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Ron Johnson’s flawed strategy and his subsequent ouster as CEO of J.C. Penney recalls other major retail failures due to fatal marketing, strategy, and operational mistakes. Consider E.J. Korvette, F.W. Woolworth, or W.T. Grant.
More Which is a better price: $15.99 or $16.49? To answer this question, we have A/B testing and price optimization, but this approach doesn’t work all the time.
More A few months ago I reported on a visit to J.C. Penney and commented on my disappointment with the look and feel of the store. What I saw was CEO Ron Johnson’s new strategy. The basis of this strategy is a return to the roots of the company through its “Fair and Square Every Day” philosophy. The problem with this strategy is that it is, in the words of Wharton Professor George S. Day, an “inside-out” strategy instead of an “outside-in” approach.
More JC Penney’s CEO Ron Johnson has had a tough go at it. Stock valuation is down roughly 40% since the time Johnson took over. Customer sales are down 20% from last year. Some are calling for his resignation. But before we chant “off with his head” with the Twitterati, let’s see if we can’t help him find a way out of his quandary.
More To achieve results in business transformation, it is imperative to bring together subject-matter experts (SMEs) from different parts of your company who become your change leaders. Challenge them to use a clean-sheet-of-paper approach, or a so-called ‘green field’ approach, to develop a ‘genius’ solution. Read case studies of how.
More In Freshman Land, economic price optimization can be done with simple models and equations. But Freshman Land doesn’t reflect reality, and hence we have to move to the next level. We have to have the right mental model of demand.
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“If there is a Volkswagen Way, it is to be determined, diligent and attentive to detail, with a glint of ruthlessness.” VW…
More What would it be worth to you to have 300 excited, engaged professionals listening to your firm’s message and services while interacting…
More In the age of big data, sales velocity has become a metric for guiding pricing decisions. Pricing software vendors all cite sales velocity as an important factor in guiding pricing decisions. Fortune 500 and mid-tier firms alike are known to practice it. But what does velocity-based pricing mean? Why should sales velocity influence pricing decisions? How should firms use sales velocity to inform pricing? And are there serious pitfalls to this approach, or is it a sound business practice?
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