Strategic Management for JD Sports

This report discusses the strategic management techniques used by JD Sports to expand its business in Asian countries. It covers the current strategic position, external and internal analysis, and strategic recommendations. The report also includes a PESTLE analysis and Porter's five forces analysis.

Strategic
Management

Executive Summary
The present report is based on the JD Sports which is the largest company operate its business in
United Kingdom and various other countries across the world. Presently company is willing to
expand its business in Asian countries with the purpose of earning more profitability and for this
it is required for them to identify both internal and external environment of business. Moreover,
there are various strategic management techniques which are needed in terms of fulfilling the
purpose. For this various frameworks and models are used in order to identify strategic directions
for this company of Ansoff matrix and porter’s generic strategies. Moreover, it is also
recommended to the company that they should use cost leadership and market development
Strategies and terms of accomplishing growth in the Asian market.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................5
MAIN BODY..................................................................................................................................5
Current strategic position of company.........................................................................................5
Identification of competitive strategies along with strategic recommendations.......................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management referred the process of analysing and monitoring the overall performance
in order to manage it in an effective manner. It is quint essential for the company to focus on the
strategic development with the help of identifying prominent strategies which should be
formulated for company regarding their betterment of business. Moreover, if company does not
pay more attention towards a strategic development then it prominently impacts the operational
activities and functionality of company. Besides this it is analysed that it is an ongoing procedure
which is concerned with the management of Companies by considering detailed information of
the operations (Schilling and Shankar, 2019). Moreover, the basic objective of this assignment is
to understand the significance of strategic management for businesses so that suitable policies
are developed for the future purpose. Besides this the report is based on JD sports which is
developed in 1983 and operates its business in several countries including Denmark France
Spain and many more. In regard of this this sector in UK is quite big and total revenues are
generated was approximately 394 billion Pounds and now company want more strategic options
in terms of targeting other countries. Therefore, the assignment covers several topics including
internal and external analysis with strategic recommendations which is proposed by company
itself.
MAIN BODY
Current strategic position of company
External environment: It depicts the environment that undertake several types of external
factors that impact the operations of company. At the time of doing planning it is important for
company to determine existing position ration shop company which is essential for companies to
ensure that there is effective analysis of external environment is helps in accomplishing
prominent goals and objectives. Moreover, JD Sports busy leading UK specialist retailer and sell
sports and casual wear. The management of company prominently and both micro and macro
environment with the objective of identifying external environment. Macro environment is
defined Alpha condition which is available within the economy and prominently focus on
identifying several external factors. In relation with JD Sports they are willing to identify
existing position in the market therefore it is essential for them to analyse the Macro

environmental factors and it is done with the help of PESTLE analysis. In regard of this the
suitable discussion is mentioned as underneath:
PESTLE Analysis: This Framework is undertaken as the strategic management tool which is
useful for businesses to identify prominent impact of external factors on the learning and
functionality of business. In terms of JD Sports, it is essential for them to make effective use of
this framework which is helpful in identifying the current position of business. Moreover, there
are various elements which need more attention bi company in terms of having effective analysis
for the actual position in market. The prominent discussion is mentioned as underneath:
 Political: It undertakes various types of factors that need prominent focus by the
company in terms of analysing the impact of prominent factor. It includes suitable
policies which are developed by government including foreign trade rules political
stability taxation policies trade restrictions and many more (Velikorossov and et. al.,
2020). In terms of JD Sports, it is essential and helpful for them in order to carry forward
their operations with suitable support of political parties. In terms of carrying out suitable
operations in company they tend to follow prominent traits which are imposed by the
government of various countries. Moreover, in order to expand business in Asia it is
essential for computer to follow and considered suitable norms and Standards. Their
phone it helps in executing prominent operations in systematic manner.
 Economical: It effectively undertake alias factors required by focusing on the business
considering exchange rate inflation and deflation and many more. Fluctuation in these
factors and elements tends to change the buying power of customers full stop in relation
with JD Sports prominently focus on the economic factors by paying more attention
towards the changes in all the rates. It also leads to ignore the possibility of elimination of
sails because it formulates the policy and pricing strategies as per the changes of inflation
and deflation rates at the time of planning for effective expansion in Asian countries it is
required to focus on the prominent factors to eliminate risk.
 Social: It prominently undertake the income level lifestyle demographic culture and
many more which are undertaken as the prominent part of it. It is essential for all the
organisations including JD Sports by making sure regarding the perspective and
viewpoint of customers and focus on the requirements of their potential customers
(Pfarrer and et. al., 2019). As it is helpful in terms of meeting prominent expectations of

