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

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.