Situational analysis assignment : John Lewis

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
SITUATIONAL ANALYSIS..........................................................................................................1
MARKET ENTRY STRATEGIES.................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
.........................................................................................................................................................6

INTRODUCTION
Every organization wants to operate their business at global market in order to grab
international market opportunities. Mainly, it can be consider as a concept of globalisation in
which company can enhance their brand image at market place. For attaining the same,
organization needs to analysis market environment, business competitiveness (Gillespie and
Riddle, 2015). With the help of this, organization can easily established their competitive brand
image at international market. Present report is based on John Lewis & Partners, which is
department stores operate in the UK with the aim of enhancing their brand image. Company
expand their business in France to attain international market opportunities. With the help of this,
business can easily make their image more competitive. Report discussed about various market
entry methods along with its pros and cons. Situational analysis is also covered in this project
which help in evaluating the actual competitiveness at market place.
SITUATIONAL ANALYSIS
 Company analysis: It is an important process of evaluating the actual performance of the
company at market place. In context of John Lewis & Partners, they use this type of
analysis with the aim of determining the overall profitability of the company at market.
For analysing the same, company use SWOT analysis which can be understood by
following points:
◦ Strength: John Lewis & Partners is one of the mos upmarket retail stores in the UK.
Along with this, company also offer wide range of fashion clothes in market. By this
company easily enhance their profitability level at market place and also capture
customers attention towards its offerings. Strong online presence is also a major
strength of the company.
◦ Weakness: Absence of international business experience can be consider as a
weakness in which company face issues while operating their business at global level.
Along with this, lack of effective marketing strategy is also weakness for business to
invite larger number of customers over it products and services (De Mooij, 2018).
◦ Opportunities: International market expansion is a big opportunity in-front of John
Lewis & Partners to expand their business activities. In addition of this, online sales
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provide is a big opportunity for company to enhance their brand presence at market
place.
◦ Threats: Due to cultural differences, company fail in entering into new markets which
may negatively affect on the profitability level of the company. Apart from this,
negative effects of new legislations is also a major threat for organization.
 Marketing environment analysis: It is a strategic analysis tool which used by the
company to analysing internal and external factors that directly affect the performance
level of the company (Cavusgil and Knight, 2015). For attaining the same, John Lewis &
Partners easily take right decision and also improve their overall performance at market
place. In this PESTLE analysis is one of the important tool to evaluate the marketing
environment before operating their activities at France market.
◦ Political: France is a developing country in which political environment is stable in
nature. In this, there is no war , political issues, crisis and conflict related with the
politics. It is one of the best factor that attract more investors and business as well.
Along with this, there is no policy set by the France government for new entry
business. It provide opportunity to John Lewis & Partners to easily established their
business at France market. This the main reason that company tries to operate their
activities in France with the aim of attaining success.
◦ Economical: It is one of the important factor that contribute in doing business in
another country. Mainly, it is relate with interest rate, GDP, level of employment and
many more. In context of this, economic growth of France is expected good over
2018-19. This create opportunities for John Lewis & Partners to expand their business
activities in appropriate manner. As economic position in France is favourable which
help new business to set their activities with the aim of enhancing their overall
performance at market place.
◦ Social: France is consider as a modern country in the world and total population is
approx 63.5 million. Along with this, many France citizens are enjoyed high living
standards which provide opportunities to John Lewis & Partners to set their business.
In this they easily offer their fashion products to large number of people (Knight and
Liesch, 2016). Mainly, France is popular for its cars, culture, language, fashion,
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perfume and cuisine. It provide opportunities for new business to create their market
by attracting large number of customers over its products and services.
◦ Technological: In this factor, France is famous country in technological advancement.
In addition of this, France is also spends approx 2.2% of its GDP with the aim of
developing technology and industrial growth. In this John Lewis & Partners also use
new and innovative technologies to manufacture its products and services for
attracting large number of customers (Samaha, Beck and Palmatier, 2014). This will
help in enhancing overall profitability level in market place and at the same time it
will also established their competitive image.
