Strategic Management: Analysis of JD Sports

Strategic management

Executive Summary
The report is based on JD Sports, a UK based organisation founded in 1983. The
organisation entered Asian markets in 2016 and till now have successfully opened 5 outlets in
India. The report focuses on different analysis strategies in order to understand the environment
around the business and establish their practices accordingly. Using PESTLE and VRIO analysis
the report focuses on external and internal strengths and weaknesses of the organization.

Table of Contents
Executive Summary.........................................................................................................................1
Introduction .....................................................................................................................................1
Main Body.......................................................................................................................................1
External environmental analysis ................................................................................................1
Macro (PESTEL Analysis) ........................................................................................................2
Micro (5 Forces Framework for analysing industry structure and the nature of competition)...3
Internal environmental analysis for identifying strengths and weaknesses: VRIO analysis ......5
Valuable......................................................................................................................................6
Rare.............................................................................................................................................6
Imitable.......................................................................................................................................6
Organized....................................................................................................................................6
Porter’s Generic Competitive Strategies.....................................................................................7
Strategic directions & methods of expansion .............................................................................9
Conclusion and Recommendations ...............................................................................................10
References......................................................................................................................................11
.......................................................................................................................................................11
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Introduction
Strategic management is a never ending process revolving around planning, organising,
staffing, execution and monitoring all such activities that are important for the organisation. It is
the thread that synchronises all the individual efforts and activities and move them towards
common organisational objectives. The focus of strategic management on planning and
executing such strategies that helps the organisation archive goals and objectives effectively and
efficiently. JD Sports was established in 1983 by John Wardle and David Markin. The
organisation is biggest supplier of sports, casual and fashion wear clothes and accessories. By
2011 the organisation had a well situated market in Ireland, Spain, Germany, Netherlands and
France. The organisation is UK based and entered Asian market in 2016.
Major threats faced by the organisation are Threat of substitution, threat of new
entrances, threat of rivalry, power of supplier and power of customers. There are countless
substitutes available for sports wear fashion in global market, along with introduction of new
businesses entering market with creative strategies to establish a grip over customers. In global
market there is excruciating competition along with the suppliers and customers having the
power to influence the market for the commodity. JD Sports have to use strategic management
practices effectively to overcome these threats.
Main Body
External environmental analysis
Also termed as macro primary analysis, this approach focuses on competitions in macro
environment, analysis of sector the organisation is associated with and the information and data
collected from the same is used on organisational growth. Macro environmental forces deals with
broader concepts that influences the operations of a business within the dimensions of society.
It involves all the external stakeholders like customers, suppliers, investors, etc along with the
market forces that flows freely like demand and supply. External business environment also
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