Pestle and SWOT Analysis of JD Sports in the Global Business Environment

This report provides a Pestle and SWOT analysis of JD Sports in the global business environment. It covers political, economic, social, technological, legal, and environmental factors affecting the company's operations in India.

Global Business
Environment

Table of Contents
 Introduction
 PESTLE analysis
 SWOT analysis
 Pestle analysis on the basis of SWOT analysis
 Conclusion
 References

Introduction
 The global business environment is
the business that has its business activities
that are being carried out according to the
environment of various countries that it
operates its functions. The company selected
for this business is JD sports that is a UK
based company.

PESTLE analysis
PESTLE Analysis is a structural framework that examines various external factors impacting
the functions and overall business performance (Rao, 2019).
 Political factor
 Economic factors
 Social Factors
 Technological Factors
 Legal Factors
 Environmental Factors

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It directly impacts and influences the business entity. It is
used to evaluate external environmental factors and in context with
JD sports is explained below:
Political factor- These factors include government policies, rules and
regulations that influence the arrangement or specific industry. It
consists of political stability, trading and taxation policy. In JD sports,
this factor analyses long term profitability in market.

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 Economic factors- These factor influences on economy and
business performance on it. It includes various interest rates,
rates of employment, foreign exchange rates (Reid and Lee,
2018). In JD sports case, it can use economic factors as they
specify industrial economy in its growth in the market and
country. The company needs to evaluate Indian market
conditions and target for its products.

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Social Factors- These factors
include social environment in market. JD
sports should understand its target audience
and how they need to design a message for
retail market.

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Technological Factors- These factors include technological innovation and development. JD
sports needs to follow currently updated technology ahead of competitors.
 Opportunity: JD sports always keep on updating with new innovation for increasing the sales.
It also uses artificial intelligence to develop online platforms to sell its products online media.
 Challenges: the social media and artificial intelligence can be hacked in Indian market
resulting in loss.

Conti…
Factors- These factors regulate legal aspects of the business operations in a country. JD sports
needs to consider legal points as they affect the business operations.
 Opportunity: JD sports trades internationally and this helps employees with rules and
regulations for sales in market.
 Challenges: It is difficult for JD sports to keep on changing with Indian laws as it will
influence its business operations (Usunier, 2018).

Conti..
Environmental Factors- These factors are surrounding environment impacting business operations.
JD sports needs to understand Indian market along with its condition and laws.
 Opportunity: JD sports produce products that are environment friendly and involve the
ecological investment.
 Challenges: JD sports needs more resources for consumer demand as well as ecological factor
should be considered as it reduces supply of product.

SWOT Analysis
Strengths Weaknesses
 Political stability
 Less Trade Restrictions
 Inflation
 Laws and legislations
Opportunities Threats
 Technological advancements
 Research and Development
 High competition
 Varied taste and preferences of customers

Pestle analysis on the basis of SWOT
analysis
Pestle analysis factors Opportunities Challenges
Political Indian government is stable and
this will result in more
employment and growth of
business (Vihari, 2019).
Indian government has laid certain
restrictions on exporting and
importing duties, that will result in
reduction of sales.
Economic Price changing of products
along with new demands will
result in quality improvement
and thereby increased sales.
Inflation and other fluctuations in
price will be a challenge.

Conti…
Social Preferences of customers will be
there, so the company has to
produce its products accordingly.
Declining of reputation and brand
value will be there because of the
controversies.
Technological Due to innovations of new
products and addition of new
features will help in expanding
organisation.
Delay in product launch because of
changing of old trends will need more
research.

Conti..
Legal There will be new rules and
regulations for the employees
and sales.
Changing laws will decrease market
share thereby creating specific
market in India (Yaklai,
Suwunnamek and Srinuan, 2018).
Environmental It will provide clean products
for customers to fit with their
values and beliefs.
It will have strong competition in
market with price and quality terms
that can resulting in changing minds
of customers.

Conclusion
From the above report it can be concluded that Pestle and SWOT analysis is
important for knowing all the different factors and aspects of JD sports for getting its business
operations to be settled in India. This report has been covered various aspects that are related
with pestle and SWOT analysis for JD sports for analysing internal and external business
environment of the organisation.

References
• Nudurupati, S. S., Garengo, P. and Bititci, U. S., 2021. Impact of the changing business
environment on performance measurement and management practices. International Journal
of Production Economics, 232, p.107942.
• Rao, I., 2019. Competing values in Asian business: evidence from India and Dubai. Journal
of Asia Business Studies.
• Reid, D. and Lee, K. H., 2018. Strategic planning practices in Hong Kong: a cultural
dimension. In Global Business (pp. 238-258). Routledge.