◦ Legal: It is also an important factor in which legal environment of France is good
which help business organization to established their positive brand image at market
place. Mainly the legal length of working week in 35 hours in all the companies. As
workers are not able in working for more than 4.5 hours in a day. In this context,
government of France set regulations such as employee overtime, sick leave, annual
leave and many more. In this John Lewis & Partners is responsible to follow all the
rules and legal activities while operating their business at France market. By this they
easily established their competitive image from its rivals.
◦ Environmental: France is famous visited country in the world in which some
environmental challenges are raised. This will negatively impact on the performance
of new business at market place. Thus, it is important for John Lewis & Partners to
implement eco-friendly activities and resources within their production activities with
the aim of reducing the pollution in the country. With the help of this, they easily
established their positive brand image.
 Market competitiveness: In France, various competitors are operate their business which
increase competition in-front of John Lewis & Partners. Mainly, the competitiveness is
related with the ability of a business to offer best values to the customers than its
competitors with the aim of establishing their positive brand image. In context of this,
John Lewis & Partners serve quality and unique products to customers as per their needs
and wants in order to sustain image at market for longer period of time (Jia and et.al.,
2014).
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 Justification of the market choice and target segment: It is important for John Lewis &
Partners to select market and segment also before operating their business in new market.
With the assistance of this they can easily attain success at market by inviting large
number of customers. As John Lewis & Partners segment market on the basis of
customers lifestyle whom prefer to maintain higher loving standard (Sleuwaegen and
Onkelinx, 2014). Along with this, company target the customers belongs to the age
within the 18 to 55. For attaining success in France market, John Lewis & Partners use
strategic alliance to positioning their products. In this company provide new and unique
fashion products in market by implementing new and innovative technologies.
MARKET ENTRY STRATEGIES
For entering into new market, it is important for business organization to select best
market entry strategy. By this company can easily set their business in new market. In this, there
are some effective market entry strategies along with its pros and cons which can be used by
John Lewis & Partners to enter into France market:
Direct exporting: It is traditional strategy of operating business in the foreign markets.
Mainly, it is marketing of goods which produced in one country to another. Along with this,
direct manufacturing is not required but significant investments in marketing is essential. The
main advantage of this strategy is that it is less risky because manufacturing is home based which
reduce the potential risks of operating overseas. On the other side, it has less control over the
production.
Joint venture: It is an effective strategy of market entry in which two or more investors
are share ownership and also control all the property rights. In this, the main advantage of this
strategy is to share risk and ability to includes the in-depth knowledge of their partner (Hitt, Li
and Xu, 2016). On the other side, the main disadvantage of this strategy is that the partners do
not have full control of management.
From this, John Lewis & Partners use Joint ventures to operate their business in France
market. With the help of this, company share ownership with foreign partners to established their
brand image at market.
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CONCLUSION
From the above mentioned report, it has been concluded that operating business at global
market is helpful in grabbing international market opportunities in which company easily
enhance their profitability level. For attaining the same, company also includes situational
analysis of new market for improving their performance level. Along with this, appropriate
recommendations can be evaluate that, John Lewis & Partners should set appropriate market and
target segment to increase their sales by 20% within the 2 years. Company needs to use best
market entry strategy to established their competitive brand image in up-communing 3 years.
With the assistance of this, John Lewis & Partners easily attain higher success at market place.
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REFERENCES
Books and journals
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Knight, G. A. and Liesch, P. W., 2016. Internationalization: From incremental to born
global. Journal of World Business, 51(1), pp.93-102.
Samaha, S. A., Beck, J. T. and Palmatier, R. W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5). pp.78-98.
Jia, F. and et.al., 2014. Global purchasing strategy and International Purchasing Offices:
Evidence from case studies. International Journal of Production Economics. 154.
pp.284-298.
Sleuwaegen, L. and Onkelinx, J., 2014. International commitment, post-entry growth and
survival of international new ventures. Journal of Business Venturing. 29(1). pp.106-
120.
Hitt, M. A., Li, D. and Xu, K., 2016. International strategy: From local to global and
beyond. Journal of World Business. 51(1). pp.58-73.
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