An Innovation Failure at JCPenney PDF

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Running head: DISCUSSION QUESTION

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Discussion Question Name Institution Instructor Course Date

DISCUSSION QUESTION

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Discussion Question: An Innovation Failure At Jcpenney: Its Causes And Consequences Do the innovations implemented by JCP sound interesting to you? Would you shop at a store with these features? Why or why not? Use examples and illustrations from your personal experience. Do the innovations implemented by JCP sound interesting to you? It may be considered unique that the vision of Ron Johnson, who reinvented retail at apple Inc. and now the former CEO at JCPenney, was to establish a youthful new image at JCPenney by incorporating innovative strategies that appeal to customer needs around and within the boutique store. JCPenney established a branded boutique store coupled with customized places to sit and have a cup of coffee that is quite good. However, the innovation does not sound interesting because other companies such as Bloomingdales and Nordstrom have a similar setup, and the invention greatly missed stakeholder and customer considerations. Ron Johnson was quite inventive in the first place, but the pricing strategy was vague. The strategy of removing the markup price culture in the company and introducing discounts to a pricing strategy of everyday low prices was not impressive from a customer point of view. This policy of discounting was coupled with heavy coupons and heavy promotions. The dubious pricing policies also proposed more interesting products to be offered at reasonable prices at all times. Such product lines included Joe Fresh and Martha Stewart. However, there was a problem with the pricing strategies from a customer point of view. The inventive discounts, coupons, promotions, and generally reasonable pricing were being enacted on products customers were used to for a long time, rather than brand new merchandise. Brand new merchandise would be surprising for the customer, and

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this is why the strategies did not fare well with the JCP customer bargain. As a result, the sales fell drastically, and traffic declined steeply in the store and the ultimate loss of revenues. It is not surprising to discover JCP's steady return to the traditional marking of prices, lots of price-focused ads, and intense promotions. All this indicates a focused strategy with poor execution. In normal senses, re-positioning a low-end bargain store to a high-end style store requires careful planning and execution of strategies. Leaders in such scenarios need to take time and consider all parameters before proposing changes. In contrast, CEO Johnson rushed to make changes before planning. In 2012 within weeks of the month of January, the staff had already planned new changes such as a new logo, new advertising strategies, and new pricing strategies and was already presenting them to investors. The company was also announcing a new design team that would work on such changes by creating a collection for it. In any execution, including school assignments, research is fundamental before completing any assignment. Research helps plan the whole paper by considering all parameters while differentiating fake from original sources. Away from this simple rule, Johnson rushed to come with a new strategy and implement it into the core business of the company without performing small scale tests. The inventions expose dishonest leadership diaphanously in the company. Ron Johnson is tasked to act with utmost faith in style with good business practices and good products. The CEO is openly aware of a mismatch between the strategy he is implementing and other aspects such as business executives, customers, sales policies, product lines, and marketing. The mismatch comes in because Johnson wants to equate the retail strategy he implemented once in apple to the situation at JCP. In normal circumstances, needs vary among businesses and individuals. The difference between needs is determined by factors existing in the current business operating environment. Johnson wants to do what he had done at Apple. Inc., in a different business setting

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without considering factors such as the nature of the business, nature of products, customers, operating environment, and related factors. It is, therefore, not surprising that a mismatch is expected to occur. Would you shop at a store with these features? The above features were set to delight customers, which were good ideas, but the mistake was that the CEO assumed he knew what to delight customers with. This is why the features are not surprising enough for me to visit and shop. The process of delighting customers is very interactive and tricky. Most managers think customers want to see value in their strategies, but according to Hitt, Ireland, & Hoskisson (2014), what customers see as value is the main factor. The innovations set up at JCP are not new as companies such as Nordstrom having them. For instance, if I wanted a cup of coffee or a snack on a Saturday night, I would visit a nearby coffee shop, Starbucks or Donuts and take quality tea there. Therefore, the fact that other companies have the same strategies erases the uniqueness at JCP. Again, Johnson presents a destroyed business project that demonstrates dishonest leaders and poor execution of strategies. In a nutshell, the whole idea driven by Johnson raised questions following the mismatch between strategies with consistent manager decisions, products, and many more. As a customer possessing standard buying decisions, I would ask myself questions such as is the whole business idea flawed in the company? Is the business offering healthy products and why the company is dishonest in its operations? In every case, I ask myself questions, the probability of buying from the company diminishes.

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Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2014). Strategic management: Concepts: Competitiveness and globalization. Nelson Education. Harbin, J., & Humphrey, P. (2015). JC Penney and Ron Johnson: A Case of Failed Leadership: Lessons to Be Learned. Journal of the International Academy for Case Studies, 21(5), 95. Retrieved from https://www.academia.edu/download/47815791/jiacsvol21no5.pdf#page=87 Denning, S. (2013, June 24). J.C.Penney: Was Ron Johnson's Strategy Wrong? https://www.forbes.com/sites/stevedenning/2013/04/09/j-c-penney-was-ron-johnsonsstrategy-wrong/....