JC PENNEY Harvard Case Solution & Analysis

JC PENNEY Case Solution

Question 01

Is the emergence of full-fledged Marketing channels on social networks sites by most major retailers inevitable? Why or why not?


In today's business dynamics, the trend of online shopping is increasing. The social media sites such as Facebook, Twitters, LinkedIn and MySpace play a significant role in the online shopping patterns. Most of the business nowadays have switched their businesses to online sites. The main reason for this switching is that through that the organizations would provide convenience the customers when delivering the product. Moreover, since the last few years, these popular social sites have enjoyed the fast growth which not only improves the business, however, also brings profitability in the company. However, mostly the young users aged from 18-33 are more addicted to the social networks.

The customersuse the social network sites to communicate with their friends and family. As per the research, it is evaluated that the high-tech communication systems provide a broad range of services to the customers. Through social networks the customers conveniently interact with theirfriends and families, playing games, sharing photographs as well as entertainmentfrom other social activities. The research shows that about 89% customersshare theirphotos on online sites, and just 18% of the people are involved in the online shopping trends. The companies have switched their  business practices to social networks sites as they observed that by these online networks the companiescater the large segment of customers which has increasedthe profitability of the business as well as improved the market share of the enterprise. JC Penney also considered Facebook as marketing channels as itbelieved that if the companies go for online networks, then they can easily interact with customers as well as provide them best possible service that they desire to achieve. Therefore, the marketers convince the customers to the social sites rather than the commercial ones.

The strategy of social network sites and full-fledged online marketing channels are the most innovative marketing strategies that the companies use to generate profits in the businesses. However, the advancement of technology also helps the companies to build theirstructure more efficiently and in future to reduce the cost of its process which would benefitthe firms as well as it would increase theirprofitability. When the social sites become the ‘run of the mill' which means the sites are readily available to everyone and people gets benefits from it, then the strategic benefit of the companies would belost. The customers believe that the availability of S-commerce and F-commerce option should be available in the social networks sites which would provide benefits to the customers.

Question: 02

Will social media sites be viewed by many manufacturers as a channel to sell their products directly to consumers?


 If we take the example of JC Penney, it switched its business operation to the social networks and became the number one retailer in the world that offers its entire catalog of merchandise on the social sites such as Facebook. The company also considered Facebook as a marketing channel which improved the profitability of the business in the online networks as compared to the commercial activities. Moreover, the company believed that it would generate more of its revenue from it e-commerce channel which is also known as a Facebook-based marketing channel. The company also found that this channel encourages social integration and contribution of the users as well as the customers of its shops. Furthermore, it also believed that by these networks, it would create a strong relationship with the customers as well as the retailers................

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