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J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson

by David Robinson


The case study is set in 2012 and 2013. J.C. Penney is a venerable American institution, one of the last surviving department store chains. But it has suffered from 'profitless prosperity'--good 'top line' (revenue) but great difficulty in bringing much to the 'bottom line' (net income). Additionally, competition from specialty retailers has led Penney's to abandon certain lines of business (such as automotive repair) and face intense competition in other categories (wear-to-work clothing and household goods). The case study discusses the hiring of Ron Johnson from Apple in 2011 and the aftermath of Johnson's new strategy of a 'curated collection of 100 brands' and change in pricing strategy from frequent sales to everyday low pricing. The case study also shows the aftermath of Johnson's strategy which was not positive.


Details

Pub Date: Jun 29, 2014

Revision Date: Jun 23, 2014

Discipline: Marketing

Subjects: Retail, Leadership, Marketing, Consumer behavior, Consumers, Market positioning, Pricing, Pricing strategy

Product #: B5808-PDF-ENG

Industry: Retail trade

Geography: United States, Texas

Length: 14 page(s)


Berkeley Haas Case Series
Berkeley Haas Case Series The Berkeley Haas Case Series is a collection of business case studies written by faculty members at the Haas School of Business. Cases are conceived, developed, written, and published throughout the year, on subjects ranging from entrepreneurship and strategy to finance and marketing. Each case includes a teaching note for use in the classroom.

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Berkeley Haas Case Series

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The aim of the Berkeley Haas Case Series is to incite business innovation by clarifying disruptive trends and questioning the status quo.

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