Strategic Directions for JD Sports PLC: A Report on Asian Expansion.

This strategic management report analyzes JD Sports PLC's potential expansion into the Asian market. It includes an external analysis using PESTLE and Porter's Five Forces to identify opportunities and threats, and an internal analysis using VRIO to assess strengths and weaknesses. The report explores competitive strategies based on Porter's generic strategies and suggests strategic directions for market, product, and service expansion. It also considers various methods of expansion and provides recommendations for JD Sports PLC to create a competitive advantage and achieve its strategic objectives in the Asian market. The analysis emphasizes the importance of understanding the political, economic, social, technological, legal, and environmental factors, as well as the bargaining power of buyers and suppliers, the threat of new entrants and substitute products, and the rivalry among existing competitors. This document is available on Desklib, a platform offering study tools and solved assignments for students.

Strategic Management

Table of Contents
TASK 1............................................................................................................................................3
External Environment Analysis.......................................................................................................3
PESTLE Analysis........................................................................................................................3
Porter's five forces Model: .........................................................................................................5
Internal Analysis..............................................................................................................................6
VRIO Analysis............................................................................................................................6
Identification of competitive strategies............................................................................................8
Porter's Generic Strategies..........................................................................................................8
Strategic Directions..........................................................................................................................9
Market:......................................................................................................................................10
Product: ....................................................................................................................................10
Services:....................................................................................................................................10
Methods of Expansion:..................................................................................................................11
RECOMMENDATION.................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and journals....................................................................................................................14

INTRODUCTION
Strategic management is related to the recognising and describing of the strategies that all the
owners can carry to accomplish a good performance and a competence benefits for the
organisation. It is the procedure of setting objectives, process for making a firm more
competition. JD sports PLC has been chosen as a base company which is founded by John
Wardle and David Makin in 1983. It is a major UK expert retailer of fashion brand , sports and
casual wearing. This brand is an official provider and sponsor of various football teams, players
and associations. This file covers external analysis to recognise opportunities an threats through
PESTEL and Porters five forces, internal analysis to recognise strengths and weaknesses by
using VRIO. This will also cover competitive strategies by Porters generic strategies, strategic
directions and some methods of expansion.
TASK 1
External Environment Analysis
PESTLE Analysis
This analysis gives a great explanation about some operational situations which JD sports
fashion PLC will face which affect the decisions made within the organisation.
Political:
This factor is associated to governance which may impact a firm or an administration. This factor
is always at the risk of being targeted by the government as it has its own precedence that is
security of the citizens. The government will ban the firm if it does not attach with danger and
health related regularisations. In case of JD sports PLC, the presence at an international level
increase the sensibility of a firm due to the various alterations in the political environment of
different countries. Frequent change in the policies of government may destroy the working of a
firm by increasing the uncertainness in the environment (Kandybko, Ryazanov and
Khachaturian, 2019).
Economical:
This factor has a huge effect on economical situation of a firm either development or declination,
lengthy chance in the marketplace. If economical condition is dynamical, then unquestionably it
will impact straight away or indirectly to the firm. In context to JD sports PLC, growth in the
economies offers a great level of opportunities in the growth and development. The global

discussion strategies of this firm which is affected by the finance marketplace effectivity as
operating in a great efficient financial market leads for the increment in strengthening the
capability to enter in the new market (Bénet, Deville and Naro, 2019).
Social:
This factor means to the social situation of any firm which can impact the knowledge or attitude
of a customer. In relation to JD sports PLC, by studying the demographic features like age,
migration and many more will help this firm in selecting the right market segment with high
growth potentiality. The arrival of this social media and an e-commerce platform has inspired
online shopping attitude between consumers.
Technological:
This factor has a huge impact on the business enterprise or firm as a little increment in the
practical application will surely affect the organisation. The success of any firm depends on this
factor alone as this plays a good part in the growth of any industry. This firm has the chance to
increase its investigation and growth assets to grow the effectivity of the firm. In relation to JD
sports PLC, as utilisation of social media became common in the market and specially for the
business environment. This firm can also purchase the chances offered by the social media
marketing to increase the performance of a business.
Legal:
This factor impacts both internal and external situation of an organisation. This situation can
impact plan of actions and process of an business enterprise and can control security and
regularisations (Koseoglu, Law and Dogan, 2018). Modifications in legitimate systems may
impact the firm by imposing new involvements. In case of JD sports PLC, this will allow the
firm to follow various laws of health and safety to make sure about the security of all the labours
working in a firm. It also need to study for the information protecting rules to secure the
customer data.
Environment:
This factor primarily relates with the outcome of the nearly surroundings and the effect of
ecologic prospect. This feature is related with natural surroundings and the way it impact any
enterprise. This factor also offers some opportunities through which it can increase its
environmental program which will permit it to modify its business performance. In case of JD

