JD Sports: Strategic Analysis of Market Position and Growth

This essay provides a strategic analysis of JD Sports, a British fashion retail company. It begins with an introduction to strategic management and its importance in the business environment. The main body of the essay includes a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors impacting JD Sports. A VRIO analysis assesses the company's valuable, rare, imitable, and organized resources. Bowman's Strategy Clock is used to analyze JD Sports' competitive strategies, and the essay discusses how JD Sports can maintain its market position during economic growth and increased customer power. The Ansoff Matrix is applied to determine strategic direction, and various international market entry strategies are evaluated. The essay concludes by identifying the most suitable market entry strategy for JD Sports, supported by relevant references.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BIODY ................................................................................................................................3
PESTEL analysis.........................................................................................................................3
VRIO Analysis.............................................................................................................................4
Bowman's Strategy clock.............................................................................................................5
Ways JD sports can maintain their market position in Economy boost and increase in the
customers power..........................................................................................................................6
Strategic Direction ......................................................................................................................6
International market entry strategies ...........................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is the ongoing process of the business that include business
planning, monitoring and the assessment of the operations through the strategies that helps to
achieve companies goals and objectives. Changes in the business environment create need to
implement new strategies within the business so company can grow toward the success.
This easy coves the case study of JD sports which is a British Fashion retail company
based on United Kingdom. They sell sports item to their customers like Men's Footwear,
woman's, clothing etc they sell various shoes and clothes from the different different companies
and their target customers are sports person.
MAIN BIODY
PESTEL analysis
Political
Political factors like governmental polices,foreign trade polices and tax structure have
huge impact on the JD sports (Aguinis, Edwards and Bradley., 2017). Change in tax structure
can huge impact on the company because it directly impact on their business operation and also
increase their product prices. Similarly Brexit impact the company negatively and government
changes their trade polices and increase their product export charges.
On the other side political support can create huge opportunities for the JD sports, and
they can effectively expand their business.
Economical
Every country has their own economical system and crises in the economy directly
impact on the operations and business of the JD sports. Increase in prices of raw material effect
negativity and it increase the prices of each product that sell by JD sports, on the other side
decrease I prices of the raw material impact positively and company can provide their product
and services in lower princess and satisfy customers needs.
Social
Trends in the customers change with the type in both footwear and clothing, JD sports,
should look for the latest trends, so they can expand their business international and satisfy the
customers needs. Using the old products within their business can have negative impact because
customers can switch their brand if they are not satisfy with product sell by JD sports.
Technological

In a global level JD sports should implement the latest technology within their workplace
because, on the global level it is necessary for the companies to provide the best quality services'
ad product also need to increase their production and with the help of technology JD sports can
take competitive advantages (Bailey, Pitelis and Tomlinson., 2020). Old technology can have
negative impact on the JD sports, because competition of the global level is higher than domestic
level and other companies can overtake them easily by using treading teleology.
Environmental
Government institutes are forcing the companies to use eco friendly process within their
workplace to save environment, on the other side JD sports, can improve their image within the
market by spreading the awareness of among the people related to the environment, and they can
also adopt eco friendly process within their business activities for example- JD sports can use
electronic vehicle's product delivery that will helps to save fuel and environment both.
Legal
JD sports is operating their business on the international level, and they are following all
the rules and regulation of the country wherever they are having their presences.
VRIO Analysis
Valuable
Financial resources- Financial resources of the JD sports are highly valuable and it can be
helpful for the company to take competitive advantages within the market where they are
operating their business. They can use their financial resources to invest in the technology and
R&D department for the market development and to take competitive advantages.
Products- Clothing and sport Footwear sell by the JD sports are valuable resources for
the company because they are made up of high quality material that helps to satisfy the needs
and demand f the customers and company can take competitive advantages.
Rare
Employees- The employees of Jd Sports Fashion Plc are a rare resource as identified by
the VRIO Analysis of Jd Sports Fashion Plc. These employees are highly trained and skilled,
which is not the case with employees in other firms (Hill., 2017). The better compensation and
work environment ensure that these employees do not leave for other firms.
Imitable

