Analysis of JD Sports' Innovation Strategies

This assignment requires a detailed analysis of JD Sports' innovation strategies, including its use of market basket analysis to discover purchasing patterns, social media analytics to understand customer behavior, and management innovation to stay ahead in the sportswear market. The assignment also explores the impact of innovation on the sportswear industry, highlighting the importance of innovative ideas and strategies for success.

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Critique of innovation
strategy and practices
JD Sports
Student ID:
U1523921
U1526210
U1631944
U1618079

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We will cover:
 JD sports with having their access to huge capital, investing more on
innovative ideas.
 Employees are provided flexible workplace in order to motivate them in out
of the box thinking.
 Communication process is effective in the organization.
 Benchmarking is considered as source of innovation.
 Customer data also used as source of innovation.

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JD Sports mission and vision
 Mission-
"To be UK's best-known sports fashion retailer. To provide customers with a huge
range of products, a secure shopping experience, quality and services on huge
ranges of men's, women's and kid's trainers and footwear that 80% exclusive to
only JD.”
 Vision-
“To become the first choice retailer for branded premium menswear fashion in the
UK.”

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JD Sports strategic objectives and how it aligns
with their innovation strategy
 Strategic objectives:
 Increasing growth by promoting sportswear fashion.
Using trend setting to manipulate buying patterns.
 Acquisition of businesses to diversify the business portfolio.
As diversity in offerings will lead to wider scope for sales.
 Alignment with innovation strategy:
 Bringing new products at a cheaper price to the market.
 Persuasive advertising that connects through various media channels to reach the
target customer section.

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Leadership and culture
Leadership
 Leadership style practiced in Jd sports is democratic in nature.
 Feedback and opinion of the employees are given much importance.
 Effective communication with the internal stakeholders are considered.
 Their leadership style is mainly situational type of leadership.
 This helps them in having leadership approach according to the situation.
 However, it becomes difficult to change the leadership style frequently.
 Having motivated employees in place.

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Leadership and culture
Culture
 Organizational culture practiced in Jd sports is clan type of culture.
 Employee are having flexibility in the workplace.
 Collaboration, coordination and cooperation are the key values maintained in
the organization.
 Situational style of leadership also helps in having favorable culture.
 Clan culture helps in having motivated employees in place.
 However, directing the employees may be a difficult affair.

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Organizational structure
 Hierarchical Peter Cowgill
Executive Chairman
Brian Small
Chief Financial Officer
Martin Davies
Non-Executive Director
Andrew Leslie
Non-Executive Director
Heather Jackson
Non-Executive Director
Andy Rubin
Non-Executive Director
Head Office
management
Store managers/supervisors
Store sales assistants

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Sources of innovation
• JD is the market leader in
the United Kingdom.
• Having huge market share.
• Innovation is important to
maintain market leadership.
• Will help in gaining
competitiveness.
Advertising
• JD sports maintain
innovative approach in their
advertising strategies.
• Innovative advertising helps
to generate needs of the
customers.
• Innovation in advertisement
is being initiated according to
the taste and preference
pattern of the customers.
Source: Statista 2018
Celebrity
endorsements Accidents
• Emergence of the
social media.
• Social media
marketing constitute
a major chunk of
current business
scenario.
• It forced JD sports to
change their existing
market mediums.

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So how we search for innovation opportunities

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Old frame and new
frame

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Zone 1 Exploit and Zone 2 Explore
Zone 1 – Exploit
 Jd sports uses incremental
innovation to build upon their
products
Zone 2 - Explore
• Jd sports explores new opportunities to
indulge in R &D
• Jd sports has applied this in two ways:
Bought about fashion to sportswear and
applied market research to support decision

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Zone 3 Reframe and Zone 4 Co-Evolve
Zone 3 – Reframe
 Jd sports makes radical changes in the
product developmental process
 Engagement of all organisation
departments and partners in product
development
 The management becomes intra-
prenuers and mobilize the
organizational resources.
Zone 4 – Co- Evolve
• Jd sports comes out with out of the box ideas
and discover new products.
• JD Sports does not make use of this Zone. It
just uses member contribution to develop the
existing products

