Strategic Management Analysis of JD Sports: PESTEL, Porter's Five Forces, Value Chain, and Strategic Directions

This report provides a strategic management analysis of JD Sports, including PESTEL analysis, Porter's Five Forces framework, value chain analysis, and strategic directions. It discusses the macro environment of the company and identifies the competitive strategies using Porter's generic strategies. The report also provides recommendations for the company's expansion strategies.

PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Executive Summary.....................................................................................................................3
PESTEL analysis of JD sport: PLC:............................................................................................3
Porter's five forces framework.....................................................................................................5
Value chain analysis....................................................................................................................7
Bowman's Clock strategy.............................................................................................................9
Strategic Directions....................................................................................................................10
Recommendation.......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management means the process and method to plan and develop goals and
objectives for the betterment of the organization. Strategies allow business to perform
effectively, these strategies are very important and management of such as strategies as much
more important. A perfect strategic plan provides business a competitive edge (Ansoff, et.al.,
2018.). This study is based on JD Sport, the company was established in 1983. the company
provide retail products and have wide range of fashionable wears including both sport and casual
wear. In this report we will discuss the macro environment of the company which provide us
details of factors that effect the strategic management of the company, these factors are political
and other macro level factors which revolve around the environment of the company. Later we
will analyse the internal factors of the organization and identify the competitive strategies using
porter's generic strategies. At last, we will discuss the strategies directions of the market, product
and service of the company.
MAIN BODY
Executive Summary
The various framework is determined in the report to emphasize various factors that
implying in business of JD sports. As they provide varieties of services to customers. In this
competitive strategies and their direction is discussed to examine through market, products and
services, in order to determine this for expansion strategies of business.
PESTEL analysis of JD sport: PLC:
Pestle analysis is one of the most powerful tool which a company use to analyse the
Macro factors which influence the strategic management of the company, there analysis have
various factors such as:
Political factors: political factors means factors related to the government and its interference in
the organization working, this factor has great influence on the strategic management of the
company. JD sports fashion plc have facing force from the political factors as they need to
understand and plan their strategies accordingly. The company deals in retail and fashionable
items and always get influence by the political environment. The new trade and tax policy of the
government on the retail sector have impacted the strategic management as they are been
planning to expand their store other country.

Economic factors: economic factors are mainly concern with various factors of the economy
such as high inflation rate, the stability of the economy, tax and rate. Employment and
employments rate and various other factors. Stability of the economy plays an vital role in the
success of the company, without the better economic stability a business can not grow (Hunger,
2020). The stability of the economy is very important for the JD sports fashion plc, this retail
giant help the government in the betterment of the economy and often contribute their affords in
the economy, the new infrastructure plan of the economy is impacting all the retail sectors of the
country as government now planning to increase trade and tax on these retail sector.
Social factors: social factors means the component which impact the company and its strategic
management, the social factors may include the lifestyle of the people, income and education
level, spending capacity and age gender and personal taste and preference (Lasserre, 2017).
Social factors are very important for the company as they are related to the customer and their
social life, understanding the customer through social factors is very beneficial for the company.
For JD sport fashion plc, social factors plays an important role because the company
manufacture sport and fashion item and mainly deal in the social criteria, people try to improve
their lifestyle with the fashionable items and their behaviour is influenced by the social factors.
Technological factors: technological factors plays an vital role in the company, without the
technological a business can not survive in the modern world. Technological is not mainly used
by the company but people or customer use these technological more often. If the company want
to survive in the competitive market, then they need to have both the advance software and
hardware. JD sport fashion plc have the latest and the fastest technology which allow them to be
more competitive in the market. Latest and the fastest technology have impacted the retail sector
as a whole and every store is now online with the help of technology used by the organization.
Legal factors: legal factors means the rule and regulation of the government, these laws in the
relation with the trade and business impact the smooth running of the process (Nguyen and
Nguyen, 2017). Every business need to have all the legal formalities done before entering the
market because this will keep them safe with any kind of conflict or problem. JD sport fashion
plc is been dealing in the international market as well, so they need to complete all the legal
documentation and requirement of other different country as well. It is very important for the
company to stay clear in exporting their goods in the foreign market.

