Business Strategy of John Lewis Ltd

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Pestle and Swot analysis of John Lewis Ltd..........................................................................1
Analysis of Competitive environment through Porters five forces........................................3
TASK 2............................................................................................................................................4
Strategic management plan for John Lewis............................................................................5
Justify and recommend the most appropriate growth platform and strategies-......................7
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy is a course of action or we can say that it is a master plan that supports
and help the management of the company to secure top position in the market as compared to its
competitors and to achieve the desired objectives of the business. It is designed to perceive and
take advantage of opportunities, to mobilise the resources, and to secure a competitive position
and to attract potential customers, to strength the position in the market. The report describes the
Analysis of capabilities of John Lewis Ltd. through SWOT and PESTLE analysis. Report will
also analyse competitive environment using Porter Five Forces Model. John Lewis Ltd is
founded in 1864 by John Lewis. It is a chain of Department stores which has operations
throughout U.K. It is a Public Limited Company. It's headquarter is in London, SW United
Kingdom.
TASK 1
Pestle and Swot analysis of John Lewis Ltd.
Political factors- As Being noted that John Lewis is U.K. based company, it would be an
ease for them into European market, government has mentioned that any U.K. based competitor
company can enter in the market without any limitation and restrictions. This creates a positive
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Illustration 1: Pestle Analysis
Source : (Pestle analysis , 2017)

impact on the company. On the other end, being established its business in 50 other countries,
John Lewis Ltd. has to deal with many trade barriers, government laws, pricing regulations
which serves as negative side.
Economic- UK is currently facing recession in economy and various changes in interest’s
rates. With intense competition in retail sector enforces the retailers to provide a lot of incentives
to customers which influences John Lewis Ltd. to drove down its prices consistently, and creates
negative impact on economic stability. On the other hand, John Lewis objective to sell the
product at cheaper price and better quality has led to its increase in sales volume resulting in
improving economic position of the company.
Socio-cultural- With changing in modern day scenario, the customer s is also changing
their preference and lifestyle and demand the products that may pay value for their money. John
Lewis thus, have to introduce the latest fashion products to satisfy customers and that too on
regular basis. It will pose negative results if the company fails to identify the consumer wants
and desires. Again positive thing here for John lewis is that they provide better quality products
at cheaper price and create materialistic component customers,
Technological- Internet and technology is expanding day by day has direct influence on
sales of retail industry, especially John Lewis which has its primary base of online selling of
products. Here the technological advancement will create positive impact on growth of John
Lewis. But on other hand this technology usage is not allowing John Lewis to establish
employment opportunities as every operation of business is conducted on software and servers,
resulting on negative impact of company's CSR.
Environmental- Environmental laws has been enforced for companies to reduce their
carbon footprint and increase energy efficiency which possess John Lewis to incur higher cost
and spending money in developing eco-friendly products. Also, positive side for the company is
that it deals with cotton and wool which are renewable resources and environmental friendly.
Legal- Government is concerned more with health and safety as well as consumer rights,
which makes John Lewis design Consumer friendly products whereas John Lewis uses
renewable and environmental friendly resources, so it creates positive advantage for them
(Pisano, 2015.)
SWOT analysis of John Lewis Ltd company.
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