sports PLC, to adopt the effective patterns of waste management in the administration that are
situated in near urban areas are very important.
Porter's five forces Model:
This model that identify and analyse competence to study or to interpret the competition of a
commercial enterprise surroundings and assist in rising the organization's long-term profit. This
will aid to study that where the strength present of a firm which is very helpful for knowing the
strength of any firm's to determine the competence place (Nazarova and et. al., 2019).
Bargaining Power of the buyers:
In this, buyers have more ability to demand less cost or good choice that is up to what level
consumers are capable to put the entire firm under the force. Here consumer has a lot of power
when their bargaining power is good. Bargaining power of consumer is high because of the
presence of different sellers in the market. In case of JD sports PLC, it solve the issues by getting
large consumers from different segments by improving the portfolio of commodity so that buyers
of this firm has more options to purchase (Certo, Raney and Albader, 2020).
Bargaining Power of suppliers:
This means an effective bargaining power which permits the supplier to exchange a good amount
or lowest choice raw materials to their buyers. So, this force examine how much ability a firm's
provider has. The increase in the supplying capability makes it adventurous for the suppliers for
the successful development of the firm or any industry. In case of JD sports PLC, it directs the
bargaining power of their providers by modifying their database of suppliers, acquiring good
rights from suppliers to provide raw substances to them and investigating fresh commodities
from various raw materials.
Threats of new entrants:
This force regularize how simplex or not it is to go into a particular firm. New entries convey
new reach and wishing to acquire industry share and also in the similar manner, it impact the
power of a firm. A little time and money it costs for a contender to get into the market and will
become a booming challenger, the more organization's place could be diminished. In case of JD
sports PLC, this threat is directed by continuous increment in their work and to initiate fresh
commodities (Gallo and Tomčíková, 2019). The firm also enjoys economic system which new
entrants don’t enjoy. JD Sports have finances to consume on investigation for brand-new
commodity creation and modify their quality.

Threats of substitute products:
This force is concentrating on the alternatives. It is particularly frightening when purchasers can
comfortably discover the optional commodity with better costs and good standardized
commodities. Also when purchasers can move from one product or service to the other with a
less cost. In context of JD sports PLC, this will decreases this threat by making a service more
crucial than a commodity, by locating them in that manner that consumers may have to give
more if they choose for an alternative commodity.
Rivalry among existing competitors:
This force is the important element on how competence and profit of an industry or firm is. And
this force is in use to determine how utmost the actual competence is in the marketplace (Lin and
et. al., 2021). It will be at peak level because of the firm's enhanced economic process and
supplying of commodities to meet all the requirements. In relation to JD sports plc, it can
decrease this by enjoying economic system of scale, brand interests and good consumer relations
management.
Internal Analysis
VRIO Analysis
This analysis is specially aidful in growing brand-new enterprise schemes by helping
systematized investigation and assessment of all present touchable and unidentifiable resources
and abilities along the administration's value chain in case of their value of creating long-time
competitory benefits.
Valuable:
Resources are also valuable if they assist a firm to modify the detected the worth of consumer.
This is done by improving distinction and diminishing the cost of the commodity. The resources
that cannot run into this situation, results to the competence disadvantage. It is very critical to
proceed the investigating the value of the resources because continuous altering in the interior or
extrinsic situations can make them inferior valued or not profitable at all. This firm represents
that the financial sources are more valued as these help in investment into outside opportunities
that rise (Haynes, 2018). These also assist JD Sports Fashion Plc in fighting the outside threats.
According to the VRIO Analysis of the selected firm, its localised eatable commodities are
valued resource as these are extremely distinguished. This forms the detected value for these by