Environmental factors: environmental factors influence the smooth flow of the business,
environmental factors are weather, climate, and laws regarding the production and
manufacturing of the products. When the business deal in product, they mainly depend upon the
raw material from the nature. For JD sports fashion plc, the environment factors impact the
smooth running of the business. The company distribute their products with their own
distribution channels which sometimes get disturb with the factor of the environment such as
heavy rain or natural disturbance.
Porter's five forces framework
The micro environments help organization to achieve targets and objectives of JD sports
organization through emphasizing framework of Porter's five Forces framework that is
determined by there five forces that create in organization to determine various factors that play
significant role in organization. That is determined below;
Rivalry: rivalry means the competition in the market, much business fail to survive in the market
because of the high level of the competition. Competitors are the biggest barrier every business
face, and they are the one who are responsible for certain competitive activity in the market. JD
sports fashion plc face the highest competitions the company deal in the retail market and this
market alone is full of competitors (Bruijl, 2018). They face high level of rivalry from other
retail giants, they use various competitive strategies to capture the market and give high level
competition to the company. JD sports fashion deal in clothing part of the retail industry which is
highly competitive from the local businesses. The latest use of the technology by the competitors
are allowed them to be more effective in the market, and they have long termed growth and
profitability plan. The company is surviving the market because they have their own platform
and market to sell their product and their strategic management allow them to survive the market.
Threat of new entrants- In regard to organization, by arising new competitors in market of JD
sports, they implemented various strategies to overcome barrier of competitor. By conducting
their price of products at low and decline costs through this occurs positive impact as more and
more customers attracted towards organization (SAXENA and DAS, 2021). Also, innovate their
products and services in effective manner by which their sustainability performance raises and
production increases that create positive impact on business. As through developing economic of
scale by lowering their prices helps in raising performance of organization and conducts
economic growth of organization in profitable manner. They invest money more on research and

development, by which their product enhances and conducts growth of organization in
productive manner. By removing competitors in organization helps in raising organization
productivity and efficiency. By this organization gains their sustainability performance in
positive manner.
Bargaining power of suppliers- In respond to JD sports, by negotiating from suppliers about
products and services helps in securing and preserving financial aspect of organization. This
creates positive impact on organization by purchasing raw material from specific suppliers. By
this approach organization determines lower profits margin. In order to overcome barriers and
emphasize positive impact on organization by negotiating with suppliers helps in succession
costs by which money of organization get preserved in effective manner. This helps in raising
organization performance, also by this organization can use their secure cost where it is more
required for promoting their products. It helps organization to conduct sustainability growth in
market and achieve aims of organization in effective manner. In accordance to bargaining
strength of suppliers by making effective connection with them through this communication is
also built in organization. By this invest of cost take place in productive form through
emphasizing positive approach in business.
Bargaining power of buyers- In terms of organization, by bargaining power of buyers is created
positive impact on organization through offering minimum cost. By this organization achieves
growth as bargaining power helps in offering consumers discount through this more and more
consumers attracted towards organization in respective manner (Panghulan, 2021). This helps in
facilitating growth of business through providing offers to customers boost organization
productivity. To boost organization productivity and efficiency in desired manner by
emphasizing growth of business through offering discounts to customer they find more suitable
for them. It helps in raising customer presence as more consumer come to organization for
purchasing products. By this organization productivity and efficiency increases and conduct
positive impact of organization on their function of management by facilitating growth of
business through implying this approach in business. The bargaining strength of buyers raises
organization performance and make sustainability growth of business in organization. As
organization main aim is to attain customer for organization to conduct growth in business
sector, in accordance to this develops positive impact on organization and on consumer by
facilitating growth of organization.

