External Factors

Penny's proposed new pricing strategy

The new Penny's proposed strategy is a revitalization strategy that is directed at the pricing procedures within the company. According to Penny, there should be a "Fair and Squire Every Day" pricing strategy. This new pricing strategy was not there initially. The transformations, which are also done by JC Penny's CEO Ron Johnson, are ambitious plans, which are geared at changing the phase of the company completely. According to Johnson, the 110-year-old store is to be transformed into a retail powerhouse, which resembles those of the twenty first century. He wants to create 80 to 100 stores within one store. These stores are perceived to be of high brands. There will be a "Town Square," where customers will be able to access a number of facilities and offerings as free ice cream and hot dogs (Mattioli, 2012).

The new pricing strategy is an...
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