Business Strategy for JD Sports

This report discusses the business strategy of JD Sports, a leading sportswear brand in the UK. It covers macro environment analysis, capability assessment using the McKinsey 7S framework, competitive analysis using Porter's Five Forces, and strategic planning using the Ansoff matrix. The report also explores JD Sports' mission statement, long-term goals, and current macro environment. It concludes with recommendations for a strategic management plan.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Section 1: Macro environment analysis...........................................................................................3
Mission statement & Long term goals........................................................................................3
Current macro environment of JD sports....................................................................................3
Section 2: Capability........................................................................................................................5
Assessment of internal stability by use of McKinsey 7S framework.........................................5
Evaluation of strategic capabilities by use of TOWS matrix......................................................7
Section 3: Competitive analysis.......................................................................................................8
Porters five force analysis...........................................................................................................8
Ansoff matrix and PORTERS Generic strategies.......................................................................9
Section 4: Strategic plan................................................................................................................10
Strategic management plan.......................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategies are one of the very important aspects that can help in achieving of high growth
and profitability to an organisation in a limited period of time. With the growing amount of
competition organisations have to focus more on gaining a strategic advantage and
competition nature so that they can survive in the market. Present report is based on JD sports
that are one of the leading sportswear brands of UK (Bohari, Hin. and Fuad, 2017). It is a
retail company based in England and is listed on the London stock exchange. There are
32,215 employees that are part of this organisation. They are having a strategic objectives of
achievement of larger markets hare and expand themselves to new areas where they are
presently not having any presence for this there is use of some of models and frameworks for
planning of various strategies & tactics to achieve such objectives. Use of models such as
PESTLE, Porters five force, porter’s generic strategy, for formation of a business plan so that
further objectives can be achieved objectives.
TASK 1
Section 1: Macro environment analysis
Mission statement & Long term goals
 Mission: The mission statement of JD sports is “To be UKs one of the best sports fashion
retailer”
 Long term goals: there are certain long term goals that are to deal in huge variety of
products and provide quality products to their customers.
Current macro environment of JD sports
PESTLE analysis is a tool that is used for purpose of assessment of different factors that are part
of the external business environment and are impacting the functioning of a organisation
both in a positive and negative manner (Drnevich, . and Croson, 2013).
Political Factor: It consists of the factors relate to political stability of the country in which a
organisation is functioning.
Positive impact: There have been increase in the political stability and it has lead to increase
in the growth of retail industry of UK that is leading to a positive impact on JD sports.

Negative Impact: There have been increased in pricing regulations and wage legislations as
thee has to be minimum wages that have to be paid to employees. It has lead to increase in
cost of JD ports.
Economic Factor: This is a factor that consists of issues such as exchange rate, deflation rate,
unemployment rate that has impact on functioning of JD sports as discussed below:
Positive impact: With the increase in rate of inflation there has been reduction in cost of
products and increase in purchasing power of people that has lead to enhancing of sales for JD
sports (Groverand Kohli, 2013).
Negative Impact: There has been a negative impact on JD sports as there has been impact on
the efficiency if financial markets and it is leading ti raise capital ratio in the local markets.
Social Factor: It is a factor that is related with social behaviour of people such as lifestyles
changes, trends of society etc.
Positive impact: In case of JD sports manager is having focus on quality products as thee has
been complete shift in the way people are willing to perceive value of products.
Negative impact: There has been change in the entrepreneurial spirit and for the broader view
of society as people are developing more preference for quality products they are ready to pay
high prices for such products
Technological Factor: Technology is changing very fast and JD sports can utilise the
technology to increase their present market share (Huang, 2019).
Positive impact: With enhancement of technology there has been more movement towards
automation of process of manufacturing.
Negative impact: There is a requirement to make high amount of investment and it leads to
bearing equivalent amount of risk by JD sports.
Environmental Factor: there are many environmental factors such as climatic conditions that
impact the functioning of a organsitaion.
Positive impact: There ahs to be adequate attempts made so that there are no harm made to be
overall environment that gain leads to measures that so going to increase the overall cost for
JD sports.
Negative impact: There has been frequent changes in weather conditions that has resulted to
lot of rapid changes that has to be adopted in JD sports that leads to high resistance from their
employees and other different stakeholders.

