MS60043E: JD Sports Strategic Marketing Report - Asian Market

This report provides a strategic marketing analysis for JD Sports Fashion Plc, a UK-based sports fashion retailer, aiming to expand its business in the Asian market, specifically focusing on Myanmar. The report begins with an introduction to strategic marketing and the company's background. It then delves into an external environmental analysis using PEST and Five Forces frameworks to identify opportunities and threats within the Myanmar market. The political, economic, social, and technological factors are examined, alongside the competitive landscape. An internal analysis is conducted using the VRIO framework to assess the company's strengths and weaknesses. The report identifies competitive strategies and strategic directions for expansion, culminating in recommendations for JD Sports' successful entry into the Asian market. The analysis considers various challenges such as political instability, economic conditions, and competition, while also highlighting opportunities related to demographics and technological advancements. The report emphasizes the need for effective strategies to establish a strong market presence and build a loyal customer base.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
External environmental analysis for identifying opportunities and threats for JD Sports..........1
Economical Internal environmental analysis for identifying strengths and weaknesses............5
Identification of Competitive Strategies.....................................................................................7
Strategic directions and methods of expansions:........................................................................8
Recommendation.............................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic marketing is method through which company differentiates its products and
services from the other competitors by focusing on strength to provide better services and value
to its customers(Akyuz, and Gursoy, 2019). Strategic marketing planning include setting goals
and objective of business, analysing all the internal and external factors of business, product
planning, implementation and tracking the growth of organization. This report is based on JD
Sports Fashion Plc, it is British sports fashion retail company, located in Bury, Greater
Manchester, England. Company was listed on London stock exchange, JD in JD sports stands
for the initials founder of the company, John and David, in 1981. Now company is looking
forward to expand its business in Myanmar for the better growth and opportunity. But there are
various challenges for the respective company to start its business in Asian Market. Below
report explain various challenges and opportunities for JD sports to start its business in
Myanmar. This report is based on internal and external analysis of business to identify the
various opportunities in Asian market. This report also include internal analysis of various
strength and weaknesses of company, identification of competitive strategies of business by the
various theories and models. In the last strategic directions and methods of expansion of
business in Asian market.
External environmental analysis for identifying opportunities and threats for JD Sports.
External analysis of business refers to the all the external factors that have an affect on
the decision making process of the company(Amason, and Ward, 2020). In the context of JD
sports, company has strong market presence over fashion and sports industry, in order to expand
its business in Asian market company decided choose Myanmar to introduce its product and
services. To analyse the external challenges and opportunities for its business below PEST
analysis is explained.
PEST analysis of JD sports:
It is a framework or tool that used to analyse the macro environment that may have
impact on an organisational performance. This tool is useful when company invest or start its
business in foreign market. In the terms of JD sports, there are various challenges and
opportunities for company to expand its business in Asian market. PEST analysis of company in
Myanmar could assist it towards better marketing strategies according to the market
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environment of respective country. Below is detail explanation of PEST analysis of JD sports is
explained:
Political factors: These factors refers to the degree a government intervenes in the
economy or a certain industry. All the influence that a government has on business could be
classified under political factor(Anokhina, Maksimov, and Seredina, 2019). This include
government policy, political stability or instability, tax policy, trade restrictions etc. in the
context of JD sports, in Myanmar's political factor may become challenge for the company to
start its business. Country is facing conflict between the various areas, that may have impact on
the business of JD sports. In order expand the business of JD sports in Myanmar, mangers of
respective organisation have make effective strategies and efforts for effective start and make
entrance in Myanmar. Further, Myanmar at the movement caught between India and China
because of the conflict between two countries and both of these counties have influence in
Myanmar. Conflict between these countries may affect the market of Myanmar, also if JD sports
want to start its business in this country, it require huge efforts to develop marketing strategy
according to the market environment of the country.
Economical factors: These factors are the determinates of a economy performance of
the country(Barney, 2020). Economic factors involve economic growth, inflation rates,
exchange rates, interest rates etc. in the context of JD sports, the economic condition of
Myanmar is not strong as compare to the other countries where company already operating. To
start business in Myanmar, company have to face economical challenges and this could have an
impact on the business of respective company. Furthermore, because of COVID 19 virus the
tourism from foreign countries is also affected. Low tourism rate in the country may have an
impact on future business of JD sports. However, it is expected that from 2021 things might
begin to get better because of resuming exports, thus it is opportunity for JD sports to analyse
the current and future market trends of the country and set-up business accordingly.
