Strategic Positioning of JD Sports: A Case Study

This case study analyzes the strategic positioning of JD Sports by assessing their mission statement and long term goals. It also examines the macro position of the company through PEST analysis and internal capabilities using McKinsey's framework. The study further explores Porter's five force model and Ansoff's matrix to understand the competitive position and strategic management plan of JD Sports.

Project

INTRODUCTION....................................................................................................................................3
SECTION 1..............................................................................................................................................4
Strategic positioning of the organisation by assessing their mission statement and long term goals..4
Macro position of JD sports.................................................................................................................4
SECTION 2..............................................................................................................................................5
Internal capabilities of organisation by using McKinsey’s framework...............................................5
TWOS matrix.......................................................................................................................................5
SECTION 3..............................................................................................................................................7
Porter’s five force model......................................................................................................................7
Ansoff’s matrix....................................................................................................................................8
SECTION 4..............................................................................................................................................8
Strategic management plan..................................................................................................................8
CONCLUSION........................................................................................................................................9
REFERENCES.........................................................................................................................................9

INTRODUCTION
Business strategy is set of direction as well as course of action which provide assistance to
entrepreneurs in accomplishing their business objectives. In simple term it can be said that, business
strategy is the master plan which management of business firm implements for securing competitive
position within market area. Moreover, it is long term sketch of desired image, destination as well as
direction of company. This report is based on JD sports which is sports fashion retail organisation
based in Bury, Lancashire, United Kingdom. It was founded in 1981 and products offering by them
are clothing sportswear accessories.
Respective report will going to conduct discussion of strategic position of business firm by
assessing their mission as well as long term goals. Moreover, macro position of company will
determine through PEST analysis. Furthermore, internal capabilities analyse by implementation of
McKinsey’s framework as well as for strategic capabilities TOWS will implement. Apart from this,
Ansoff matrix will implement for analysing competitive position of JD sports along with strategic
management plan.
SECTION 1
Strategic positioning of the organisation by assessing their mission statement and long term goals
Strategic positioning is related to the way in that business as a whole distinguishes itself in a
valuable manner from its competitors as well as delivers value to particular customer segments.
Moreover, effective positioning strategy involves strength as well as weakness of business firm, the
requirement of customers and market as well as position of competitors. In simple term it can be said
that positioning strategy allows an business firm to spotlight their particular areas where they can
outshine as well as beta competition. JD sports which is sports fashion retail organisation based in
Bury, Lancashire, United Kingdom. It was founded in 1981 and products offering by them are
clothing sportswear accessories.
JD sports mission statements is “To be best as well as popular fashion retailers of United
Kingdom. By providing wide range of products to customers, secure shopping experience as well as
huge range of women’s, men’s and kind’s trainer and footwear which are exclusive to JD sports only.”
Apart from this, long term goals of business is to take better place within market by serving variety as
well as good quality product to their existing customer. With this, they can attract large number of
people with such type of strategies.

Macro position of JD sports
Micro environment is external as well as uncontrollable factor which influence decision
making of organisation affect its performance and strategies within direct and indirect manner. There
are several micro environment factors such as legal, political, social, technological and natural forces.
Thus, for analysing micro position of JD Sports Company is going to implement PEST analysis.
Explanation of these are as follows :-
 Political factors – It is related to the alignment as well as trade barriers which are set by
government. Political factors involves taxation and any modification in political governance
may impact JD sports within several manner. As most of the JD sports products are imported
from other countries. Thus, respective company may lose their customer’s who not able to pay
high price and can also shift towards substitute products offering by their competitors.
Trading policies: While dealing in differ markets it has been analysing that nations have
differed trading policies that affect business in adverse manner. In that regards it is very much
potential to conduct proper research in order to gain desirable outcomes.
War and conflict: It is very crucial for an organisation to understand the political conditions
of specified nation where they aimed to operate. IN context of JD sports while operating in
differ nation they need to understand the various kinds of reasons of conflicts and political
stability of market in order to gain desirable outcomes.
Funding, grants and initiative: While operating in different nations it is very important to
raise funds from the various sources to operate business activities in effective manner. in
context of JD sports they need to analyse the political and financial condition of nation before
operating in specified nation in order to remain competitive in marketplace.
 Economical factors – It include several factors such as interest rates, inflation, taxation and
many more which have major affect on working of JD sports in direct as well as indirect
manner. If higher interest rate will apply investment of JD sports will deter as well cosy more
to borrow. If currency of United Kingdom maintained strong then import of products will
easier since price will get reduce in term of foreign currency. Along with this, inflation within
economy may provoke high demand for wages by the staff member which will result in
enhancing cost of business firm.
 Social factors – Modification within social trend result in high impact on demand of JD sports
products as well as services like substitute products and potential companies with
differentiating strategy. Along with this, promoting different fashion wear by competitor
organisation might result in declining trend of sportswear within everyday life which focusing
by JD sports company.