Legal Factor: Legal factors consist of regulations, laws that are formulated by competent
authorities of a country.
Positive impact: Lot of regulations implemented in JD sports lead to high regulations and
more rigidity in the functioning of JD sports (Kochkina, 2019).
Negative impact: There have been continuous changes made in such legal laws that lead to
changes in overall policies for JD sports.
Section 2: Capability
Assessment of internal stability by use of McKinsey 7S framework
Hard s
Strategy Strategy of JD sports is to use some athletes
and high promotion on printed media and
electronic media for achievement of high
market share (Murthy, 2012). In present
scenario, for more expansion there is a
requirement of use of more attractive
strategy in order to promote their products
in new market and new locations
(STRATEGIC CAPABILITIES. 2019).
Structure JD sports are operating from basically UK,
they are having a basic centralised type of
structure and it is suitable for this
organisation to use this structure only for
their further new locations. Reason behind
this is that there must not be much
investment that has to be done on opening
of physical stores instead e commerce as a
tool must be used for purpose of
approaching to new markets in different
countries and test the response of customers.
If there is not much positive response then

it’s better to withdraw without much higher
amount of investment.
Systems System is related to way business is being
done and further organised. It is basically
organisational cart of a particular
organisation. In case of JD sports this brand
is following a functional organisation
structure that is there is complete division
based on various functions such as
production, selling, distribution, marketing,
research, finance etc. It helps in clear
differentiation of what so the basic function
of one particular department.
Soft S
Style Style basically represents the way c
organisation is being managed by the top
authorities in a organisation. There are
various types of leadership styles that can be
used for new strategy implementation in JD
sports there must be use of democratic and
participative style of management so that
employees will be give more chance of
presenting their views and opinions related
to various new decisions that are being
made by the top authorities of this
organisation.
Staff Staffs is a element that consist of the type
an number of employees required on a
organisation. In JD sports for
implementation of their new strategy there
will be requirement of more competent staff

for this new hiring and recruitment process
is required by the human resource
department in the present context.
Skills Skills is regarded as the ability of
employees, their competencies and
capabilities in case of change in
organisation such as when there is new
market which is being approached there is a
complete shift in requirement of different
types of skills for JD sports.
Shared values It represents the overall value that has to be
communicated to their final customers. It is
the responsibility of the management in JD
sports to make sure that in the new markets
there is increased value that is being offered
to customers.
Evaluation of strategic capabilities by use of TOWS matrix
 Tows matrix is basically used for the purpose of formation of certain attractive strategies
for JD sports. It is formed on the basis of use of SWOT analysis as a tool for detailed
analysis of business organisations.
Opportunities:
There is lower inflation rate
that will help in ore stability
in the market for JD sports.
There is new technology
adoption as a attractive
opportunity that can be
adopted by JD sports to
practise differentiated
pricing strategies in new
Threats:
There is a shortage of
skilled labours in the global
markets that is leading to a
negative impact on the
profitability of JD sports.
There is a intense
competition that is being
faced by JD sports based on

markets prices.
Strength:
There is a base of reliable
suppliers for JD sports.
They have strong
distribution network.
SO: The strong distribution
network of JD sports and the
new markets technology
both can be used together
for expansion of present
market share for JD sports.
ST: The economies of scale
as a tool can be used for
reduction of threat and the
strong base of reliable
suppliers can be Further
used for achievement of
higher sales by JD SPORTS.
Weakness:
There is no expansion
beyond the core business of
JD sports that is they are
only focussing on just the
sports ware with some
limited brands.
The overall organisational
structure of JD sports is
compatible with their
present business model. If
any future changes will be
made then it is not going to
support such modifications
in long term.
WO: There is lower
inflation rate on some
countries so this can be
combined with their
weakness of expansions
beyond their core business.
So, they can make
expansions across more
sports related products.
WT: There can be further
changes made in the
structure of organisation by
implementation of a
divisional structure along
with the functional
structure. So both of these
combined together and deal
with the high amount of
competition that is a big
threat for JD sports so that
its negative impact can be
somewhat reduced.
Section 3: Competitive analysis
Porters five force analysis
Porters five force is a strategic framework that is used for making some of strategic
decision by various organisations according to five major forces that are present in the
macro environment in which these businesses are functioning. In context of JD sports this
analysis is discussed below:

 Competition in the industry: If there is presence of high competition among the existing
players in the industry then it leads to driving down of proves a reduction of overall
profitability (Policy, 2016). In JD sports, operates in a competitive environment and it
may lead to affecting of long term profitability of JD sports.
 Threats of the Substitutes Products: If any other competitor is able to provide the
products like JD sports with similar prices and high value then it will lead to threat of their
existing customers substituting the products of JD products with other products of
competitors. So, JD sports have to make some differentiation so that their present
customers are not easily able to shift or substitute from their products.
 Powers of the suppliers: bargaining power of suppliers is related with the suppliers
having dominant position in the external market. Any powerful suppliers are negotiating
their power to achieve prices according to their willingness. JD sports have to tackle such
bargaining power and make efforts to reduce to some extent. For this they can build up
efficient supply chain measures for development of a base of dedicated suppliers that can
help them in long term survival.
 Powers of the customers: Bargaining power of suppliers is related with putting pressure
on the organisation to provide them products at highly competitive prices. So, JD sports
have to make their customers understand that if they are charging prices then they are
providing higher value according to those prices. So, based on the variety and quality of
products they must enhance the satisfaction level of their customers.
 Potential new entrants: This factor is related top the new start ups and business that
could enter the industry to which JD sports belongs (Verbeke, 2013). It is very difficult for
any new organisation to enter the sports industry and provide competition to an
established brands such as JD sports. As it is very difficult for achievement of economies
of scale in usch a short period of time and compete bon the basic of quality and price.
Ansoff matrix and PORTERS Generic strategies
Ans off matrix: Ans off matrix is used for the purpose of use of various approaches for
growth and selection of a particular strategy to be implemented in the occurs of business. In
JD sports for achievement of strategy of expanding in different parts of world there are some
below discussed aspects of ans off matrix that can be studied in detail:

