MS6LB52O - Strategic Management Report on JD Sports' Strategies

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This strategic management report provides a comprehensive analysis of JD Sports, a leading UK fashion and sports retailer, using various strategic frameworks. The report begins with an external analysis employing PESTLE and Porter's Five Forces to identify opportunities and threats within the industry. It then delves into an internal analysis using the VRIO framework to assess the company's strengths and weaknesses. The report further explores strategic options by applying Porter's Generic Strategies, examining potential competence strategies and strategic directions for JD Sports. Different methods of expansion, such as mergers and acquisitions, are also considered. The analysis aims to provide a critical evaluation of JD Sports' competence strategies and offer potential considerations for their future strategic development. This document is a student contribution and is available on Desklib, a platform that provides AI-based study tools and resources for students.
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Individual Strategic Management
Report
(JD Sport)
Strategic Management – (MS6LB52O)
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Table of Contents
EXECUTIVE SUMMARY........................................................................................................3
TASK 1......................................................................................................................................4
External Analysis.......................................................................................................................4
PESTLE Analysis..................................................................................................................4
Porter’s five forces analysis...................................................................................................6
TASK 2......................................................................................................................................7
Internal Analysis.........................................................................................................................7
VRIO Analysis......................................................................................................................7
TASK 3......................................................................................................................................9
Strategic options for the identification of competence strategies...............................................9
Porter's Generic Strategies.....................................................................................................9
TASK 4....................................................................................................................................11
Strategic directions...................................................................................................................11
Methods of expansion..........................................................................................................11
CONCLUSION .......................................................................................................................13
RECOMMENDATION...........................................................................................................14
REFERENCES.........................................................................................................................15
Books and journals..............................................................................................................15
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EXECUTIVE SUMMARY
Strategically management gives total direction by growing all the planning and policies
created to accomplish all the results and then locate all the sources to utilize the planning.
Pestle analysis on the industry will help the firm to set up the exterior factors that will assist
all the decisions that are created within an administration. This will also execute the internal
analysis with the utilisation of VRIO framework and porter's generic strategy by selecting a
right strategic choice to determine each strategic form. These reports include an analysis and
evaluation of the selected firm competence strategies in a critical and in an informative
manner. It also assesses good options and creates a potential consideration of their upcoming
competence strategies by using various types of strategies. It will also communicate that a
company can use different strategies of expansion like mergers, expansions and many more.
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INTRODUCTION
Strategic management is affiliated to the finding and describing all the strategy that all the
directors can communicate to accomplish an improved demonstration and a competence
benefit for the company. It is the procedure of locating all the objectives, process for the
creation of the management more competitors. JD sports PLC has been taken as a basal firm
which is formed by John Wardle and David Makin. It is a leading UK skilful supplier of
fashion brand, athletic contest and everyday wearable in an informal way constituted in 1983.
This brand is an important provider and follower of various football teams, players and
associations. This file covers extraneous investigation to determine several opportunities and
threat by PESTEL and Porters five forces, interior investigation to determine strengths and
weaknesses by the utilization of VRIO (Uwizeye, 2019). This will also cover competitive
strategies by Porters generic strategies, strategic directions and several ways of expansion.
TASK 1
External Analysis
PESTLE Analysis
This analysis defines the information about few structural situations which Real estate market
of JD sports fashion PLC will face that affects the decisions made inside an administration.
Political:
This factor is related to the way government interact in the economic conditions. Regulations
of the government may increase the tax ratings for any of the business and can lessen the
similar thing for others because of some common reasons. In case of Real estate market of JD
sports fashion PLC, the state of this company at the worldwide level increases the cognitive
state of the management due to the various changes in the governmental environment of
assorted places. Daily changes in the policies of authorities may damage the functional
situation of the selected firm by increasing the uncertainness in an enterprise.
Economical:
This factor is based on the measurement of an economic environment factors by knowing
various factors economically which are external such as exchange rate, wages and many more
(Nilsson, Petri and Westelius, 2020). In context to Real estate market of JD sports fashion
PLC, improvement in the economical scheme offers a vast part of opportunities in the
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evolution and betterment. The international description of the strategies of the selected
administration which is affected by the finance marketplace effectively as the activities in an
efficient financial securities industry that leads to the increment in improving the capability to
acquire into in the new sales outlet.
