Second Thoughts About a Strategy Shift

Elie  Ofek; Jill  Avery

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Article | Harvard Business Review | December 2014

Second Thoughts About a Strategy Shift

by Elie Ofek and Jill Avery

Abstract

A retail guru attempts to reposition an established brand and introduce an entirely new pricing scheme. Early financial results from the strategic shift are not favorable. Based on the experience of U.S. retailer J.C. Penney, the piece raises fundamental questions about repositioning retail brands and the ability to shift consumers to entirely new pricing formats. It further raises the question of when to declare that a new approach to the business has failed.

Keywords: brand management; Pricing strategy; retailing; leadership; Leadership; Price; Product Marketing; Brands and Branding; Retail Industry;