Ron Johnson's Competitive Rivalry
CEO Ron Johnson came into the company with retailers like Macy’s and Kohl's overcoming his company in sales and profits. “Competitive rivalry is a force examined how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each is capable of doing”,says Business Dailynews.com (Arline,2015) Ron had to determine what he could do in order to turn the business around and put JCPenney back on top and in the race for sales.. The company had too many brand names to choose from. Johnson decided to decrease the number of brands and readjust the prices and sales on the brand names that were kept. This strategy that the Chief executive was putting into place was known as the threat of substitute products and services. Bargaining power of suppliers was a force that Mr. Johnson also studied.