Social:
This factor is related to the elements like family, religion and many more which impacts and
describes the living standards. This will help the firm to better strategies their market
statistics and schemes. In case of Real estate market of JD sports fashion PLC, by knowing
the sociology features like span, movement and many more will help the selected firm in
selecting the right portion of marketplace with modern increasing capability inside the
marketplace (Zollo, Minoja and Coda, 2018). The approaching of the online platform and an
e-commerce system has inspired online buying attitude among the consumers.
Technological:
This factor is totally related to the critical macro-economic impact on the functioning of a
business. With the use of this factor, some firms can modify their technology to enhance the
commodities and procedures which can be very good to spread out the market with its profit.
In relation to Real estate market of JD sports, the current utilisation of online platform like
social media is very specific in the market and specifically for the business organization
environment of the chosen firm. The selected firm can also purchase the possibilities offered
by the social media market to modify the work of the industry.
Legal:
These are the factors who decide whether or not there is a firm behind marketing a particular
commodity and also impact the performance by which a firm commodity, their inventory
interconnects with the consumers. In case of Real estate market of JD sports fashion PLC,
this will allow the chosen firm to come after various regulations of wellbeing and safety to
support about the security of every worker completing their task in a the designated
administration. It also needs to realise the content safety rules to save the data of all the
customers.
Environmental:
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This factor is related to the elements through which he directors are alert for the connection
between the firm and its surroundings (El-Aidie, Alseiari and Khalifa, 2021). This will assist
the firm, to recognise danger and possibilities that will impact the supply chain or increment
in the pricing of raw materials. In context to Real estate market of JD sports fashion PLC, to
select the effective type of waste material system in the chosen firm that are situated nearby
urban areas is very important.
Porter’s five forces analysis
This model is an efficient instrument to examine many essential competitive forces at work in
any system. This will help the attractiveness of a company and region where an individual
can apply the scheme to improve the net profit in the administration.
Bargaining Power of the buyers:
This is a type of force which gives an external analysis of an organisation and permits the
firm to be attainable in the industry (Said, 2018). Bargaining power of buyer is high due to
the presence of different sellers in the market. In case of Real estate market of JD sports
fashion PLC, it should think out the issues by getting large consumers from different parts by
improving the cause of commodities so that buyers of the chosen administration have more
selection to buy the product.
Bargaining Power of suppliers:
This force focuses on the forming of competency of a company and help to identify the
attractiveness of a firm. This will lead to affecting the contest environment for the buyer and
impacts their ability to achieve a net income. In case of Real estate market of JD sports
fashion PLC, it directs the bargaining power of the suppliers by modifying their data of
suppliers, getting good rights from suppliers to afford basic matters to them and investigating
about new commodities from various raw materials.
Threat of new entrants:
This force concentrates a broad part that creates the organisation little in a very inferior force.
So contestants in the marketplace are capable to get into in a very easy manner in the firm,
competency with the earlier existing of companies. In relation to Real estate market of JD
sports fashion PLC, this threat is administrable by continual increment in their state and to
initiate new commodities. The chosen firm also use economic system in which fresh written
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record do not enjoy. Real estate market of JD sports fashion PLC has finances to take in on
investigation for brand new commodities installation and altering their quality.
Threat of substitute products:
In this Porter's force, less threat products makes the firm more fascinating. This will lead to
the increment of profit for the firm. In a similar manner, advanced threat creates the firm little
fascinating which leads to the lowering of profitability in a company (Amelung, Himmler and
Stein, 2017). In case of Real estate market of JD sports fashion PLC; this will reduce this
threat by masking a work more crucial than a commodity, by laying down them in that
manner that all consumers may have to give more if they are picking out an alternative
commodity.
Rivalry among existing competitors:
This force will affect the competence environment and affecting the ability of existing firm to
achieve a better production and profit. It will be at advance level because of the firm's
accumulated economic process and to provide those products to meet all the requirements. In
context to Real estate market of JD sports fashion PLC, it can reduce this by using economic
strategy of measure, brand engagement and good consumer relation management.
