Strategic Management in JD Sports PLC

INDIVIDUAL STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Company background......................................................................................................................3
MAIN BODY..................................................................................................................................4
TASK...............................................................................................................................................4
PESTLE.......................................................................................................................................4
Porter’s five forces.......................................................................................................................6
VRIO............................................................................................................................................7
2. Analysing and evaluating organizations competitive strategies..............................................9
Strategic recommendations for JD sports PLC to strengthen its existing position....................11
Strategic direction......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is totally concerned for recognition and description of the plans that
are carried in organizations for acquiring competitive advantages and great performances. It is a
bunch of actions and decisions that are undertaken by a manager that decides the outcome of the
organization’s performance. This report covers all the functions of strategic management which
are implemented in the chosen organization that is JD sports PLC. The report describes the
background of the company including tools and frameworks that are utilized to analyse the rival
environment. Recognition of competitor’s strategies to understand the impact of competition and
recommendations to strengthen JD sports PLC current position and provide directions to
implement and formulate plans based on the market analyses is also described in this report.
Company background
John Wardle and David Makin founded JD sports fashion PLC first store in Bury city of
Grand Manchester in 1981. It is the leading retailer of fashionable brands online and in store and
has its own brand (RAZIF, 2018). It also deals with casual wear of such famous global brands.
Its primary store was launched in Oxford Street in 1989 and later registered in the market of
London stock exchange. Organization obtained French retailer of sports called Chausport and
entered into Europe and dominated in most of the European countries. Organization launched
around 56 stores by 2011. JD was bought up by Pentland group and was considered as the most
innovative retailer of branded footwear. It is FTSE 100 index constituent. JD has growing its
business internationally and looking forward to expand specially in Asian countries.
Key challenges faced by JD sports PLC
In spite of innumerable challenges facing mortar and bricks retailing it continued upgrade
constant earnings and deliver services. The volume of buyers was reduced and organization’s
sales were slowed down to 2% in the period of 10 weeks and recognised the maximized strong
comparative challenges. It has faced current economic issues and fiscal threats to the
expenditures of consumers. Company has stood out in the downturn of economics among its
struggling competitors. In the middle of huge retail malaise, it somehow to thrive in between the
premium rivals by offering various different offers to the consumers.
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MAIN BODY
TASK
PESTLE
There are number of challenges as well as opportunities arises in business because of
different types of external factors such as political stability of country, economical reforms,
social behaviour of customers, technological advancement etc. and hence it become important
for firm to analyse it carefully before planning to expand market in different part of world.JD
sports Plc is one of well known retail brand in United Kingdom and mainly focuses on sports
attire, expanded market in European as well as planning for Asian countries (ROZENFELD,
2017 SUC) Such as Vietnam is known as one of the most populous nation within the world and
at the same time aims to become one of the developed country as soon as possible.
Political
Political stability in United Kingdom support industrial growth as policies remain same
and hence organisation can work accordingly. Government of country focuses on growth of
every sector and try to support local firms such as JD sports. However, there are many challenges
which arise because of BREXIT. Most of Raw material of JD sports comes from European
countries but because of Britain’s exit from European Union leads to new tariff which effected
firm’s price strategy. Organisation is planning in expanding business in Asian countries but most
of customers do not welcomes foreign brands as well as UK have some political issue with few
nations in Asia such as Vietnam in Human Rights Watch has very poor records. Freedom of
association and expression as well as peaceful public assembly are restricted strictly. Vietnam
has communist party that controls the nation's journalist, media and several topics of criticizing
the government. Thus its challenging for JD sports to extend their market within Vietnam.
Economical
Britain economically strong and even ranked in top 10 which support industrialisation
and growth of various businesses in country. Increase inflation rate because of BREXIT and
COVID pandemic effected JD sport’s competitive price strategy from which organisation able to
attract customers as well increase market share in time of globalization (Dibia, 2019). Number of
Unemployment continuously increasing in nation because of Britain’s exit from European Union
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