Strategic Management for JD Sports: Analysis and Expansion

This report analyzes the key factors and issues that can be faced by JD Sports during expansion. It includes a PESTLE analysis, VRIO frameworks, and SWOT analysis to identify opportunities and threats for the company.

Strategic Management

Executive Summary
This report analysis the key factors and issues that can be faced by the company while
expansion. This context indentifying the analysis of JD Sports company. JD Sports organisation
was established in 1983 by John Wardle, and David Makin , JD Sports is a top UK fashionable
retail company for sports , casual wear, and many more. The company wants to expand their
business in the Philippines country so during expansion , what are the factors that can effect the
company like external factors including political, environmental, technological, social and
internal factors like opportunities, threats , strength of the company and many more. So that will
support and assist thes company in expansion.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Pestle analysis.........................................................................................................................4
VRIO Frameworks.................................................................................................................7
SWOT analysis.......................................................................................................................9
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
Books and journal.................................................................................................................14

INTRODUCTION
Strategic management is the current preparation, observation, investigation and appraisal
of all need of an company requirements to meet their targets and and goals. Modification in
organisation surrounding will require company to perpetually evaluate their plan of action for
growth and development. This report shows about the JD Sports company strategic
management. JD Sports company was founded by in 1983 by John Wardle, and David Makin ,
JD Sports is a top UK company for sports , casual wear, and many more. This report defined
about the external factors of the company and also shows about the internal analysis and the
micro and macro environment of the company. The company want to expand their business in
the Philippines ,So here is some analysis of the factors that create a positive and negative factors
on the company(Farias, Farias, and Harmon, 2020).
MAIN BODY
JD Sports is a fashion Plc company and it is British Sports fashion retail organisation founded in
1983 by JohnWardle and David Makin. The company JD Sports is a expert of fashionable
creation like sports, casual wears and many more.
Aim of the company: The JD Sports company want to earn and make more earnings to
enhance their business and to make their company most popular and reputed.
Vision: They want to obtain more and more strategic equipments and tools that will help
the company to achieve their goals.
Values : They values is their first values towards the customers as they want to create
more customer base so their desires and needs are more valuable for the company. And the other
is honesty, appreciation, teamwork, ownership.
Pestle analysis
Pestle analysis is support the company to identify the external factors that can affect the
company because as the company JD Sports want to expand their business in the country
Philippines. Philippines is a small nation and their main origin is sea food and agrarian. Here
are some factors that can affect the company during expanding their business.

Political Factors: To come in and begin a fresh enterprise in a new nation the basic
action is to get approval from the system. The system of the nation may modify in the upcoming,
that may cause to variation of sentiments an thoughts between the organisation and the upcoming
and fresh authorities. Several different causes are also involve like labour norms introduce by
authorities, discipline coup vulnerability, standard of cost, and many more. But here some good
factors also for the company because the country authorities take many actions and decision to
convey the harmony and successfulness and the political surroundings has provide the
opportunity to the other people to come and enhance their business in their nation.
Economic Factors: The request for the merchandise in a country based on the several
components such as blow up, finance argumentation, involvement rates etc. Several components
for economic factors that require to be reasoned are teaching in the nation, existing phase of
enterprise rhythm, substructure attribute, unemployment proportion and many more. These
components support the organisation to interpret the disbursement form of the consumers and
thus suitable rating and arrangement of the goods could be finished. The Philippines nation has
economic enhancement in the system and different quick functional modification are being
interpreted to create their economy more lasting.
Social Factors: For trading a goods the organisation has to saw and express for different
social causes like, sex portions, instruction level, civilization, attitude against wellness and
surroundings,interest in sports etc. That things will going to support the organisation to interpret
the aim market and in the similar manner way, merchandising content will be planned to ambit
the correct goods to the correct consumer. The country Philippines provide specific importance
to education and sports and that will help the company to grab more people because the
disciplined and professed work environment is exist in the system and they are more excited to
participate in the every financial and social activities.
Technological Factors : The nation has make momentous improvement in the sector of
technological. Several technological enhancement have been acquaint in the nation and
individual will have modish and new creation about its expend and strategic judgement so that
the company made their expend in the nation. The country Philippines are applied fresh and
innovative tools and ideas to enhance and develop their industry. So for the JD Sports company
it is become more beneficial and advantageous for the company to expend their business because
they accept and adore new technologies.

