The Retail Industry

TheRetail Industry

Competitionin the world today is a phenomenon inevitable in the world.Organizations engage in businesses, and these enterprises there isfierce competition among the institutions. In a bid to analyze andunderstand the competitiveness of business among organizations,competitive models are essential. The competitive models help a greatdeal to give a vivid picture of the competitive world of business.There are five competitive models, and one is the existence ofcompetitive rivalry between suppliers. In competitiveness andrivalry, the ability of an institution, to compete and provide bettergoods and services, is vital. Here focus is on the supplier power,this is often the look at how the suppliers influence the marketprices. The number of vendors, their product uniqueness and theirgeneral cost of supplies .J C Penny retail deals with a lot ofsuppliers thus the competitive rivalry between suppliers is critical.Another force is the threat of new entrants to the market. J C Pennyas a retail industry has to overcome or deal with this aspect becausewith new entrants government policies come in handy with a lot oftaxations too. The bargaining power of the buyers is another force,here the customer is assessed of in terms of how the consumers caninfluence the prices. When the business has a few number of clients,they can easily dictate the prices and vice versa(Larson).Lastly, the threat of substitute goods often involves a newtechnology arrival and how an organization can use it to maximizeprofits.

Changesin the macro-environment often impact either positively ornegatively. Some of these changes are majorly external and oftenuncontrollable, and organizations do not influence them. Thisuncontrollable factors could be political, legal, demographicfactors, and sometimes technology. Sometimes this macro-environmental changes could include cultural changes, competitor’sneeds, and trends in society. Politics can affect the businesspositively or negatively through policies created. The weather canimpact the by promoting sales of clothes and in other times, theweather cannot allow purchase of some goods thus affectingnegatively. Cultural change may impact negatively or positivelythrough changes in dressing or eating habits(Kippen, Quin and Ring).Competition is also another factor that influence results andimproved yields or reduced yields.

Itis a strategic group of the industries as it provides intensecompetition and provides a variety. The J C Penny has very manystrategic groups which include coffee shops, salons and photo studiosamong others. These groups work hard as they specialize in providingdifferent goods and services. This kind of healthy competitions helpsto promote stability and profit making. Dynamism in the businessworld today is essential. The organizations in this case try look atthe trends in modernity and trends in culture. The organization’srole is to ensure that it comes to terms of these new trends andtechnology in trying to maximize profits. Dynamism has led toeventual and gradual change in J C Penny since its inception tomodern day.

Theindustry is in the mature growth phase stage. In this stage, theindustry faces more fierce competition from other sectors. It is thephase that often characterized by an above average growth althoughthe industry does not grow at an accelerating pace again(Weebly).In this stage competition from other sectors, can lead to improvementin production, innovation and creativity can also come about. Thisstiff competition can keep an industry in business or kick anindustry out of business depending on how the industry is can copeand compete. This stage defines and shapes the future of anorganization.

Industriesare becoming global as a result of its dominance and stake in themarket. The J C Penny is an example of such sectors. Globalization ofindustry has led to a lot of diversity at workplace. People come fromdifferent backgrounds, race, and ethnicity among other differences.The differences bring about group cohesiveness teamwork towards therealization of industry goals. Diversity also brings about ideas fromdifferent people, increases competition, and industry productions. Interms of the national context the industry has covered most states,and the business is doing well. The national context has an advantagein the global market because the company garners a lot of profits(Bartholomew, James and Moody).National context enables the company to compete and earn a place inthe world market because of the income. Conclusively, organizationsand business are critical in our society today.

WorksCited

Bartholomew,Devon, et al. &quotJ.C. Penney Company, Inc. Equity Valuation, andAnalysis,&quot 1 June 2007. mmoore.ba.ttu.edu.1 January 2015&lthttp://mmoore.ba.ttu.edu/ValuationReports/Summer2007/JC-Penney.pdf&gt.

Kippen,Matthew, Kathleen Quin and Lawrence J Ring. &quotJCpenney- Anew Spinon an Old Idea,&quot 2013. babson.edu.9 January 2015&lthttp://www.babson.edu/executive-education/thought-leadership/retailing/Documents/jcpenney-new-spin-on-old-idea.pdf&gt.

Larson,Mark. &quot2013 Retail Industry Outlook Survey,&quot 2013.kpmg.com/us/retailindustry.9 January 2015&lthttps://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/retail-outlook-survey-2013.pdf&gt.

Weebly.&quotIndustry Overview,&quot 2010. weebly.com.1 January 2015&lthttp://nathanherron.weebly.com/uploads/6/9/2/0/6920961/fall_2010_aaf_case_study_secondaryresearch_report.pdf&gt.