 Technological factors – Advancement in technology factors result in creating latest products as
well as process and also affect JD possibility. Along with this, latest technology result in
several positive impact on JD sports by reducing cost, improving quality of their offerings as
well as they can lead innovation within their services. But it have some negative impact also
by rising unemployment as technological machines can be used instead of human beings.
 Legal factors- In legal factors consist of the various laws and regulations that affect business
works and activities in both positive and negative manner. In context of JD sports they by
obliged the equal pay act, various kinds of HRM practices that provides assistance in their
work and activities in positive manner. By properly obeying legislation they can be able to
positively operate activities potentially.
 Environmental factor: In Environmental consist of pay attention on activities that save
environment from any kind of destruction. It has been analyse that people are aware about the
environment in these days. In that regards JD sports by using eco friendly products and
services can be able to give one of their best products and services to the end users potentially.
SECTION 2
Internal capabilities of organisation by using McKinsey’s framework
McKinsey 7S model is tool which analyse organisation design by focusing at 7 internal
elements i.e., strategy, structure, system, shared values, style, staff and skills. For identify that these
are effectively aligned and also providing assistance to business firm in accomplishing their
objectives. In relation of JD sports explanation of 7S are as follows :-
 Strategy – For advertising products JD sports use athletes for sponsoring and will create such
offering that will appeal wide range of audience as possible through respective approach.
 Structure – Company focus on team building approach as their structure. Because working in
team provide assistance in accomplishing goals as well as objectives within effective manner.
 System – Main system which JD sports run are research & Development as well as
advertisement campaigns. Thus, JD sports is promoting their company as wide range and
quality sports products for men’s, women’s and Kid’s.
 Shared values – JD sports mission statements is “To be best as well as popular fashion retailers
of United Kingdom. By providing wide range of products to customers, secure shopping
experience as well as huge range of women’s, men’s and kind’s trainer and footwear which are
exclusive to JD sports only.” Apart from this, long term goals of business is to take better
place within market by serving variety as well as good quality product to their existing
customer. With this, they can attract large number of people with such type of strategies.

 Style – Management of JD Sports wants to implement a lifestyle for staff members which can
be possible through promoting team building. Moreover, profitability of respective company
shows that their management and leadership style is effective.
 Skills – Leaders, managers as well as employees have capabilities of completing activities
within effective manner.
 Staffs – JD sports have well skilled employees as they are focusing more to invest on training
and development session of their employees.
TWOS matrix
Strength
 JD sports have strong
distribution network as
they have numerous
outlets.
 It have low cost
structure which result in
gaining advantages over
competitors.
 Strong financial position
with positive profit
report and asset base.
 High skilled labour
 Strong presence on
social media.
Weakness
 Major weakness is that
most of the property
using by JD sports is on
rent as they have to pay
rental charges.
 They are not spending
appropriate amount on
research and
development.
 Less employee
motivation which result
in high turnover.
 Liquidity issue.
Opportunities
 JD sports have
opportunity of E-
Commerce.
 Social media users are
increasing worldwide
level.
 Interest rates are low,
which provides an
investment opportunity
for large projects.
SO Strategies
 Increase marketing for
attracting consumers.
 Company can use their
presence on social media
which result in attracting
customers towards
websites.
 By innovation
developing environment
friendly products at a
WO Strategies
 Finance ownership of
the property by low
interest rate for
enhancing the proportion
of owned property to
rented property.
 Increase payrolls,
provide incentive
packages as well as
benefits to staff for

low cost which they can
sell at low price.
 Market products at low
prices by offering
discounts which result in
enhancing sales.
reducing turnover and
improving work morale.
This could be possible as
costs are low currently.
Threats
 Threat of new entrants.
 Devalued exchange rate.
 Risen fuel price has
risen result in expensive
inputs.
 Increasing rivalry within
industry.
 Substitute products.
ST Strategies
 Effective distribution
network help in reaching
out customers and also
help in sustaining in
front of new entrants.
 Use its strong financial
position to invest in
intellectual property
rights. This will assist in
competing within
competition.
 Using innovative teams
to find cheaper
alternatives to fuel so
that these could be used,
thereby reducing costs.
WT Strategies
 Enhancing level of
spending on research
and development help in
competing with
competitors.
 Provide incentives,
increase engagement, or
provide a better work
environment for
retaining talent. This
will make sure that staff
will not leave as well as
join competition.
SECTION 3
Porter’s five force model
Porters five force is holistic strategy which help in taking strategic decision by analysing
present competition. In relation of JD sports explanation of respective framework are as follows :-
 Threat of new entrants – In retail sector new entrants always come up with some innovation as
well as new way of doing things. This put pressure on JD sports through lower pricing
strategy, reducing cost as well as providing new value proposition to the customers. Thus,