Social factors: This factors refer to the cultural and demographical trends of the society,
social norms and pressure influence the buying behaviour of customers. In the context of JD
sports, In Myanmar people are very religious and right now there is significant adult population,
it could be opportunity for the company to start business because of adult population in the
country. Lot of young people in the country may show interest to buy the products and services
of the company. JD sports can introduce sports and fashion wears according to the culture and
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religion. In Myanmar the people are looking forward to contribute in working sector, so it could
be easy for the company to get skilled and capable employee in order to have new start in
Myanmar. Thus, social factor reflect various opportunities for the business of JD sports.
Technological factors: This factor refer to the operation of new technology and
innovation that may affect the business of industry and the market favourably and unfavourably
of product and services (Bianchi, Mingo, and Fernandez, 2019). The change in technology
environment can be either opportunity or a threat for the business of particular industry. In the
context of JD sports, Myanmar has continuously growing and majority of young people are
technologically able this could be beneficial for the company to invest in technology
development within the country that helps company to attract young people towards the brand.
Thus, technological factors may have opportunity for the company in order to start business.
Thus, for the above analysis of PEST analysis it can be understand that there are various
opportunity and challenges for the company in order to expand its business in Myanmar. It
required effective strategy and efforts from the company to make strong presence in Myanmar's
market. From the various challenges that could affect its business and growth in the country.
Five Force Framework for analysing:
This model that helps to understand the competitive advantages of business environment,
and identification of appropriate strategy for potential profitability of business(Bryson, and
George, 2020). Five force model is useful because it helps to understand all the forces in
industry environment that may affect profitability of business. In the context of JD sports,
company can build sustainable competitive advantages in retail industry. To start business its
business in Myanmar five force model can help company to understand about the competition
level in retail industry. Below is detail explanation of five force analysis in the context of JD
sports.
Threats from new entrance: This refer to the capacity and ability of new entrance in
the industry to become threat for pre existing companies. In the context of JD sports, company
has strong market presence over the multinational countries, also company has high capital
investment over the year. In Myanmar JD sports may face low threats from the competitor
because it require high level of investment to become threat for the global brand. In Myanmar
threats from new entrance could be low because company invest in fashion and sports industry
and it could be difficult for the new business to make an impact on the minds of customers.
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Thus, threats from the new entrance is low in the context of JD sports, because of high level
capital investment and brand image in the eye of people.
Bargaining power of suppliers: This refer to the pressure by the potential suppliers on
the particular business organisation(Cescon, Costantini, and Grassetti, 2019). Bargaining
power of suppliers may impact the level of competition in the particular industry. In the context
of JD sports, bargaining power of supplier could be high in Myanmar because of limited
suppliers available in the country. JD sports could face high level of threat from the bargaining
power to the suppliers, company has to make strategies accordingly to handle the level of
supplier power. However, suppliers may face huge loss by losing contract with well established
brand like JD sports. Thus company can use their brand image as an tool to influence suppliers
in Myanmar. It is also an opportunity for the suppliers to work with the well established
organisation.
Bargaining Power of buyers: This refer to the powers of buyer to put pressure over the
businesses to get high quality product and affordable prices. This force can directly influence the
profitability level of JD sports. In the context of Myanmar, the bargaining power buyers could
high for the JD sports, because company wants to establish its business in Myanmar and with
high prices company could able to attract more customers. However, the number of sellers in the
country is low as compare to the other countries, company can make huge impact on the
customers by providing them best quality of products with effective price strategies, so that
customers can retain with the company and become loyal customers.
Threats from substitute products: The availability of substitute products can increase
the level of challenges for the organisation and its business. High substitute threat show that
availability of products in the market can influence the buying decision making of the
customers. In the context of Myanmar JD sports could face high challenge make an impact on
the customer's mind set in order to make them loyal customers of the brand. Because of new
entrance in the Myanmar's market company can face challenge to become effective seller among
the pre existing substitute products in the market. Thus, company may face huge challenge from
the substitute products in the Myanmar's market.
Rivalry among the existing competitors: This show's number of competitor in the
market that have impact on the profitability of business. In the context of JD sports there are
various competitor in the market of Myanmar that may affect the business of JD sports. In order
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to deal with various competitors company can introduce effective quality of products with
discount offers could increase the level of customer base and growth in the market.
Thus, from the above analysis it can be understand that JD sports have both threats and
opportunity to start its business in Myanmar.
Economical Internal environmental analysis for identifying strengths and weaknesses.
Internal analysis of business refers to the analysis of competitive advantages of business
and various capabilities that helps business to grow in the market and increase the level of
profitability(Dzwigol, 2020). To understand internal strengths and weaknesses of the business
VRIO analysis could be useful for the JD sports. Below is detail analysis of VRIO in the
context of JD sports is explained:
VRIO analysis:
This is strategic tool that helps to analyse the internal capabilities and strength of
business, and various capabilities helps business to gain competitive advantages. VRIO analysis
reflect the performance of the company that help in better achievement of organisational goals
and objectives. In the context of JD sports VRIO analysis of company may help in better
achievement of goals and objectives and it also provide insight about the company's capabilities
and strengths that may increase the level of profitability in the business.