Patent- Patent's of the JD sports are difficult to imitate because it is legally allowed to
imitate a Patented product. Company can survive without taking the patent for each and every
product, and they can use the money to training their employees and take competitive
advantages.
Organisation
Distribution Network- Distribution Network of the Jd Sports is well organized and their
product are available on their online sites and customers can easily by from their site, most of the
places their stores are also available where they provide product in the stock so customers can
buy the product easily.
Bowman's Strategy clock
Low prices and low value added
Low prices and low value strategy is mostly used by the companies who just want to their
product and their focus is to sell their product rather than creating their market image. Company
create product with cheap material and sell it to the customers in lower prices (Kim., 2018).
Low prices
Low prices strategy is also used by the JD sports to sell their product in bulk., they
provide high quality product in lower prices as compare to the market price, they focused to sell
more products and bulk purchase helps them to earn profits. This strategy is helps JD sports is
taking competitive advantages, and they are having good position in the Uk market due to low
prices strategy.
Hybrid
In a hybrid strategy company create product that create higher value for the customers,
and they also sell it on the lower prices. It helps to create good image in customers mind and
helps to gain loyalty of the customers. JD sports can use this strategy to take competitive
advantages.
Differentiation
In a differentiation strategy company focus to create some differences in the Monopoly
poly product and sell their product in average rates. JD sports can use this try by customizing
their sports clothes and shoes. Thy will able to provide quality product in affordable prices and it
will also attract customers.
Focussed differentiation

In this strategy company create product with the high quality and sell it on the high
prices as well. This ca be useful strategy for the JD sports but it can take huge time to work
because customers who buy luxury product mainly focus on the Single brand (Knight and et.al.,
2020). But still JD sports also sell luxury product to their customers in higher prices.
Risky high margin
The companies using this strategy from the model charge high prices for the products that
are perceived as mediocre in value by the customers. It is the very risky strategy to opt for and
the position of the company is most likely to fail in the long-term.
Monopoly pricing
In the Monopoly strategy company sell the product that are use by the customers in their
regular bases and the monopoly leaders in the market as they are the only ones offering specific
type of product.
Loss of market shares
Companies who are not able to offer valuable producer top their customers, as basically
means that the customers will not buy the product if their products prices are so high. This kind
of business sell the average prices so customers can buy, and they can remain in competition.
Ways JD sports can maintain their market position in Economy boost and increase in the
customers power
During the economy boost and customers purchasing power increase, it can have both
positive and negative impact on the JD sports. Increase in the purchasing power of the customers
can have good Opportunities for the company and JD sports can attract customers by providing
offers to the customers and using the brand personalization strategies (Okumus and et.al., 2017).
It will help them to maintain their market positions, and they will able to take competitive
advantages within the market where they are operating their business
On the other side it can have negative impact on the JD sports if availability of the
product is lower and customers demand is high. To avoid the risk- It is necessary for the JD
sports to maintain their inventory so during the economy boost they can provide demanded
product to the customers, and they can satisfy their demand and needs and create better position
within the market.
Strategic Direction
ANSOFF Matrix

Market penetration
Market penetration strategy focus to increase the sales within the existing market of the
firm by selling their existing product. It helps to increase the sales of the product more and
increase the companies markets hares because customers are aware of that particular product.
Product Development
Product development strategy focus on the launching new product in the existing market.
Company create new product and introduce it to the market where they are already selling their
product, it Is less risky and company can easily sell their product and take advantages.
Market development
Market Development is the strategy in which company focus on the entering the new
market using the existing products. It helps company to expand their business on international
market.
Diversification
Diversification is the most risky strategy in which company enter the new market in the
new market (Suriyankietkaew and Petison., 2020). There are very rare chances them company
will able to success this strategy.
Best strategy among all
JD sports can use the Market development strategy to expand their business and take
competitive advantages within the new market. They can create some differences by adopting the
local culture and it will helps them to be successful within the new market.
This strategy is useful because JD sports already have developed product and if they will
enter the new market with the new product, then there are more chances that company will be
successfully.
Disadvantage of the market development strategy is that new market can be risky is their
culture is different and if people do not accept their clothes and footwear. It is necessary for the
JD sports to develop their demand according to the market demand before taking the entry.
International market entry strategies
There are various market entry strategies that can be used by JD sports to take entry on
the international market successful and achieve success within the new market. Here are some
strategies that can be used by leaders and managers of JD sports.
Partnership

`partnership and Joint venture strategies are most popular in which company take every
with the other company, and they both collaborate together. Both organization invest equally and
share both losses and profit equally.
Franchising
Franchising is most popular strategies in which company give their rights and business
model to the others to run their business (Veselovsky, and et.al., 2019). Both franchiser and
Franchisee share profits and loss according to their agreement. \
Direct export
Direct exporting is the market entry strategy where company sell their product without
establishing their product in the other country. They export their product through the ships and
Airways.
Best strategy for JD sports
JD sports can use Partnership strategy to take entry within new market, it is because this
strategy is less risky and if they failed to take entry within new market then both companies have
to pay their loses equally. Advantages of this strategy is their financial position will be strong
because two firms will invest in the same business.

REFERENCES
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