respective company have to manage all the challenges and build effective barriers for
safeguarding its competitive edge. Thus, threat of new entrant is high for JD sports.
 Bargaining power of suppliers – In retail industry mostly companies buy raw material from
numerous suppliers. Within dominant position can decrease margin of JD sports they can earn
within market. Moreover, powerful suppliers in consumer services sector utilise negotiation
power.
 Bargaining power of buyers – Now a day buyers are demanding lot as they want to purchase
best offers available by paying minimum amount as much as possible. This will result in
putting pressure on long term profitability of JD sports. The smaller as well as more powerful
customer base of JD Sports the higher the bargaining power of the customers and higher their
ability to seek increasing discounts and offers.
 Threats of substitute products or services – When Services or products of buyers are meeting
in different manner then profitability of industry may suffer. For JD sports company threats of
substitute products is high as there are several companies who offering substitute.
 Rivalry among the existing competitors – Retail industry have several number of organisation
which result in increasing level of competition. Thus, JD sports is operating in competitive
industry which take toll on long term profitability of business firm.
Ansoff’s matrix
It is market growth matrix which suggest that business attempts to grow which depend on
whether its markets new or existing products within new or existing market. Ansoff’s growth strategy
have four different strategy i.e., market penetration, market development, product development and
diversification. In relation of JD sports explanation of these are as follows :-
 Market penetration – It is least risky because in this company sales their existing products
within current market segment. Moreover, market penetration has limits and once market
approach saturation another strategy will be pursued if firm continue to grow. Thus, for JD
sports market penetration is not suitable for growth.
 Market development – It is an growth strategy in which firm target new segment with their
existing products. In market development strategy company expand their business within new
market. Thus, for JD sports market development is most suitable approach as they are
operating in UK only so for them expansion is most suitable for growth.
 Product development – It is growth strategy in which business firm develop new products by
targeting its existing market segment. Same as new market development, new product
development is also more risky.

 Diversification – Out of all the four growth strategy diversification is more risky because it
requires both product as well as market development. It is not possible that new customers will
prefer the products.
Thus, for JD sports market development will be more suitable approach as company will target new
market with their existing products. This will help them in increasing customer base as well as
generating high profitability.
SECTION 4
Strategic management plan
Strategic planning is the procedure of documenting as well as establishing a direction of
business. Strategic plan records mission, vision, values as well as long term goals utilise in strategic
management plans as it provide assistance to reaching it. JD sports are using market development as
their growth strategy which simply means that they are expanding business in Africa with their
existing products and services.
Objective: To expand market for increasing sales as well as customer base by 70%.
SWOT analysis
Strength Weakness
 JD sports have strong distribution network
as they have numerous outlets.
 It have low cost structure which result in
gaining advantages over competitors.
 Major weakness is that most of the
property using by JD sports is on rent as
they have to pay rental charges.
 They are not spending appropriate amount
on research and development.
Opportunity Threats
 JD sports have opportunity of E-
Commerce.
 Social media users are increasing
worldwide level.
 Threat of new entrants.
 Devalued exchange rate.
 Risen fuel price has risen result in
expensive inputs.

CONCLUSION
After going through above discussion it has been identified that, Business strategy is set of
direction as well as course of action which provide assistance to entrepreneurs in accomplishing their
business objectives. In simple term it can be said that, business strategy is the master plan which
management of business firm implements for securing competitive position within market area.
Moreover, it is long term sketch of desired image, destination as well as direction of company. For
making effective business strategy it is essential for company to analyse their strategic position which
will assess through mission and long term goals. Moreover, macro environment play major role in
designing business strategy for which company has been implemented PESTEL. It is not enough to
analyse only macro environment there is requirement to determining internal capabilities also.
Moreover, through strategic capabilities TOWS matrix provide assistance in effective manner as well
as competitive position is also important for evaluating as it is important for making effective business
strategy. Furthermore, strategic management plan also play important role in business strategy which
has been analysed through above discussion.

REFERENCES
Books and Journal
Akter, S. And et. al., 2016. How to improve firm performance using big data analytics capability and
business strategy alignment?. International Journal of Production Economics, 182, pp.113-
131.
Leonidou, L. C. And et. al., 2017. Internal drivers and performance consequences of small firm green
business strategy: The moderating role of external forces. Journal of business ethics, 140(3),
pp.585-606.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Park, Y. and Mithas, S., 2020. ORGANIZED COMPLEXITY OF DIGITAL BUSINESS
STRATEGY: A CONFIGURATIONAL PERSPECTIVE. MIS Quarterly, 44(1).
Lieder, M. and et. al., 2017. Towards circular economy implementation in manufacturing systems
using a multi-method simulation approach to link design and business strategy. The
International Journal of Advanced Manufacturing Technology, 93(5-8), pp.1953-1970.
Chen, Y., Eshleman, J. D. and Soileau, J. S., 2017. Business strategy and auditor reporting. Auditing:
A Journal of Practice & Theory, 36(2), pp.63-86.
Yuliansyah, Y., Gurd, B. and Mohamed, N., 2017. The significant of business strategy in improving
organizational performance. Humanomics.
Olson, E. M. and et. al., 2018. The application of human resource management policies within the
marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management, 69, pp.62-73.
Leischnig, A. And et. Al., 2017. From digital business strategy to market performance: insights into
key concepts and processes.