Strategic Management for JD Sports: Analysis, VRIO, and Competitive Strategies

Strategic Management

Table of Contents
INTRODUCTION .........................................................................................................................2
TASK...............................................................................................................................................2
1.External Environment Analysis....................................................................................................2
PESTLE Analysis........................................................................................................................2
2.Porter's five forces Model........................................................................................................4
3.Internal environmental analysis for strengths and weaknesses .............................................5
4. Identification of competitive strategics .................................................................................7
5.Strategic Directions of products, market and methods of expansion .....................................8
Methods of expansion ................................................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
1

INTRODUCTION
The strategic management is a process of setting organisational objectives, procedure and
goals to make the company more competitive. It recognises and describes those strategies which
are undertaken by the business organisation in order to attain an effective performance and
competitive advantages for their organisation. To improve the beneficial benefits it evaluate, plan
and implement the design at workplace. It looks at the effectively developed staff and resources
for the accomplishment of business goals (Velikorossov and et. al., 2020). The company chosen
in this report is JD sports founded by Wardle and David Makin during 1983. it is a UK expert
retailer of the fashion brand, casual wearing and sports. This brand is official provider and also
sponsor several football player, teams and association. This report will cover the external and
internal factors such as PESTLE analysis SWOT analysis and VRIO analysis, porters generic
strategies, expansion method, strategic directions and recommendation to the organisation.
TASK
1.External Environment Analysis
PESTLE Analysis
The PESTLE analysis is used to determine different factors that can impact the market
environment (Thomas and et. al., 2021). It explain about the operational situation that JD sports
fashion PLC will face that impact the decision making progress of this organisation.
 Political- This competent is related to the government interference that could impact the
firm and administration. The government has made many rule for the security of nation's
citizen and if the firm will not follow government guidelines then it will ban the company
and will shut the business. In context of JD sports, its international presence increase
sensibility of the company because of different alteration in political atmosphere in
different countries. A frequent change in government policies may destroy company's
operational activities by increasing many uncertainness in environment.
 Economical- This element has huge impact on the firm's economic situation in term of
declination or development. Due to the dynamic economic condition, a company get
impacted in a straight way or indirectly. In relation to JD sports, the economic growth
offer it a great level of several opportunities for its development and growth. Global
discussion strategies of the respective company is influenced by financial market place. It
2

operate its business in an efficient financial market in this case, it will lead an increment
in order to strengthening company's capability to enter in new market.
 Social- It refers to the company's social situation which can affect the attitude or
knowledge of a customer. Every society has different culture and way of doing business.
The social factors help the business organisation to better understand the method of
business doings and also understand about the customer's preferences (Capobianco and
et. al., 2021). In context of JD sports, by identifying the demographic area such as
gender, migration, age and other etc., will help the company to choose a right market
segment with a high growth potentiality. By using e- commerce and social media
platform the customer get inspired for online shopping.
 Technological- This factor is fast disrupting different industries across the globe. Success
of a company depend on this factor essentially as it play a vital role in organisational
growth. For this, it require an investment in research and development. The technology in
retail industry is still not reached maturity (Casañ, Alier and Llorens, 2021). In cases of
JD Sports, it has to identify the technological elements involved. It can be possible by
understanding that how new or latest technology can be helpful for the respective
company in order to increase customer's satisfaction and profitability and how it can
affect organisational finance.
 Legal- This factor affect both external and internal situation of the organisation as it can
impact company's action plan and their business process. The government has made
many different law and legislation in relation to the employees. Or business organisation
which are essential to follow by the all companies in a country. in context of JD sports,
this framework is not robust sufficient to protect company's intellectual rights. An
organisation should evaluate carefully before entering in a market as it may lead to the
theft of company's secret sauce so the overall beneficial edge. The respective company
should consider discrimination law, health and safety law, anti trust law in the retail
industry and many more.
 Environmental – These factors are related to the outcome of nearly surroundings ad
impact of ecological prospects. The recycling is a fast emerging norm rather the the good
things to to in the economy of United Kingdom (Ricci and et. al., 2021). In relation to JD
Sports, the extreme weather add the organisational cost of this company as it invest in to
3