J C Penney Company's external environment would be studied with the PESTEL framework (appendix 1) for highlighting the sector's Political, Economic, Social, Technological, Environmental and Legal environment while the degree of rivalry in the Taiwanese market would be studied under Porter's five pressures analysis (appendix 2). Sector pressures such as the negotiating power of the buyer and also distributor, the risk of new entrants and also alternatives would be highlighted to recognize the level of competition.
Political Factors:
Political factors have actually played the most significant functions in the growth of Taiwan's J C Penney Company industry in the type of human source development, modern technology growth and also establishing up of institutes for transferring technology. In enhancement to these factors, a 5 year strategy for the development of submicron modern technology was initiated by the government in 1990 which consisted of advancement of labs for submicron advancement in enhancement to the above stated roles.
Economic Factors:
The fact that the J C Penney Company sector is going through an out of balance need and also supply scenario is not the only economic concern of the market. The excess supply in the sector is adhered to by a rate which is lower than the cost of J C Penney Company which has actually resulted in capital problems for makers.
Economic crisis is a significant issue in the sector given that it can trigger reduced production. Improvements in efficiency levels can lead to increased production which causes economic downturn once again because of excess supply and also reduced need causing closure of firms because of low profits. The J C Penney Company market has actually gone through recession thrice from 1991 to 2007 recommending that there is a high possibility for economic crisis because of excess supply and reduced profits of companies.
Social Factors:
Social factors have additionally contributed towards the development of the J C Penney Company market in Taiwan. The Taiwanese government has actually focused on human capital advancement in the industry via trainings targeted at enhancing the knowledge of resources in the market. The launch of the Semiconductor Institute in 2003 for training and developing talent is an instance of the social initiatives to enhance the industry. Although technology was imported, obtaining resources acquainted with the innovation has actually been done by the federal government. Social initiatives to enhance the image and also quality of the Taiwanese IC sector can be seen by the fact that it is the only industry which had actually properly built divisions of labor worldwide.
Technological Factors:
There are still some technical problems in the J C Penney Company market specifically as J C Penney Company makers in Taiwan do not have their own innovation and also still depend on international technological partners. The government's participation in the industry has actually been concentrating on altering the J C Penney Company industry to decrease this reliance.
Environmental Factors:
A general evaluation of the setting suggest that Taiwan is a complimentary area for J C Penney Company manufacturing as noticeable by the ease in ability expansion in the J C Penney Company industry. The fact that the area supplies producing capabilities better strengthens this observation.
Legal Factors:
The legal atmosphere of J C Penney Company has issues and chances in the type of IP legal rights as well as lawful contracts. A firm has the lawful protection to shield its intellectual property (IP), processing as well as modern technology which can raise the dependence of others on it. The J C Penney Company sector likewise offers a high relevance to legal contracts as obvious by the fact that Micron's interest in J C Penney Company may not appear because of the previous company's legal agreement with Nanya as well as Inotera.
PESTEL Analysis for J C Penney Company Case Study Analysis
