ill

p ro vid e J .C . P enne y w it h a n a d dit io nal a ve nue t o d ra w c o nsu m er t r a ffic f r o m it s s tr u g g lin g

co m petit o r. W hile J .C . P enne y h as m an ag ed t o t u rn s a le s a ro und in r e ce nt y e ars , S ears h as

co ntin ue d t o f lo und er, lo sin g s a le s t o c o m petit o rs a n d c lo sin g s to re s a s it a tte m pts t o s ta ve o ff

f u rth e r lo ss e s.

A pplia n ce s e xp an sio n o n ly o n e p art o f t h e s tr a te g y

The m ajo r a p plia n ce s m ark e t is o nly o ne c o m pone nt o f J .C . P enne y’s a tte m pt t o r e vit a liz e s a le s

in it s h o m e d ep artm ent. T he r e ta ile r a ls o a n n o unce d in it ia tiv e s in w in d ow c o ve rin g , h o m e

fu rn is h in g s, a n d f lo orc o ve rin g . T he se a n no unce m ents in clu d e a p ilo t p ro g ra m me w it h A sh le y

Fu rn it u re – t h e le ad in g h o m e f u rn is h in g s b ra n d in t h e U S b y r e ta il v a lu e – t o s e ll it s S ig natu re

D esig n c o lle ctio n. T hro ug h t h e se in it ia tiv e s, J .C . P enne y h o p es t o p re se nt a m ore u nif ie d h o m e

dep artm ent t h at c a n d riv e a d dit io nal t r a ffic a n d c a p it a lis e o n e xp ecte d g ro w th in t h e U S h o usin g

m ark e t – w hic h is f o re ca ste d t o h e lp p ush h o m e a n d g ard en s a le s u p b y 1 0 % in c o nsta n t v a lu e

b y 2 0 20.

N ew h om e s tr a te g y c o m ple m en ts b ro ad er in it ia tiv e s

S earc h b y k e yw ord G O ALL

R ya n T u ttle

C onsu lt a n t - S erv ic e s &

P aym ents 7/14/2020 Analysis | Passport

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The g ro w in g p re se nce o f b ig t ic ke t h o m e it e m s in a s h o w ro om s e ttin g in te g ra te s w ell w it h r e ce nt

co m pan y in it ia tiv e s t o m od ern iz e t h e f a ce o f J .C . P enne y t h ro ug h in ve stm ents in o m nic h an ne l

re ta ili n g a n d c u sto m er lo ya lt y . P ro vid in g a p plia n ce s f o r s a le s b oth o nlin e a n d in s to re s s h o uld

h e lp d riv e a d dit io nal t r a ffic t o t h e r e ta ile r, w hile J .C . P enne y’s s to re c a rd a n d c o -b ra n d ed

p ers o nal c re d it c a rd s h o uld b ene fit a s c o nsu m ers s e ek f in an cin g f o r la rg er p urc h ase s. W hile it

r e m ain s t o b e s e en if J .C . P enne y’s p ush in to m ajo r a p plia n ce s w ill h e lp it d riv e s a le s h ig he r, t h e

re ta ile r’s d ecis io n t o e xp an d t h e p ro g ra m m e a ft e r a s u cce ssfu l p ilo t d oes s u g gest t h at

m an ag em ent f e els t h at it c a n u se h o m e d ep artm ent a s a s p rin g b oard t o h e lp t h e b ra n d c o ntin ue

to r e g ain it s lo st s tr e ng th .

Fo r f u rth e r in sig ht, p le ase c o nta ct R ya n T u tt le , R ese arc h A naly st, a t:

r y a n .t u ttle @ euro m onit o r.c o m , y o u c a n f o llo w h im o n T w it te r @ rlt E M I .