VRIO analysis of JD sports:
RESOURCES VALUABLE RARE IMITABLE ORGANISABL
E
COMPETITIV
E
ADVANTAGES
Brand
Identity
Market shares - - - Temporary
competitive
advantage
Financial
resources
Capital Capital - - Equality
competitive
advantage
Product and
services
Advancement Advancement Advancement - Sustainable
competitive
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advantage
Supply chain
management
Resources Resources Resources Resources Sustainable
competitive
advantage
Valuable resources: This resource are include in valuable resources when they
implement in the strategic direction of the company and improve the level of profitability in the
business(Gamble,Thompson and Peteraf, 2019). In the context of JD sports, brand identity of
the company may count in valuable resource, because company has strong brand image over the
multinational companies. Also brand image of the company to gain competitive advantages and
growth in the market. Financial resources of the company is also count in valuable resource,
because investment by the JD sports is high and it make quite difficult for the competitors to
increase level of financial resources as JD sports. Product and services and supply chain
management of the company is also count in valuable resources because it helps JD sports to
increase the level of profitability and growth in the market.
Rare resources: Resource that can only acquired by the few or one company are count
in rare resources. In the context of JD sports financial resources of the company is count in rare
resources, because the financial capital of the company is high and other competitors can not
easily match the level of capital of the company. Product and services of the company is also
count in rare resources, because firm offer high quality of product and services to its customers
that other competitors may not able to copy. Supply chain and distribution channels of the
company is also count in rare resources that increase the level of effective performance of the
company, and increase its profitability. Capital resources of the company found to be rare
because of the high investment of the JD sports on capital.
Imitable resources: This resource are costly to imitate by the other competitors, this
resources helps company to increase the level of profitability in the industry. In the context of
JD sports, product and services of the company is costly to imitate by the other competitors,
because company provide effective quality of product and services to the customers and also
have loyal customers base in the industry. Supply chain management and distribution channel of
the company is also costly to imitate by the other competitors.
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Organisable resources: This resource need to be organized in order to gain better
profitability and customers base in the market(Hunger, 2020). Supply chain management of the
company is one of the most organized resource of the company that helps in better arrangement
of the business and its growth in the market.
Thus form the above analysis is can be understand that company has various resources
that helps them in to gain competitive advantages and growth in the market. Also this resources
of the company increase the level of effective marketing in the market and ensure the growth of
the company. So company has various capabilities and strengths that helps in better growth and
increasing the level of profitability in the market.
Identification of Competitive Strategies.
Competitive strategies refer to the long term plan of direction that company devises
towards the achievement of organisational goals and objectives. Competitive strategies helps to
understand strengths and weakness of competitors and how it could impact the business of
respective company. To understand the competitive strategies of JD sports below is Bowman's
strategic clock is explained:
Bowman's strategic clock on JD sports:
This model helps in exploring the strategic options for strategic position of the company,
it explain how product should be position in the market to gain most competitive position and
advantages to the company(Kools, and George, 2020). In the context of JD sports, bowman
theory helps company in better management of goals and objectives and growth in the market.
Low price and low value added: In this position company face low competition, and
the product and services are also not differentiated and the customer perceives very little value,
despite low price(Teece, 2019). In this strategy the business can maximise their profit by
providing cheap rates as possible. In this context of JD sports, company face huge challenge in
this position because of high quality products and services provided by the customers. Thus, this
position is not suitable for the respective company. To position its products services in Myanmar
in this specific position. Because the customers of the company could expect cheapest value of
product and services in the market.
Low price: Business position themselves in this to be the lowest cost leader in the
market, this organizations produce large quantity of products and their product are valued in the
target market. Competitive firms has war of different prices of product and services in this
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position, the product are often sold on low rates by leading low price profits. In the context of
JD sports, company could use this strategic position to set its business in Myanmar, company
produce high range of product and services that can help them to start its business with low
prices and increase the level of profitability in the new market.
Hybrid: In this strategy aspect businesses are focused on product differentiate aspect
that helps their products to become highly valued in the market(Lak, Gheitasi, and Timothy,
2020). This helps businesses to attract more customers and make an impact on their mind. On
the other hand companies also focus on low price strategy in the market making their businesses
hybrid model. Customers are more attracted towards good quality of products at low price. In
the context of JD sports, company can use this strategy in Myanmar for better growth and
profitability in business, they can increase the level of customers base in destination country.
Differentiates: In this strategy company is focused on offering best quality of product
and services at average price. This assist company towards increasing loyal customers base and
retain them with the organization. In the context of JD sports, this strategy could be useful for
company in order to increase its market shares in Myanmar, company can attract more
customers by using this strategy in business.