Threat of substitute goods or services- In accordance to this, it is determined that when in
organization the new goods or services helps in meting consumer requirements. The threat of
substitute goods is high in order to this by offering value proposition determine in gaining
organization sustainability growth in sector to achieve desired targets and goals effectively. By
implementing strategy into action this by conducting products and services in innovative form,
the threat is removed in effective manner. As organization achieves their sustainable growth in
market and boost organization productivity and efficiency in positive manner through removing
this barrier in respective manner creates positive influence of organization. By substituting
products and services may also create negative impact as it occurs in mind about that consumers
like product and services or not. In accordance to this by making preference in mind develops
thoughts and views. To boost organization productivity and performance it is essentials to
substitute products or services to gain sustainable growth by providing customer better quality of
products and services in perspective manner.
Value chain analysis
The framework helps organization to determine their primary and secondary tasks, by
addition of values in end goods. This helps in decreasing costs and raises differentiation by
converting input into output (Dwivedi and et.al, 2021). By value chain framework helps in
determining various stages that come under this, to achieve growth of business in desired
manner. By emphasizing growth of business the model helps to gaining competitive advantage
and development of business in effective manner. This helps in facilitating growth of business
for achieving desired goals of organization in effective manner. By developing value of products
that attain more and more customers towards organization for achieving their desired targets in
effective manner. These are explained below;
Primary Activity- In respond to organization, the primary activities help in addition of value for
operation procedure. It include various stages through which organization perform their activity
and raises organization productivity. By this organization work in manner to achieve their
desired targets and goals in productive manner to boost productivity of business. In this performs
various functions that are;
Inbound Logistics- In accordance to business, this stage helps organization to perform activity by
obtaining products from business suppliers and produce finish goods that provided to customers.

To boost organization productivity and efficiency in marketplace by deriving finish products to
consumers.
Operations- The operation function helps organization to achieve their desired targets by
operation of their product and services. In order to determine that production of goods and
services helps business to grow by deriving end products to consumers. As it is essential stage in
value chain assessment of organization (Mostafiz and et.al, 2021). Due to this organization
achieves their desired targets and goals by performing operation function in organization through
making products and services that enhance customers towards organization.
Outbound Logistics- In order to organization, this function helps in organization to distribute
their products and services to customer. It helps organization function to perform their activity in
order to distribute their products through channels of medium. This facilitates growth of
organization by providing customer product by rapid channels to increase sales.
Marketing and Sales- In accordance to organization, for promoting and marketing of products is
required to facilitate growth of business. To raise their sales revenue for organization in order to
achieve their desired targets and goals effectively. Though for marketing activity uses various
channels of medium such as advertising of products through which more and more customers
attracted toward organization. By this sales increases in organization due to marketing of product
on platform.
Support activity- In context to organization, this activity helps in growing business by various
functions that take place in organization (Zhao and Kim, 2021). By supporting activity helps in
raising organization profitability and productivity in order to achieve growth of business. The
factors help to maintain functions by emphasizing various stages. It is defined below;
Organization Structure- The infrastructure of business is assured to determine appropriate
structure for organization to achieve growth of business by conducting growth of business
through providing better infrastructure to peoples. In order to do so, conduct programs through
this interaction among employees is conduct in positive manner and raises organization
productivity.
Human Resource Management- In respond to organization, it plays effective role through
maintaining function such as hiring, recruiting, selection procedure and other function in
organization. By this organization achieves their desired targets through working of HRM. As

this follows practices of organization by which derives competitive benefits through facilitating
work in productive manner.
Technology- In context to organization, the technology growth helps business to achieves
desired targets and goals (Toussaint, Cabanelas and Blanco‐González, 2021). By adapting
technology advancement in organization helps in raising performance of business in effective
manner. The technology helps business to achieve targets by emphasizing technology boost
customer.
Procurement- In order to organization, the procurement procedure for organization by
determining best prices in organization function. This helps in achieving desired targets and
goals by procurement of collecting resources for organization through department to attain
customers and develops sources for business.
Bowman's Clock strategy
In respond to organization, this framework helps business to shaping their price and
adding value to firm (Weston and Nnadi, 2021). By this organization achieves their desired
targets through various elements that occurs in this. That are;
Low Price/ less value- In regard to organization, through offering customers product at low
price that facilitates growth in business. Though by differentiated value helps in attaining
customers towards organization. By this more and more consumers attracted towards
organization by this organization productivity and efficiency increases.
Less price- In accordance to this organization, competing in this stage to derive low cost of
manager. By this business achieves their desired targets by determining less cost for becoming
powerful strength in market to maintain sustainable growth of market.
Hybrid Price- In regard to organization, the hybrid cost helps business to lowering cost of
product by which more and more customer attain towards organization. To boost productivity
and performance of organization (Hart, Bowman and Mallett, 2021). This determines affordable
price to consumer that satisfies their needs and desires of organization in effective manner.
Differentiation- In terms of organization, this strategy helps business to grow and conducts
sustainable growth in market. Through offering differentiated products to consumer by which
customers attracted towards organization. It helps in raising productivity and profitability of
product through deriving differentiated products to customer.