consumers high. These are also valuable more than the competence by consumers because of the
distinction in these commodities.
Rare:
Resources that can only be obtained by single or fewer firms are taken as very infrequent. Rare
and valuable resources aid short-lived competence benefits (Okumus and et. al., 2019). On the
other hand, the condition when more than fewer firms have similar resources or utilising the
ability in the same manner, results to the competence equation. This is due to the firms that can
utilise same resources to use similar schemes and no administration can accomplish a good
performance. In case of JD sports PLC, localized eatable commodities are found to be not rare as
known as it s very rare according to this analysis. These are easily supplied in the marketplace by
different competence. This means that individuals who are in the competition can utilise these
resources in the similar manner as JD Sports PLC and control competition benefits. This means
that the localised eatable commodities leads to competence equality for this firm. As, this
resource is valuable and also rare, this firm can now also make usage of this resource. The
workers of this firm are very rare as known by this analysis which is applied on the selected
organisation. These workers are extremely disciplined and good, which is not the case with
workers in other companies. The good benefit and workspace make sure that these workers do
not leave for other companies.
Imitabilty:
A resource is expensive to copy if other firms that doesn’t have this will not imitate, purchase or
replace it at a sensible cost. Imitation can happen in two manners: by immediately copying the
resource or giving the comparable commodities. In context to JD sports PLC, the commercial
enterprise resources which are financial for JD Sports PLC are expensive to copy as recognised
by this firm through this analysis. These resources have been obtained by the firm through
extended profitability over the period of time (Bayiley and Hailegiyorgis Behaylu, 2020). New
entries and competition will need same profitability for a long duration to collect these sum of
money of finance resources. The localised eatable commodities are not that expensive to copy as
recognised by this analysis of JD Sports Plc. These can be obtained by competence as well if
they spend a good amount of money in investigation and growth. These also do not need long
time and experience. So, the localised food commodities by JD Sports Plc give it with a short-
lived competence benefits that competitors can too adopt in the long time.

Organized:
The resources alone do not consult any benefit for a firm if it is not arranged to acquire the
amount from them. In context to JD sports PLC, these resources are utilised in a strategical
manner to spend at the correct place to make a good utilisation of possibilities and conflicting
danger. So, these resources turn out to be a source of continuous competence benefit for JD
Sports PLC. The copyright of JD Fashion PLC are not good organised as recognised by the JD
Sports PLC who has done this analysis (Mariina and Tjahjadi, 2020). This refers to the firm is
not using these copyrights to their total capability. An unuitilised competence benefit survive that
can be altered into a continual competence benefit if JD Sports PLC initiates marketing copyright
commodities before its expire date in the market.
Identification of competitive strategies
Porter's Generic Strategies
Porter's generic model is described as a marketing tool which is implemented by companies to
manage their business operations which could assist them in gaining growth, profitability and
creates sustainable competitive advantage for them (Mita, Ochie’ng and Mwebi, 2017). It very
useful tool which is required to examine the potential niche in which organisations could
competitive advantage in the same industry over others. In context to JD sports, the Porter's
generic framework has been done below with explanation:
Differentiation
This factor of the model is a kind of competitive strategy which facilitate companies an
opportunity to manufacture products or services that are different from their rivals or competitors
in the same industry. The company could implement this strategy through creating creative
advertisements, distinctive goods, quality products, exceptional services or introducing new
technology in the market to accomplish success and growth. Companies applying this strategy
depends on the loyalty of customers towards their distinguish products or services. This strategy
could help companies in reducing their competition if customers accept and remain loyal towards
brand.
Cost Leadership
This factor of the model is a type of competitive strategy which helps companies in
manufacturing products at lower cost and seeks large-scale production (Edwards, 2018). This
strategy also assist companies in under cutting prices of competitors through various techniques

such as penetrating pricing and yet could offer quality products to their potential customers by
gaining reasonable pricing (Stoian and Gilman, 2017). The main purpose of executing this
strategy by organisations is to maintain the similar price as their competitors while minimizing
the cost related with operating business.
Focus
This is another component that comes under this model which explains that company
could choose between cost leadership and differentiation. This simply means that companies
want to target their potential market and develop products or services according to their choices
and generate value along with loyalty of customers. By implementing this strategy company
develop a customer base that remain loyal and could contribute to profitability and growth of
companies.
Cost Focus: This strategy defines that companies compete in market on the basis of price
in order to target limited market audience (Ibrahim and Harrison, 2020). This does not mean that
organisations implementing this strategy are offering cheapest price instead they are charging
lower cost in comparison to their competitors in the market.
Differentiation Focus: This is the second strategy that comes under focus factor which
assist companies in producing unique and different products or services in market that could fill
the gap or demand of customer. According to this strategy companies offer products with unique
feature that could a large customer base.
In context to the respective company, it could implement differentiation focus strategy
which could help it in meeting demands of customers and accomplish competitive advantage in
the market over others. This could also assist company in producing products with unique
features which could develop a large customer base. This will also help it enhancing its
profitability and growth in the market.
Strategic Directions
Strategic direction is related to the strategies that require to be implemented for an organisation
to progression with regards to its imagination and accomplish its objectives. It makes sure that a
businessman and an administration can convey the value of worker's activity and their
improvement to accomplish the goals of a firm.