customers. For this company tends to formulate these strategies by paying more attention
towards them which is useful in sustaining their prominent position in market. All of its
products are sold in market by considering the Expectations and requirements of
customers which is helpful in determining them for the longer period of time.
 Technological: It prominent to undertake various aspects that undertake suitable
development and advancement in technology considering the innovation and suitable
development. In terms of considering the first choice of the customers it is essential for
companies to make sure that they prominently use advanced technology and focus on the
technological factors. In relation with JD Sports the tense to undertake updated and
advanced technology for market considering the suitable activities that leads to facilitate
in order to reach suitable number of customers. Buy this company prominently attract
large number of customer base which results in the improvement of customer base of
company.
 Legal: It undertake prominent legal regulations policies and Standards which are
developed by the government for the organisations and it is essential to carry forward
their operations effectively (Teece, 2019). In relation with JD Sports it is the largest
retailer in UK who operate its business in various countries. Currently companies running
text paint it’s business in Asian market and for this it is essential for them to prominently
make sure for the suitable policies which are followed by them. For instance, undertaking
the government policies and changes it is difficult for company to change its policies
rapidly. If the changes will not be made then it results in the suitable legal actions against
the organisation.
 Environmental: It prominent undertake various types of elements including Environment
protection Act corporate social responsibility and many more. It is essential for
organisations like JD Sports to make sure that all the standards and norms are concerned
with Environment protection by focusing in Asian countries in which the prominently
expand their business for the future purpose. It is beneficial for the company
prospectively suitable objectives in terms of capturing large market area and share.
Porter’s five force analysis: It undertakes the suitable combination of factors which are required
by focusing on the overall functioning of business considering the objective of analysing
competitive advantage in the market. It impacts the overall performance that impact the suitable

performance (Okumus and et. al., 2019). In terms of identifying the Macro environment porter’s
five force analysis is used by JD Sports as for this the objective of company is to facilitate the
effective identification the attractiveness of industry. It is helpful for the prominent forces of
company which is capable to identify and sustaining the position in market by completing
competitive advantage. The suitable discussion of prominent factors is mentioned as below:
 Industry Rivalry: This element depicts the suitable analysis of company undertaking the
effective level of competition in the market. It undertakes several competitors of JD
Sports in the same industry including foot locker under armour and many more.
Moreover, it represents the effective level of competition in the industry which is quite
high and results in the suitable issue of company as it tends to lose their market share
because of it.
 Bargaining power of suppliers: It effectively undertake the prominent external parties of
company which tends to supply raw materials regarding the production of commodities
undertaking the operational activities which is carried out in an effective manner.
undertaking the retail sector, it is quite large and considering the number of suppliers of
JD Sports which is very high and for this the bargaining power of suppliers is low.
Therefore, if one of the suppliers prominently sell products in the higher price than
company can contact and make their terms to another party considering the raw materials.
 Bargaining power customers: It effectively undertake the suppliers who tends to
purchase products from the company and these are considered as the customers.
Therefore, it is essential for them to make sure that customers are prominently satisfied
with their services and qualities of products which are sold by them and it is helpful in
terms of retaining them for a longer period of time and also leads to eliminate the
bargaining power (Dzwigol, 2020). Moreover, the number of competitors of JD Sports is
very high and for this is the bargaining power of customers is also high. Therefore, if the
customers will not permanently be satisfied with the product of the company then it
results in the enhancement of bargaining power.
 Threat of new entrant: The major threat for the well-developed and established business
is the threat from new competitor as if new business introduced in the sector then it tends
to eliminate market share for the existing one. In relation with JD Sports they tend to
operate their operations under the retail sector considering the business it is quite willing

