A Detailed Report on Jaguar's Global Business Environment Analysis

This report provides a comprehensive analysis of Jaguar's global business environment, utilizing various strategic tools to assess the company's internal and external landscape. It begins with a SWOT analysis, identifying Jaguar's strengths, weaknesses, opportunities, and threats, followed by a PESTLE analysis, which examines the political, economic, social, technological, legal, and environmental factors affecting the business. The report further employs Porter's Five Forces to evaluate the competitive intensity within the automobile industry, considering competitive rivalry, the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitute products. Finally, a value chain analysis dissects Jaguar's primary and support activities to identify areas for value creation and competitive advantage. The analysis concludes with insights into Jaguar's strategic positioning and potential future directions in the global market.

Global business
environment

Table of Contents
INTRODUCTION : ........................................................................................................................3
TASK ..............................................................................................................................................3
Meaning of swot analysis : .........................................................................................................3
PESTLE analysis of Jaguar is as follow :...................................................................................4
Porter's Five Forces.....................................................................................................................5
Value Chain Analysis..................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION :
The global business environment refers to the worldwide environment ,which comprises
different factors affecting business decisions, use of resources and capabilities, which is beyond
the control of any community or nation. The following report is based on Jaguar which is a
British multinational car manufacturing company , who manufacturer ultra premium and
luxury segment of cars (.Chao, , and et., al., 2020).. The respective organisation was founded on
4 September 1922 by William Lyons and the headquarters of the company is situated in
Whitley England .The report is going to cover the internal and external analyses of the business
environment of Jaguar. This report also cover the competitive analysis of the company with the
help of value chain analysis ,Porter's five ,SWOT and PESTLE analysis.
TASK
Meaning of swot analysis :
strength weakness opportunity threat is a study of internal factors and the external factors
of a company which can be control by the management to some extend and helps the
organisation to enjoy competitive advantage and planning of a new product
Following is the SWOT analysis of Jaguar :-
Strength
 Popularity: Jaguar is one of the most
popular name in luxurious auto-mobile
industry,it have a good brand image in
the eyes of people all around the globe.
 Research and development : Company
puts lot of efforts and money on
research and development for staying
ahead from it's complicators, by
providing latest features and
technology in their cars .
 Increasing sale:- The sale of jaguar is
Weakness
Product range:The company should increase
their number of products and introduce new
variants in order to give the potential customer
a choice.
Dependency on few models: the brand have
very few models and those models are also
very popular which leads to loss in potential
customers for the company. Problem in past:
Jaguar is known for is superior quality despite
of that there was one seatbelt problem of the
rear seat and the car was recalled by the

increasing ,which shows that the
goodwill and brand image of they have
earned in the market (Bhargava, and et.,
al., 2018).
comply.
Opportunity
 Target new market: The company have
targeted huge consumer countries like
India and china which have big amount
of potential customer.
 Demand: In the past few decades the
disposable income of the people have
increased which increases the demand
for luxuries items like Jaguar.
 Environment friendly:The brand has
reduced the emission of co2 and other
pollutants in order to show goodwill.
Threat
 Competition:Jaguar is facing strong
competition with the players like
Audi,Mercedes Benz , Porsche which
are targeting same audience .
 Financial instability of the market like
rescission and inflation leads to
reduction in the spending habits of
people , and they generally cuts the
luxuries firs which can affect the sales
of the company in a negative manner.
 The increase in the price of raw
material:The production cost of the car
increases with the increase in the price
of raw material.
PESTLE analysis of Jaguar is as follow :
PESTLE analysis:- is the study of the external factors which influence the businesses , study of
which can help in framing strategic and planning the future course of action by the management.
◦ Political factor:- The political stability and instability affects the brand like Jaguar if they
are planning to expend their production . The increase or decrease in tax and subsidies

by the government will affect the decision making of the company (.Begaa,and
Messaoudi, 2018)..
◦ Economic Factor:- like investment or disinvestment by the government in the
infrastructure development can also affect the development of Jaguar, The increase in
infrastructure development can provide more transport links resulting in improving the
production level and easy in distribution of products by Jaguar.
◦ Social factor:- are ever changing factor ,which effects every business. That is why
company like Jaguar are well aware of the religious values and believes system of the
people living in certain region.
◦ Terotechnological factors :- Jaguar is known for it's innovation and cut through edge
technology used in manufacturing these car , the company has established an
Automotive Virtual reality testing workshop which effective and efficient.
◦ Legal factor :- Brand is operating in many countries, and have to full fill various trade
laws and employees rights stated by different country. The Jaguar has registered and
copyrights all its car designs and technology used in making car.
◦ Environmental Factors:- Jaguar give environment a priority by addressing the
environmental issue and has implemented various legislation to reduce wastage and
emission .The company is working hard on creating a fuel efficient car using recyclable
items as aluminium (Anderson, 2018) .
Porter's Five Forces
It is a strategic model built purely for competitive analysis of an industry with the main
focus being on five major factors that shape up the happenings, strengths and weaknesses
concerning the relevant industry. Jaguar is a luxury automobile brand under Jaguar Land Rover,
it was established all the way back in 1922 with it's headquarters being in Whitley, Coventry,
United Kingdom. Porter's Five Forces model in context of Jaguar is listed herein. Competitive Rivalry-The state of a brand is directly affected by the existing competition
in the industry, the features the rival products offer and their brand strength. Despite the
automobile industry offering a high rate of market competition, the competitive rivalry is
moderate because the frequency of collaborations and joint ventures in the industry
doesn't let intense competition breed for long intervals. Jaguar is in a similar boat as it

