The J.C. Penney Case Assignment Example | Topics and Well Written Essays - 500 words

The J.C. Penney Case - Assignment Example Having said the above, it would also be stressed that the fact that the components of the new business model worked together did not necessarily mean that they could achieve the goal for which they were set. It cannot also be said that the components could lead to the expected results of the company. The lapses came because there were some key components that were missing from what was institutionalized. More specifically, the new business model had eliminated the role of customers as there was no market research leading up to the implementation of the model. Meanwhile, customers have been identified as very important stakeholders in the success of any business model (Ofek & Avery, 2012).One major deficiency that can be seen from the administration of Johnson is that its business model was totally disjointed from its pricing strategy. As a matter of fact, the aggressive sales expert team that was institutionalized as a result of the new business model could have functioned best if th ere were specific promotions they were championing. The business model was however brought in place after the old pricing strategy which was the high-low pricing strategy had been scrapped. This created a total disconnect between the business model and the pricing strategy because there was virtually no promotion in place for the sales experts to pursue. Meanwhile, the customer base of the company had repeated given signal to the fact that it preferred to have promotional sales in place.