Jcpenney Swot Analysis Paper

4 SWOT Analysis
In order to better understand JCPenney and its future, it is vital to take a closer look at the internal and external factors that affect the company. By identifying JCPenney’s strengths, weaknesses, opportunities, and threats, a strategy can then be created that will distinguish JCPenney from its competitors. Hopefully this analysis will provide insight into JCPenney’s falling sales and help establish goals for a turnaround.

4.1 Strengths
Even though JCPenney has been dropping in sales, they still have a number of strengths that may help the company survive. For one, Mike Ullman, a former JCPenney’s CEO, is back in his previous position. After being gone for two years, Ullman replaced Ron Johnson as CEO on April 8, 2014

They also have a strong supply chain: well diversified suppliers, compelling brands, point-of-sale technology, and effective cost and inventory management (Zacks Equity Research, 2012). Their improved website functionally, JCP Rewards program, and in-store Sephora departments are also key strengths to note.

4.2 Weaknesses
One of JCPenney’s most obvious weaknesses is their falling sales and liquidity problems. According to an article in USA Today, JC Penney saw a 32% decrease in sales during the 2012 holiday season compared to the year before (Hadley, 2013). However, this decline in comparable sales has underlying factors. Some of these include: decrease in popularity, changing business strategies, and lack of coupons.

Under CEO Ron Johnson, JCPenney abandoned promotional sales and strategized building stores within stores (“J.C. Penney almost,” 2014). Johnson’s radical plans turned out to be a complete bust and are the main cause of the huge sales drop. Williams, a former customer of JCPenney commented, “I would go back. I miss it. That was my go-to store for a long time, and then it changed” (“What’s next,” 2013). Many customers also share Williams’