Environmental Factors: The company Philippines is settled in the west pacific ocean
detached from further nations of the globe and their ecological surroundings is very rare. In the
nation Philippines there is no solemn problems of uncleanness. The authorities is creating fresh
modulate for the shelter of surroundings. The commercial enterprise field and commercialism
agencies and organisations are complying with the manual and norms dominant the biology
shelter. Since JD Sports is a sports and fashion, retailer it has to look into environmental factors
in all its market. JD Sports company is a athletics and fashion, merchant they has to visage into
biology components in every their industries . Elements like windward, uncleanness, climate
modification, consciousness of waste brass, and many more. With the investigation of these
elements, organisation can also delivers contents to their consumers.
Legal Factors: The system of the country Philippines is concentrating on the efficacious
governance in all sectors and specially in the market or in the company. The system of this
country has acquaint the norms for the safety of its minimal pay off, working hour , amenities of
wellness and education to all the individuals of the country. So the company JD sports have to
take care of the things while expanding their business in the country(Pasch, 2019)
Porter’s five forces model for JD Sports
Porter's five model is a business tool which used by any organisation to understand
efficiency, business strategies and profitability planning. These forces provide rigid structure to
competition within any organisation. There are many industries which have ensure probability of
profit and the correct time to enter the competition by using porter five model. Implementing this
model can be useful for JD Sports fashion plc to acknowledge the industry culture, attractiveness
and the level of competition in the market. The result of this analysis, can be apply to make some
availing strategy- wise decision by organisation that can improve whole performance of JD
Sports and it can be promising lead for long-term survival.
Threat of new entrants:
As JD Sports is in retail industry, so the entry of new comers or novice is markable
constant threat. New comers are able to build their retailing network in a market so conveniently,
whereas new novice also have initial capital investment high, it is also a constant threat which
are faced by organisation. These threats are managed and stabilized by JD Sports by improving
their services, performance and introducing new products by innovative ideas.
Bargaining power of suppliers:

The whole organisation is directly proportional to suppliers which provide raw materials
to an organisation,hence suppliers play an vital role. There is dependency relationship between
an organisation and suppliers. If suppliers came know about dependency relationship, they can
fluctuate and change their demands in prices. JD Sports manages the bargaining power of their
suppliers conducting a particular plan , list of suppliers, getting new and innovative rights from
suppliers to provide fine raw material to them and inventing and launching new products in the
market by variety of raw materials(Serafimova, and Petrevska, 2018).
Bargaining power of buyers:
Products are considered to be worthy when it can fulfil demand of buyers. The base of
customer decide the power of bargain, thus smaller customer base debits higher bargaining
power. In this case JD Sports have ways to tackles problems regarding this context by gaining
large amount of customers from different fields, segments, geography and by increase its
consumers of wide range and varieties of products offered to them at best and cheap prices.
Threats of substitute products or services:
As discussed that JD Sports is in retailing industry where there are probabilities of a new
product or service launched by any competitor is common, which may substitute current product
and it may fulfil demands of consumers in same way. JD Sports tackle this threat by making
services its priority than product, by modifying a product in such a way so that customers may
get satisfied and they have to worthy amount if they go for substitute product.
Rivalry among existing competitors:
Rivalry amidst or among existing and stable firms or organisations disclose the number
of competitors that give hard competition to JD Sports Fashion Plc. It can handle strong pressure
from rival firms, which can give a break each other's rate of growth. Profitability becomes low in
these industries as firms opt targets, presentation and launching strategies against each other. JD
Sports minimize these threats by managing, taking benefits of economics scale, brand valuation
and way better customer relationship management.
VRIO Frameworks
VRIO frameworks frameworks are used to analyse the internal factors of the company. It
also help the company to find the strength and weaknesses of the company. SO there is clear that
a GD sports company create several agonistic benefits. The organisation has accomplished this
through a broad reach of capability considering their powerful marque image, goods quality,

assemblage surroundings, consumer service, exceeding demand ligament and planetary
effect(Prykhodko, and Tomenko, 2019).
VRIO FRAMEWORK
VRIO Model
Resources Valuable Rare Inimitable Organised
Products Yes - - -
Financial Sources Yes Yes - -
Employees Yes Yes Yes Yes
Patents Yes Yes Yes Yes
Valuable –
Products : Products is very priceless for the company because the goods influence the
organisation to grab the clients and create profit and more earnings for the company.
Financial Sources : Financial sources of the company provide funds for accomplish several
stages the company JD sports and these functions of the organisation execute with smooth
surfaced.
Employees :Workers are more priceless due to the workers influence the organisation in carry out
their aims and targets for much enhancement and development of the organisation.
Patents : Patents is also very and much valuable for the company because They will going to
assist in devising a propriety for the firm in the marketplace(Minà, and Dagnino, 2016).
Rare – Rare informant are that resources that influence a system in accelerative and raising
strained benefits towards challenger in the marketplace. here are certain possession that are
not rare for the company like goods because in the market there are many further rivals
who providing similar goods as JD Sports company .
Financial Sources : The company JD sports has much better and finest fiscal extraction that help
the firm to execute the emplacement of a industry merciless.
Employees : The JD Sports firm has workers that are very loyal and focusing and also highly
proficient and enlightened , this is the reasoned employees are much and extremely loyal
for the company.