 Market penetration strategy: In this JD sport will have to focus on their existing products
and they can expand in their present markets only (Varelas,. and Georgopoulos, 2017).
This strategy is not suitable in present scenario, as JD sports are willing to target new
locations of market.
 Product development strategy: In this strategy there will be new products that will be
added to the present product range but there will be launching of product in the existing
markets only. It is also not suitable according to the present scenario of JD sports as they
are willing to target some new locations.
 Market development: In this strategy there will be existing products that will be launched
in the new market so, there has to be new brands that has to be approached by JD sports
apart from that there is a requirement of high promotion techniques for this particular
strategy.
 Diversification strategy: This is also a very attractive strategy that can be used by JD
sports as in this there will be two aspects that has to be focussed, such as new product
development and also new markets will be used for purpose of achievement of objectives
behind their strategy of market expansion (Sirén, and Kohtamäki, 2016).
Section 4: Strategic plan
Strategic management plan
Objectives: The main objective in the present scenario for JD sports is to open new stores and
expand in various location of world where they are not having any presence in the present
situation.
Time period: There is a time period of 5 years that has been set up by this organisation for
achievement of overall objectives.
Tactics: There are some of the tactics based on marketing mix analysis that will be used ny
JD sports in order to achieve their above mentioned objectives
 Produc
t
JD sports is dealing in various sports wear range that can be own by their
customers casually according to their need. Many of the products are of
highly popular brands such as Nike, Puma, Adidas. They are working with
global suppliers across world and the wide range of products will help them
in expanding to various parts of world.

 Price The process of JD sports are based on their overall cost associated with each
product category, they have lower cost has they acquire products in large
quantities. So, they can have competitive process that can help them in
surviving with other major existing competitors in the market.
 Place Various places where JD sports can have their presence are high streets, e
commerce websites, shopping centres, outside locations etc (Oldman, and
Tomkins, 2018). In the new countries where JD sports is willing to enter, they
can use any of these methods according to their investment and target market of
customers.
 Promot
ion
JD sports can use above lien promotions and below line promotions. They
can use TV, Newspaper radio, magazines, and newspapers. They can also
make efforts in opening up of clubs so that young sports enthusiast can feel
motivated to be a part of these clubs and it will lead to promotion of brand
for JD sports.
 Implementation: Management of JD sports will be executing the above tactics for
achievement of their objectives for this there will be financial requirement and for this
below discussed budget has been formed by the marketing mangers.
Evaluation: after implementation of the above plan there has to be monitoring and
evaluation of the progress made in achievement of the overall objectives by the
management of JD sports at the end of the time period stated in this strategic plan.


CONCLUSION
From the above report it can be said that strategies are helpful for every organisation for
their long term survival and achievement of certain laid down objectives. There are certain
tools such as PESTLE, TOWS, porter’s generics strategies that help in development of ideas
and profitable strategies for future growth of certain business organisations. All these help in
development of various business plans for a definite time period and their achievement in due
course of business functioning.

REFERENCES
Books and Journals
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space, 9(1).
Drnevich, P. L. and Croson, D. C., 2013. Information technology and business-level strategy:
toward an integrated theoretical perspective. Mis Quarterly. pp.483-509.pp.1326-1358.
Grover, V. and Kohli, R., 2013. Revealing your hand: caveats in implementing digital business
strategy. Mis Quarterly, pp.655-662.
.
Huang, Y., 2019, December. Strategic Environment Analysis of Logistics Enterprise based on
SWOT-PEST-Michael Porter's Five Forces Model--Taking SF Express as an Example.
In 2nd International Symposium on Social Science and Management Innovation (
Kochkina, N., 2019. DYNAMICS OF PESTLE FACTORS OF UKRAINIAN MARKET
ENVIRONMENT. Sustainable development under the conditions of European
integration. Part I, p.250.
Murthy, V. P., 2012. Integrating corporate sustainability and strategy for business
performance. World Journal of Entrepreneurship, Management and Sustainable
Development. 8(1). pp.5-17.
Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy
and context. Routledge.
Policy, P., 2016. What is pestle analysis.
Sirén, C. and Kohtamäki, M., 2016. Stretching strategic learning to the limit: The interaction
between strategic planning and learning. Journal of Business Research. 69(2). pp.653-
663.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the modern globalized
hospitality sector–the case of a Greek tourism destination. J Tour Res, 18, pp.121-131.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
STRATEGIC CAPABILITIES. 2019. [Online]. Available through:
<https://managingresearchlibrary.org/glossary/strategic-capabilities>