Will JC Penny Maintain Comparative Advantage In The Future? Why or Why Not.
JC penny will maintain a competitive advantage in the short term, but in the future, it will depend on its strategies to the clients. This is because comparative advantage lies in hand of the successes of the company. It is evident that its history gives it a basis of the customers believing in it. This is in terms of its production quality, and also it’s low pricing. The loyalty that the company has from its customers ensures that it maintains the competitive advantage despite experiencing the normal failures in the market. The fact that JC penny adapts new strategies to sell its products makes it even easier for the maintenance of the competitive advantage. With the adoption of a new policy of offering private brands with a suitable pricing mechanism, then it outdoes the other companies, and this becomes the winning position of the company (Betz). The company ability to control the stock supply and demand ensures it maintains the advantage too.
However, the competitive advantage, as said earlier, will not last forever because the company has some of its failures. These might include: changing different brand offers, having inconsistent pricing mechanisms, partnerships and also logos of the company. With the change of management of the company, then different policies such as the target market, the customer service and communication strategies change. If they are inclined to the negative side, then the company’s comparative advantage is pushed to a lower level (J. C. Penney Company, Inc.). This is because these policies hurt both the production and consumption of its products. If these failures are not dealt with early enough then in the future, the comparative advantage will not be maintained. On the other hand, if they are dealt with at the right time, then it will be maintained since only successes of the business will be attained.
Works Cited
Betz, Brandy. “Does J.C. Penney Have a Competitive Advantage?” The Motley Fool, 16 Apr. 2014, www.fool.com/investing/general/2014/04/16/does-jc-penney-have-a-competitive-advantage.aspx. Accessed 2 Feb. 2020.
- C. Penney Company, Inc. “JCPENNEY ANNOUNCES PLAN TO OPTIMIZE RETAIL OPERATIONS, ADVANCE GROWTH AND DRIVE PROFITABILITY.” GlobeNewswire News Room, 24 Feb. 2017, www.globenewswire.com/news-release/2017/02/24/927447/0/en/JCPENNEY-ANNOUNCES-PLAN-TO-OPTIMIZE-RETAIL-OPERATIONS-ADVANCE-GROWTH-AND-DRIVE-PROFITABILITY.html. Accessed 12 Feb. 2020.