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JD Sports 4 Ps
• JD sports offers sports products such as track suits, jackets,
trainers and caps. JD offers JDX unlimited delivery app for
customers
Product
• Had ‘ LED WOW factor’ for innovation. adding LED tape helps to
deliver eye catching effect and helps in enhancing product
display and innovate store accent.
• Have innovative multichannel investment for innovation
• Personalised products e.g bags ( customers can write a message
on their products and get it delivered to customers)
Process
• First it marketed for sports minded people who had passion for
sports and now also it is marketed to people interested in causal,
trendy lifestyle e.g. premium lifestyle brands e.g. ArmaniPosition
• Earlier JD Sports followed a simple store channel concept.
However, now it offers its services on JDX app via smartphones
and online as well. JD from being a sports retailer now also is a
sponsor to soccer aid event exclusive retailer for UEFA Euro
2016 for kits.
Paradigm

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RACES
 The firm has access to a wide number of
resources because of its operations since the
past 40 years
 The stakeholders of the company are quite
supportive and will agree with any strategic
plans
 The marketing and expansion strategy is
consistent for innovation
 The innovation program if conducted well will
be quite effective
 The innovative proposal has the capability of
a competitive advantage
RESOURCES
ACCEPTABLE
CONSISTENT
EFFECTIVE
SUSTAINABLE

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Evaluation of JD’s innovation strategy
Jd sports are organized enough in stimulating innovation.
However, they should more initiate innovative product strategies.
Existing sources of innovation are effective enough.
But the sources are limited in nature and they should be more diversified.
Strategies are also limited in nature in generating innovative ideas.

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References
 Abbas, W.F., Ahmad, N.D. and Zaini, N.B., (2013) ‘Discovering purchasing pattern of sport items using market basket analysis’.
Advanced Computer Science Applications and Technologies (ACSAT), 2013 International Conference on(pp. 120-125). IEEE.
 Businesswire.com. (2018). Businesswire.com. [online] Available at:
https://www.businesswire.com/news/home/20170703005593/en/Global-Social-Media-Analytics-Market-Grow-CAGR [Accessed 20
Mar. 2018].
 Grant et al. (2015) Competitive advantage from innovation. Chichester: Wiley
 http://www.textilevaluechain.com/index.php/article/industry-general/item/1261-innovation-in-sportswear [Accessed 20 Mar. 2018].
 Huang, G., Shum, M. and Tan, W., (2017) ‘Is advertising informative? Evidence from contraindicated drug prescriptions’.
 JD Sports (2014). Annual Report and Accounts. [online] JD Sports, pp.1-123. Available at: https://www.jdplc.com/~/media/Files/J/Jd-
Sports-Fashion-Plc/reports-and-presentations/annual-report-and-account-2014.pdf [Accessed 9 Feb. 2018].
 JD Sports (2018). Annual report & Accounts 2017. [online] JD Sports, pp.1-177. Available at:
https://www.jdplc.com/~/media/Files/J/Jd-Sports-Fashion-Plc/reports-and-presentations/2017-annual-report-and-accounts-v1.pdf
[Accessed 7 Feb. 2018].
 JD Sports (2018). Careers. [online] Available at: https://www.jdplc.com/careers.aspx [Accessed 8 Feb. 2018].
 JD Sports. (2017). Annual Report and Accounts. [online] Available at: https://www.jdsports.co.uk/ [Accessed 4 Feb. 2018].
 Jdplc.com. (2018). Company Information. [online] Available at: https://www.jdplc.com/company-information/board-of-directors.aspx
[Accessed 7 Feb. 2018].
 Jdsports.co.uk ,2018. [online] Available at: https://www.jdsports.co.uk/ [Accessed 20 Mar. 2018].
 Retailtechnology.co.uk. ,2018. JD Sports adds accent lighting wow factor | News | Retail Technology. [online] Available at:
http://www.retailtechnology.co.uk/news/4659/jd-sports-adds-accent-lighting-wow-factor/ [Accessed 20 Mar. 2018].
 Statista. (2018). Statista. [online] Available at: https://www.statista.com/statistics/438863/jd-sports-fashion-stores-by-brand/
[Accessed 20 Mar. 2018].
 Textilevaluechain.com. ,2018. Innovation in sportswear. [online] Available at:
 Tidd, J. and Bessant, J., 2014. Strategic innovation management. John Wiley & Sons.
 Volberda, H.W., Van Den Bosch, F.A. and Heij, C.V., 2013. Management innovation: Management as fertile ground for
innovation. European Management Review, 10(1), pp.1-15.
 Volberda, H.W., Van Den Bosch, F.A. and Heij, C.V., 2013. Management innovation: Management as fertile ground for
innovation. European Management Review, 10(1), pp.1-15.

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Thank you
Any questions?