Focused Differentiation- In respond to organization, by focused differentiation helps in
conducting development for business. By this organization is focused on their product and
differentiated prices of goods helps in achieving desired targets for organization in productive
manner.
Raising price- The raising prices helps in increasing profitability of business, by this
organization achieves their desired targets. As through standardized product helps in enhancing
efficiency of business, and it works for short period of time.
Standard price- In order to organization, the standards price is reducing market share of
organization. As business also effected due to not everyone purchases products (Raj and et.al,
2021). In order to develop them in positive manner by determining effective strategy to
standardized product and price in productive manner that consumer purchase products.
Strategic Directions
The strategic direction helps in attaining organization objective and goals by obtaining
desired targets to achieve organization objectives. In accordance to this, it derived by three
elements that is explained below;
Market- In order to expand organization productivity, the market sector helps business to run
and smooth functioning of organization (Kasamani, Omido and Chepkulei, 2021). By expanding
market of organization through providing their products and services in each and every sector
market. This facilitates growth of business and enhance organization through determining
strategic directions for business.
Products- The business provided varieties of products to consumers such as millets, foot patrol
and many other goods to consumers (Meissner, Poensgen and Wulf, 2021). This helps in
facilitating growth of business as they achieve their desired targets through offering varieties of
services to consumers. By offering products to consumers, satisfies their needs and desires that
facilitate growth of business.
Services- In respond to organization, the services offered by business are consumer service etc.
through this easily consumer driven their views and opinions regarding products. By this service
organization make effective communication and listen to consumer needs and preferences in
desired manner (Secundo and et.al, 2021). As they innovate and rebuild their products and
services according to consumer requirements. This facilitates growth of business by attaining

more customer towards organization by providing them better quality of services that expands
organization profitability.
Expansion strategies
In order to increase their business, organization emphasized various strategies in market
to achieve growth of business in effective manner. Such as innovating their product, uses online
platform to listen to consumer needs and desires. Also, this helps in raising organization
productivity and efficiency by implementing this strategy into action. By the expansion strategy
boost organization performance and profitability by offering better services to customer. It helps
in raising organization profitability that helps in gaining sustainability growth of organization in
marketplace (Sanderson and Özogul, 2021). By applying strategy into organization boost
organization performance and productivity through deriving better qualities of services to
customer and facilitate growth of business in desired manner. The growth of business is
determined by implying strategy into organization through this organization productivity and
efficiency raises.
Recommendation
The business emphasize strategy into action to achieve their targets, as it is observed that
organization want to expand their business. In order to do so, for raising organization efficiency
and profitability by deriving their products into innovative form helps in attaining consumer
through which their efficiency increase in desired manner. By implementing strategy into action
helps in expanding organization through providing customer products on online mode by which
they easily order their products. Though recommending this suggestion to overcome challenges
and issues by facilitating this strategy into action.
CONCLUSION
The report has been concluded about organization of JD sports, under this summarizes of
macro and micro environment approaches that has been emphasized in the report. It will justify
Value chain analysis model and Bowman's clock strategy in business to determine various
factors that come under organization. The framework is described in the report to expands
business that will be emphasized in the report. It is summarized of model and strategies for
attaining customer to boost productivity of business that has been described in the report.
Furthermore, also strategic direction has been facilitated by examining various elements that are
market, product, and services. Also, expansion strategies have been described in the report. In

order to expand their business to achieve growth and conduct sustainable growth in market that
has been study in the report.

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