Focused differentiates: This strategy is use full for the brands that are focused on
luxury and exclusive product that are high on quality and sold at high price(Pröllochs, and
Feuerriegel, 2020). In company target particular market segment for better profitability and
growth. In the context of JD sports company can use this strategy by applying it on particular
areas of Myanmar where customers are more focused on high quality and luxury product and
services,
Risky high margins: In this strategy company charge high prices for the product and
services that perceived and valued by the customers(Schilling, and Shankar,2019). This could
be an risky strategy for the business because of the probability of failure in the for long term.
The customer could look for the better quality of products and services on same price. In the
context of JD sports, this strategy could be risky for the company to use in Myanmar.
Monopoly price: In this position company position its business as monopoly leader in
the in the market. As they are the only one that offer specific kind of product and services in the
market. There are no fear of competition in this position of market. In the context of JD sports
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company can focus on providing monopoly prices to their customers in order to increase
customer base in Myanmar.
Loss of market shares: This position of the company is desirable by any business
organisation. This position occur when company is not able to offer products and services that
customer value. In the context of JD sports this position is not suitable for the company.
Ansoff model:
Ansoff matrix is also called the market expansion tool, this tool is used by the firm or
company to analyse and plan the marketing strategies for the growth of the firm. This matrix is
having four strategies that can be used to help a firm to grow and also analyse the risk related to
the company, although in the context of JD sports ans-off model analysis.
Market penetration; Market penetration is the strategy to enter into the new market,
and also with the help of market penetration a product will be recognized by the customers.
This also focuses on increasing sales of the existing products to an existing market. Now in the
context of JD sports the market penetration is as follows, as everyone knows JD has been widely
recognised for a very long time for fashion apparel and footwear in the UK. JD retail continue
focus on establishing the connection with customers by continual investment in the physical
store portfolio also established the digital platform and doing creative marketing . The
penetration of online sales is equal to the total sales in a business also varies and depending on a
number of factors including customer demographics, geographical reach, technological reach
and capacities of the websites.
Market development ; JD sport's business strength is the branded sports for fashion and
outdoor and retail. JD sports update its brand line regularly. In the sport and casual wear sector
changing fashions will also affect the life cycle of a product. JD always focus to buy branded
products as Nike and Adidas, This will promote the business and build the sales. As sales grow
and new existing customers buy the products.
Product development; The process of introducing the new product to the existing
customer is called product development. This is based on the relationship between clients and
producer, company always supply the latest products to new customers. JD sports has acquired
the name of reputed brands like black leisure, chau sports and also some brands. Because this
plays a important role in the product development. This also helps the company to defeat its
competitors in the market.
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Diversification; This stage is related with the expansion of business through the
production of the new products and services in a newly established market. The diversification
strategy is the best strategy to apply on the time of market saturation. JD sports have introduced
skull candy and always keep focused on to grab the customers attention, if the customer like to
listen to music while playing sports. JD sports is one of the reputed brand in U.K, The company
has increased their sales growth through diversification strategy. Company promotes new
product of daily life through magazines and leaflets, therefore diversification has played a very
important role in the growth of the company.
Strategic directions and methods of expansions:
Strategic direction refer to the plan that business use in order to implement it for the
organisation and achievement of goals and objectives of the company. In the context of JD
sports company can focus on providing products and services and expansion of business in new
market. Strategic direction strategies could helps the company to implement and appropriate
plan that helps in better growth and profitability(Schilling, and Shankar, 2019). Organisation
can focus better advertising strategies in Myanmar to provide information about the product and
services to the target market segment. This could help them in better growth and achievement of
objectives in new market. Company can hire talented and skilled employees that can provide
effective productivity to the organisation that can help the company to attract customers towards
the brand. To increase the level of customer base company should focus on the areas of market
where people are focused on sportswear and fashion wears so that they can connect with the
organisation. Thus, this strategic direction could help the company in better achievement goals
and objectives.
Recommendation
From the above analysis it can be recommended to the JD sports that in order to start
business in Myanmar company needs to make effective marketing strategies that could help the
to expand its market in the country. Also there are more efforts are required as compare to other
countries because of political and economical situation of Myanmar. JD sports needs to focus
on specific market base where it is easy for the company to target customers and attract them
towards the brand.
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CONCLUSION
From the above information it can be conclude that strategic marketing include all the
internal and external analysis of business. There are various external factors of business that
have influence on the its growth and profitability. Also there are various challenges in the
market environment of the country that could impact its growth in particular country. VRIO
analysis of the company helps to understand about that various factors that assist business
towards more competitive advantages. Bowman strategic clock helps to understand about the
better position in the market of the company. Strategic direction helps company in order to make
better growth and profitability in the market.
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REFERENCES
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