faces regular competition from industry recognized brands such as Mercedes, BMW,
Porsche and Bentley but it has also partnered with BMW for joint operations. Potential of new entrants in the market-The ease of access of new ventures in the
market affects the profits and market share of existing companies(Begaa,and Messaoudi,
2018). The automobile industry offers very low potential of new entrants in the market
and this is due to the existence of extremely high entry and exit barriers imposed by a
need of a very large initial capital investment, dealing with brands with very strong
market recognition. Jaguar doesn't have to fear new entrants much as it caters to the
luxury car segment which has even higher costs and entry barriers involved. Bargaining power of suppliers-Suppliers can exert considerable influence on a business
based on their availability and quality of materials procured and distributed. The number
of suppliers available for the automobile industry is very high compared to the end
customers, Jaguar procures it's material from upwards of 3000 globally(Bhargava, and
et., al., 2018). However their bargaining powers are moderate as luxury brands like
Jaguar are industry recognized pioneers which get to set their own terms with suppliers in
many cases and most of their suppliers are increasingly becoming technology based
rather than physical goods. Bargaining power of buyers-The end consumers of any product is a major player for an
organisation as catering to their needs and keeping them satisfied is the essence of any
business. Most of the buyers of Jaguar make single informed purchases and are well
versed in brand recognition which makes their bargaining power moderate as there is
still no threat of backwards integration and the luxury car segment Jaguar caters to has
personalized needs catered of the car buyer making alternatives tough to settle for.
 Threat of substitute products-The amount of competition in the automobile industry is
relatively high and product differentiation isn't high enough to deter customers from
switching. This can directly affect a firm's profits as threat of substitute is very high,
Jaguar has strong substitutes in the luxury car segment such as BMW, Audi, Porsche,
Bentley which are all giants of the industry with a loyal customer base and excellent
product offerings.

Value Chain Analysis
Value chain refers to the sum of all the internal activities of a business which leads to it's
inputs being processed into it's final output(.Chao, , and et., al., 2020). Value Chain analysis is a
strategic management tool which is employed by businesses to gain and enhance their
competitive advantage by analysing the primary and support activities an organisation
undertakes to add value to their end products and services. Jaguar's value chain analysis and
results are listed herein.
Primary Activities-Jaguar has it's set primary activities in the value chain which are
routinely found in automobile industry in the luxury car segment which are as follows. Inbound Logistics-This activity of the value chain is associated with the delivery and
availability of raw material and it's processing(.Falcone, and et., al., 2020). Jaguar
employs a robust network of suppliers and gets it's material requirement from a varied
supply chain which includes big names such as Unipart logistics. Operations-After raw material has been delivered, operational activities are performed on
them to turn them into market ready goods such as packaging and assembly testing.
Jaguar has production plants setup in various locations and it each has multiple
departments working in tandem to ensure a smooth production of luxury cars. Outbound Logistics-These activities have a major role in making final goods accessible
to the end costumers(Farhoomand, A., and et., al., 2021). Jaguar has achieved sufficient
progress in it's outwards logistics by outsourcing it to field experts in the past such as
Ludwig and it continues to research and partner in the market for efficiency in it's product
delivery. Marketing and sales-These activities are the most important ones that are undertaken by
a business as they help a business advertise it's products as best in the market. Jaguar has
always focused on it's expert build quality and the variety in luxury cars it offers. It
undertakes huge advertisement campaigns even using Hollywood as a ground for it's
product display through films and props(Johanns, dottir and McInerney, C., 2018). Services-Jaguar provides a host of pre and post sales such as smart service plans and
vehicle health check services to it's loyal costumer base which is important as it instils
brand confidence and helps a business in enjoying high public appeal and consumer
loyalty.

Supportive Activities-Supportive activities are undertaken to supplement primary
activities and their execution and facilitation such as: Firm Infrastructure-The talent pool which runs a firm has a profound effect on it's
profitability and survival. Jaguar employs talented management and has even recently
undergone a CEO change with Thierry Bollore under whom Jaguar strives to become the
most profitable luxury brand in the world(.Kokodey, T., Gnezdova, and Lomachenko
2018). Human Resource Management-Recruiting talented employees, training them efficiently
and providing them with market best compensation is paramount for a big company like
Jaguar. It makes it's employees go through intensive training and their recruitment is also
equally intensive with behavioural rounds and tests(Lakatos, and Arsenopoulos, , 2019.).
It rewards hard work very well but the work life balance of Jaguar employees leaves a lot
to be desired. Technology Development-Automobile industry is fully driven by the technology instilled
in the vehicle and the innovation that goes into it's design. Jaguar has extremely futuristic
growth plans as it aims to go fully electric by 2025. It has also trimmed down it's
offerings and aims to move fully away from SUV's for the considerable future to focus on
new age cars with upscaling technology(Purnomo, 2021).
 Procurement-Decisions and activities regarding negotiation and purchase of raw
materials shape up the production process of automobile makers like Jaguar in a major
way(.Teece, D.J., 2018).. Jaguar has various suppliers lined up for it's material needs and
at the same time it's looking for new procurement technologies as it was the first
company to trial a fully digital supply chain recently.
CONCLUSION
The above report goes into detail regarding Jaguar as a brand competing and operating in
the highly competitive automobile industry. The Jaguar brand of Jaguar Land Rover luxury car
makers was rigorously analysed using SWOT, PESTLE, Porter's five forces and Value chain
analysis and it's clear cut strengths and weaknesses were highlighted. It's market competencies
and competitive advantages were focused on and it's weaknesses were duly stated. The brand

also going fully electric and ditching it's current line-up of cars by 2025 leaves it in an uncertain
yet interesting position for now.

REFERENCES
Books and Journals
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Purnomo, H., 2021. Teak furniture and business responsibility: a global value chain dynamics
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Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of
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