Patents : JD Sports company have a patents that are much restricted for its creation and
application that makes the patents of this company much rare.
Inimitable – These informant are those resources of the firm that cannot be derived by any
individuals because that are much unique. But in the organisation JD sports the materials and
the goods can easily imitate by any company the reason behind this the company use ordinary
substantial and informant for making their goods(George, 2017).
.
Financial sources: the resources of the company that is financial could be traced by anyone at
anytime either legitimately or unlawful.
Employees : Employees are not imitable because no body can imitate the employees the reason
is they have different skilled and knowledge every individual have different type of mind set
and quality so it is very unique for the company because each firm has several workers in
their organisation and every worker are different from other.
Patents : patents are proper registered by the government and a registered and legal things can
not be imitate by anybody , So patents are unique for the company.
Organised – Products: Goods and financial sources of the JD sports firm are not organised and
the Patents and workers are organised for the firm due to the company have to renew their
unobstructed in often times to affirm that the their patents an not copied and registered by
same.
SWOT analysis
SWOT analysis help the company to analysis and identify the factors of the company and
that factors is internal factors that create impact positiver or negatively as well as. The swot
analysis assist the company I analysis the strength, weakness, opportunities and threats of the
company that will become cause and a opportunity for the company so here are SWOT analysis
of the JD sports company:
Strength: the company JD sports has a very precise great image of their company and
marque in some foregone years because of their goods and services that are supply by the
company.

 The organisation hold back a great relation with the workplace because of that they
several and different things to offer. JD Sports company give a broad extent of quality
alternative to clients and consumers that create easy for the consumers to choose them.
The JD Sports company another capability is creation and technology adoption. This is very
beneficial for them because now a days every body more innovative and creative
products(Yilmaz, and Flouris, 2017).

 Effortless accessibility of the goods of the JD sports company because they have several
and different stores and outlets in many countries.
 JD Sports company focusing on the online -platform because it create more opportunities
for expanding their business and support the company to reach with high and wide
customer base.
Weaknesses:
 This is fictitious by the individuals that the company JD Sports have outmoded vesture.
They have many and different types of variety at their stores the collection in their outlets
is very large but they do no have that much fashionable clothes according to the current
trend.
 The another weaknesses of the company JD Sports is that they are applied the things and
doing that things extremity and that can raise the price and the working period also to
accomplish the project and task. Now a days the other organisation are using fresh
application to operate more efficaciously and expeditiously and that is inadequate in the
JD Sports Company.
Opportunities:
 JD sports have a worldwide occurrence as they are working in another countries. What
they decide was quite fewer riskier than sprightly inflowing the international souk by
send overseas and franchising.
 JD Sports Company can enhance their undergrowth that will going to assist and support
them to raise their commerce as individuals of similar wants or curiosity will obtain a
stockpile that will accomplish their requirements. Thus, the company can divide the
consumers according to their needs and desires(Ritter, and Lettl, 2018There are high-
quality and with better online prospects obtainable so, the company should clutch them.

JD Sports Company get chance to attract more customers and make their online existence
superior.
Threats:
 The chief threat for the company JD Sports is increasing the rivalry. As their challengers
are escalating their company and they are motionless relying on extra-large provisions.
 JD Sports are minimising their popularity in the market so, they should release more
amount of outlets and they have to concentrate on strategy and plan of actions that will
support them to grab and attract more and wide range customer base.
Bowman’s Clock Strategy
Bowman’s Clock Strategy is a form that investigates the alternative for planned
positioning like how a goods of the company should be placed to provide it the mainly
spirited place in the marketplace. The intention of Bowman's clock model is to exemplify
that industry have a assortment of alternative of that how to place a creation and that
positioning is lye on two proportions and that is cost and professed value.
Low price and Low value added: In this step it is not a much spirited arrangement for a
commerce. The goods are not distinguished and the consumers observe much modest
significance, in spite of a small cost.
 Low price: planning of low pricing is needed for the company to become a successful,
income edge on every goods and creation are low, but the large quantity of outcomes can
still produce large entire earnings. Rivalry in companies with less cost position is
generally powerful frequently like including wars of pricing of the products)(Mohamad,
and Bakar, 2018)
ybrid: This Step include the some components of reducing the cost of the products that is
related to the goods , but also few goods separation. The object and purpose is to
convince consumers that there is better addition prices and quality through the mixture of
affordable cost and satisfactory goods separation. This step or position can be more