Market:
JD sports PLC is a firm located in a United Kingdom which is related to the sports, fashion and a
multichannel retailer of a branded sports, casual wearing and to combine with global brands.
Market of this firm consider a collaborative and a cooperative method with a third party brand
which is a main thing to make its commodity offering in addition to the continuous look at the
growth and develop it with a care curation suggestion to make sure that it will stay alone and
with the trend. It has various competitors in the market like Foot locker but this firm use various
methods for the success in the market like it use check out survey method for the consumers
which is very effective that is carried out by the consumers. JD uses pages on its websites to
advertise these commodities as well as sending emails to the early offered commodities for
selling commodities more fast and in a clear stock (Hietala and et. al., 2019). Main purpose of
this selected organisation is to deliver lengthy period of time continuous net profit development
to raise the total stockholder returns by share cost execution and net profit, while continuing the
finance ability to spend in the development and the continuous of the theory. It is a type of
Public limited company which contains collaboration is at the mid point of the way a firm is
working, with whom a firm is working and towards what the firm is performing. These are
natural participants of a team, and they try to perform with the customers in a crystal clear
manner, as an expansion of their team.
Product:
This firm of sports and fashion brands contains its various commodities in the market such as
Footpatrol, Finish Line, Shorpalaca, DTLR Villa, Livestock, Sprinter, Sports Zone, Chausport,
Sizeer, JD Gyms, Tessuti, Scotts and Mainline. Its outdoor brands include Blacks, Millets,
Ultimate Outdoors, Tiso, Go Outdoors, Go Fishing and Naylors, Jordan, Adidas,Vans, Puma,
Champion, Timberland, Sonneti and so on.
Services:
JD sports offer various services to its consumer sin the market which is very important for every
business to stand in the market for making its production and profit in the market. It offers
consumer services in the market to manage consumer objections, giving proper answers and
option in the time limits, following to make sure about the declaration. Keeping all the data of
consumer actions, procedure of consumer reports and record written data. Following
communicating process, road map and plan of actions (Kuchta and et. al., 2019). It has also

offered various services to make all consumers very efficient and effective towards their working
process. Various sports businessperson shows the involvement of contestants, specially in
written agreement negotiations. They also manage support, relationships with people, and
business enterprise plan.
Methods of Expansion:
Licensing:
Licensing is referred to as a business agreement, wherein a firm permits the other firm by
supplying a legal document of temporarily accession for its intellectual place rights, that is
manufacturing procedure of a firm, brand name, copyright, and so on. In context to JD sports
PLC, Young fashion giant JD Sports Fashion has autographed a great deal with sports brand
Fila to sell and manufacture the brand in the UK, Ireland and Channel Islands (Hutaibat, 2019).
This partnership permits them to progress the scheme of delivery good quality, sport style brands
to the consumers.
Franchise:
In context to JD sports PLC, franchising can be one of the method to expand the business in the
market as this franchise is a way of distributing the commodities or services included with a
person. Franchisors utilise the power of authorization as a method to make a consumer honesty
to force more consumers and to support them. Foreign expansion is a very easy and fast way,
since the franchisee have the localized understanding of an industry.

RECOMMENDATION
It is recommended from the above report that PESTLE analysis and porters five forces model is
the best way to recognise the environment of the firm that is micro and macro both. As PESTLE
analysis is a normal and easy tool that assist a firm to win as permits an enterprise individual to
increase an agreement of the broad marketplace in which they are in operation. Broadening the
knowing to see outside components provoke strategical thoughts which results to the good
strategies. Porters five forces model essential tool for knowing the primary competitory forces at
activity in a business. This can assist to measure the attraction of a firm, and a moment regions
where they can set their strategies to increase the profit. It is a very helpful tool that it assist the
firm to measure the competence power at play in their business and act in strategical plan that
accounts for the particulars of their business structure and the comparative force of providers and
purchasers.