to introduce them undertaking the several types of barriers. The business prominently
needs more investment in terms of taking entry in the sector as it shows the threat of new
entrant for JD Sports is low as a new business help introduced in the sector need more
investment.
 Threat of substitute: It undertake the suitable element bi offerings from mint benefits for
the user considering substitute of each product. In simple words if product permanently
replaced by the same type of commodity then it will be treated as a substitute for the
same product (Khosiev and et. al., 2019). In relation with JD sports the tense to operate
that business in the Retail Industry and for this they have various substitute and due to
this product, which are sold by them could be purchased by another store as well.
Therefore, the threat of substitute products is high because the products are sold by
companies is also replaced by the local products as well.
Internal Environment: It is undertaken as the effective combination of internal factors that leads
to impact the business environment in both positive and negative manner. For this it is essential
for the company to make sure that they are capable to identify internal environment by which it
undertakes the prominent strength of Companies (Wang and et. al., 2020). At the time of doing
planning it is identified that company use VRIO analysis it is useful in terms of identifying
defective level of competitive advantage of company stop in terms of JD sports the managers test
to use strategic management technique to identify the internal environment.
VRIO Analysis: This tool is useful by company considering the purpose of ensuring that they are
capable to complete with the prominent players of the industry. With the help of it undertake the
organisation in order to identify their strengths and capabilities. By considering the effective use
of JD Sports it is also capable to identify the internal factors in order to facilitate and achieve
competitive position as the leader of market. As the suitable analysis is mentioned as below:
Resources Valuable Rare Inimitable Organised
Use with latest
technology
Yes No No No
Effective
marketing
Yes Yes No No
Skilled
workforce
Yes Yes Yes No

Good market
image
Yes Yes Yes Yes
 Valuable: It effectively undertakes those elements which have capable enough to offer
suitable values two company which are undertaken as the valuable factor for them. There
are various resources that result as the value for company including Technology
marketing human resources and effective market image. Therefore, all of these are
valuable factors for JD Sports as it is useful for the company to carry forward operational
activities in an effective manner.
 Rare: It effectively undertakes the from land resources which are not acquired by all the
businesses and also there for business itself. With the factor use of Advanced technology
as it is not the player resource for JD sports because there are various competitors who
Use technology in order to carry forward their operational activities in an effective
manner (Darling and et. al., 2019). It undertakes prominent marketing skilled workforce
and effective image of market as the suitable key factor it is rare for company and also
not much easy to achieve effective business functions.
 Imitable: It undertakes the resources that cannot be copied by the other organisations. For
this effective marketing is not copied for JD sports as the marketing techniques also opted
by other organisations and can be copied as well. In regard of this talented workforce and
healthy market image are the two elements which cannot be imitated by other
competitors JD Sports.
 Organised: It effectively undertakes the prominent key elements and capabilities which
are organised by the company in an effective manner by treating as the special part of
company. For this skilled workforce is not relief under the organised resource for JD
sports as it is quite difficult to fulfil the prominent requirement of employees and also
keep them engage in the business (Bogers and et. al., 2019). For this the market image
should be considered as the organised element which is facilitate to carry forward the
effective operational activities properly.
Therefore, by considering the above discussion it is identified that there are several elements
that tends to result as the strength for company which is the essential part for them to keep a line

with the of the essence of business. Therefore, with the help of it company prominently capable
enough to meet both short- and long-term objectives effectively.
Identification of competitive strategies along with strategic recommendations
Porter’s Generic strategies: This model is useful for business in order to determine competitive
strategies that are helpful in accomplishing competitiveness in the industry. It depicts for several
alternatives that prominently focus on business in order to accomplish competitive advantage and
for this the major objective of JD Sports is to expand business in Asian countries and for this
they tend to use this model as it helps in facilitating best option to develop their business. The
prominent discussion of its elements is discussed as below:
 Cost leadership: It undertaking this option company can eliminate their cost considering
the purpose of enhancing profitability as by this the organisation needs to sale the suitable
commodities at the lower price and then it results in increasing profitability in the market
share (Ketchen Jr and Craighead, 2020). In terms of developing business in the Asian
countries JD Sports tends to pay attention towards the strategy in terms of eliminating
cost of commodities and require large market share.
 Cost focus: As per the strategy the organisation tends to eliminate the probable process
for small market considering the response of customers that can be eliminated in the best
possible Strategies for the upcoming period of time that can be formulated. In relation
with JD Sports they tend to select this option in terms of expanding their business in the
Asian market which is useful to launch their product at the low cost in small market
segment so that the response of customers can be identified considering their future
decisions.
 Differentiation: This strategy of a prominent guidance two business organisation in
terms of launching something new and innovative undertaking the unique market strategy
for the large number of customers is by this they can attract maximum number of
individuals (Simandan, 2019). In relation with JD Sports prominently focus on effective
expansion of business in Asian countries which is beneficial in order to acquire large
market area with innovative product.
 Differentiation focus: By paying more attention towards the option for the businesses
company can launch innovative product for the small market as by this they prominently
determine that the customers will be satisfied with their products or not (Tumidei,