beneficial for the JD Sports company , Particularly if the putting significance include is
provided continually(Sen, Bingol, and Vayvay, 2017).
Differentiation: The objective of this position is to provide consumers the largest level of
professed significance. In this position brand image is play very vital role as the
excellence of goods does. This very effective step or position for JD Sports company to
attract the consumers towards the company because a better excellence of goods with
powerful brand reputation and popularity and loyalty is highly best point to accomplish
the moderately costing and putting values that a this position is required.
Focused Differentiation: Focused differentiation objective is to locate a goods at the
largest costing levels, where a consumers can purchase the goods due to the high
professed values. This positioning is admire by the powerful and big companies, who
goals is to accomplish finest and top prices by extremely pointed division , endorsement
and allocation. This position can lead to the company JD Sports at much extreme large
earnings margin. But for this position can be done or applied by the luxury and biggest
brands.
Risky High Margin: This position is very extreme risk scheme because with this strategy
the company put elevated costing to purchase without providing any extra benefits like
in the terms of professed significance. If the clients and consumers constantly purchase
at this value, so the earnings of the company become high. But sometimes a consumers
can discover better located goods and creation that matches with their needs and desires
and at very affordable price with more benefits so that can become threat and loss for the
company(Sen, Bingol, and Vayvay, 2017).

Monopoly Pricing: In this position when in the market there is monopoly , There is only
few or might be one company provide their creation. They does not required to aware
about the significance and value the clients and consumers professed in the goods
because they have only one option that they can purchase or not.
Loss of market share: This step of this strategy is a formula or procedure for ruin in any
spirited industry or marketplace.
Business expansion method:
 There are so many methods for expanding their business for the company JD
sports like they can do joint venture, partnership, licensing with another company for
more profitability and expansion. In joint venture methods is a generally medium for
combined capital and more skills. In this the company gives up their impartiality to
another company that will going to expand with them so, This method is very beneficial
for the JD Sports company to expand and enhance their business(Bukhvalov, 2016).
s
CONCLUSION
From the above mentioned context it has been concluded that the company want to
expand their business in the Asian country but there are some factors that might be create impact
on the company so, in this context there is analysis of the factors like internal, external that can
become opportunity and threats as well as. So expansion in the country Philippines will be
become beneficial for them because the country acquire more technologies and believe in the
skills and more enhancement , so for enhancement and for making their strong brand image it is
very beneficial for them to expand their business . There are few suggestion for the company
also that for increasing their capabilities and profitability they should choose joint venture
method to expand their business because that will going to help the company to achieve and
execute their target and aims(Putz, 2019).

REFRENCES
Books and journal
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Management: Lifting the Yoke of the Neo-Classical Economic
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Accounting & Organizational Change.
Minà, A. and Dagnino, G.B., 2016. In search of coopetition consensus: shaping the collective
identity of a relevant strategic management community.International Journal of
Technology Management,71(1-2), pp.123-154.
Yilmaz, A.K. and Flouris, T., 2017. Enterprise risk management in terms of organizational
culture and its leadership and strategic management. InCorporate risk management for
international business(pp. 65-112). Springer, Singapore.
Sen, D., Bingol, S. and Vayvay, O., 2017. Strategic enterprise management for innovative
companies: The last decade of the balanced scorecard.International Journal of Asian
Social Science,7(1), pp.97-109.
Sen, D., Bingol, S. and Vayvay, O., 2017. Strategic enterprise management for innovative
companies: The last decade of the balanced scorecard.International Journal of Asian
Social Science,7(1), pp.97-109.
Putz, M.V., 2019.The Cube of Strategic Management: The Distinctive Advantage of
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Serafimova, M. and Petrevska, B., 2018. Female entrepreneurship in tourism: A strategic
management perspective in Macedonia.Journal of Applied Economics and
Business,6(1), pp.21-32.
Prykhodko, V. and Tomenko, O., 2019. Innovative approach to the strategic management of the
Olympic sport reform in Ukraine.
George, B., 2017. Does strategic planning ‘work’in public organizations? Insights from Flemish
municipalities.Public Money & Management,37(7), pp.527-530.
Ritter, T. and Lettl, C., 2018. The wider implications of business-model research.Long Range
Planning,51(1), pp.1-8.

Mohamad, B. and Bakar, H.A., 2018, March. Corporate communication and strategic
management: history, operational concept and integration. In15th International
Symposium on Management (INSYMA 2018). Atlantis Press.
Bukhvalov, A.V., 2016. Managerial theory of firm: Towards a synthesis of finance and strategic
management.