Question
JCPenney has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. It
JCPenney has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. It has opened new stores in Europe, Asia, and Latin America. In each case, the firm was aware that it did not have sufficient understanding of the culture of each country that it had targeted. Consequently, it engaged in joint ventures with local partners who knew the preference of the local customers.
a. What comparative advantage does JCPenney have when establishing a store in a foreign country, relative to an independent variety store?
b. Why might the overall risk of JCPenney decrease or increase as a result of its recent global expansion?
c. JCPenney has been more cautious about entering China. Explain the potential obstacles associated with entering China.
Step by Step Solution
3.39 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
a JCPenney will have great advantage if it opens a store through a joint venture as it will get a ex...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Document Format ( 2 attachments)
609aedc0f0bcb_31137.pdf
180 KBs PDF File
609aedc0f0bcb_31137.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started