Alexiou and Bourne, 2020). In relation with JD Sports the prominently use this method in
order to expand business within the Asian market as it helps in facilitating company to
identify for a new product which is suitable accepted by the targeted audience of
company.
Therefore, were considering the above discussion it is recommended to JD sports that they
prominently opt cost leadership strategy as by this company is capable enough to become the
leader of market. Despite from this it is helpful in order to attract large number of customer base
from the targeted market area which is the Asian countries.
Ansoff Matrix: This model is obtained in order to ensure that organisations get more aware
regarding their strategic decisions that helps in focusing them for their effective expansion of
business. For this there are various types of strategies which can be considered by organisations
and they are willing to accomplish growth in terms of using one of them (Pröllochs and
Feuerriegel, 2020). In relation with JD sports they are willing to expand their business in Asian
market and by this they need to consider several alternatives for it for their purpose. Moreover,
by paying attention towards the management of company they are capable enough in order to
select best alternative which is opted for the effective expansion. the prominent discussion of few
factors is mentioned as below in terms of JD Sports:
 Market penetration: As per this strategy company is capable enough to attract maximum
number of customers from the existing Market by offering existing products to them.
Moreover, considering this option by the company then there tends to form date effective
Strategies for market so that prospective customers can be acquired from existing market
that can be attracted prominently (Lak, Gheitasi and Timothy, 2020). Along with this in
terms of having effective expansion of business in Asian countries this is strategy is
helpful for JD Sports in terms of developing suitable strength for the existing market and
also tends to develop their business effectively. Moreover, it is helpful in order to attract
maximum number of customers for them.
 Market development: If any organisation selects this strategy then the prominently
offered their existing product in the new market so that market share can be increased. By
considering this strategy various number of customers are acquired from several location
(Stamevska, Dimitrieska and Stankovska, 2019). In relation with JD sports they are
willing to expand their business in Asian countries and by effectively opting this strategy

they can prominently offer their existing products by launching it in the new Asian
country that helps and offering them prominent growth and success in market.
 Product development: The respective strategy tends to facilitate organisation to offer
new product to their existing customers so that customers can be retained effectively
from the market. By considering the expansion plan of Business in the Asian countries JB
sports tends to opt this strategy as it is useful in order to increase their sales in the
existing market by enhancing their growth with the help of new product.
 Diversification: If an organisation introduces new product in the new market then it is
considered as diversification and it is quite risky as it need lot of funds in order to have
effective business in the market considering the prominent research and development
(Ravenda and et. al., 2019). It can be opted by JD sports to expand business in the Asian
country in order to launch new product in the nation as by this company prominently
enter in the new market by capturing new customers as well.
Recommendation and justification: By considering the above discuss the strategy it is
recommended to JD sports that market development is best and useful for them as it leads to
introduce and help them in launching their products in new Asian countries in which day did not
operate. Moreover, by considering this option company is capable to acquire large market share
and develop their business in those areas.
CONCLUSION
By considering the above discussion it is analysed that strategic marketing is the effective
process in order to manage operational activities in an effective way. For this manager will not
be capable to pay attention towards it as it tends to leave negative impact on the implementation
of business activities. At the time of pursuing planning to expand business in various locations it
is essential for the company to conduct effective market analysis. Considering this purpose both
internal and external market is identified with the help of various models and strategic directions
are analysed with the help of suitable frame works as well.

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