TASK 2
Internal Analysis
VRIO Analysis
This analysis is especially assistive in growing the new enterprise scheme by helping
systematized investigation and categorization of all present touchable and unidentifiable
sources and the ability along the firm's value chain in context to their worth of creating
lengthy time competence benefits.
Valuable:
Resources are also valuable if they assist a firm to modify the detected value of consumer.
This is done by improving the distinction and damaging the cost of the commodity. The
resources that cannot run into this situation, results to the competence disadvantage
(Benischke, Martin and Glaser, 2019). In relation to Real estate market of JD sports fashion
PLC, it is very essential to proceed the investigating the value of the sources because of the
continuous changes in the internal or extrinsic situations that can create them short-level
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numeric or not in earnings at all. This firms represents that the financial resources are more
valued as these aid in investment in the extraneous expectations that is increasing. These also
assist JD Sports Fashion in demanding the outer risk. According to the VRIO Analysis of the
selected firm, its localized nutrient commodities are precious source as these are extremely
distinguished. This makes the detected value for these by consumers of Real estate market of
JD sports fashion PLC, at an advanced level. These are also valued more than the competence
by consumers because of the distinction in these commodities.
Rare:
Resources that can only be obtained by an individualist or little firms are referred as very
rare. Rare and valued sources assist temporary-lived competence benefits. While the
condition when more than less administration have similar resources or utilising the cap
ableness in the same manner, results to the competence perspective. This is due to the firm
that can utilise same resources to use incidental schemes and no firms can accomplish a better
work in the field. In context to Real estate market of JD sports fashion PLC, localized food
commodities are found to be not rare better-known as it is very extraordinary according to the
research. These are undoubtedly given in the market by different competence in the
marketplace (Rosenbaum-Elliott, 2021). This is related to those individuals who are in
competency can utilise these resources in the similar manner as Real estate market of JD
sports fashion PLC can control competency benefits. This means to that localized eatable
commodities leads to the contest equivalence for this firm. As, this resource is quantitative
and also rare, this firm can now also make usage of this assets. The workers of the chosen
administration are very rare as noted by this research which is functional on the selected firm.
These workers working in this organisation are extremely contained and better, which is not
the example with workers in other companies. The benefit and workspace will make sure that
these workers do not leave for different companies.
Imitability:
A resource is very expensive to writing if another firm that do not have this will not imitate,
purchase or regenerate it at a sensible cost. Imitating can happen in two manners: by
immediately repeating the resources or giving the classifiable commodities. In case of Real
estate market of JD sports fashion PLC, the commercial enterprise sources which is
commercial for this company and are very expensive to the written record as recognised by
this chosen firm with the utilization of this investigation. These sources have been accepted
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by the firm by extended production over the time period. New written evidence and
competency will need same net income for a long duration to select these amounts of money
for finance resources. The localized food commodities are not that expensive to writing as
accepted by this investigation of Real estate market of JD sports fashion PLC, these can be
obtained by competence as well if they give good amount in problem solving and growth (Ali
and Anwar, 2021). These also do not need lengthy time period and happening. At the end,
food commodities by JD Sports Plc provide it with a temporary competence benefit that an
individual can also go in the long time.
Organized:
The resources alone do not investigate any benefit for a firm if it is not arranged to pick out
the medium of exchange from them. In relation to Real estate market of JD sports fashion
PLC, these sources are utilized in a strategical manner to use up at a correct place to create a
good usage of chances and contradictory hazards. So, these resources changing out to be a
source of continuous competence benefit for JD Sports (Teece, 2017). The evident of JD
Fashion are not configured in a good manner as recognised by the chosen administration who
has done this investigation. This means to the selected firm who is not using these legitimate
rights to their overall capability. A new competitive benefit manages out that can be varied
into a continuous competence benefit if JD Sports starts marketing commodities which have
evident before it is moving out of date in the market.
TASK 3
Strategic options for the identification of competence strategies
Porter's Generic Strategies
Porter's generic model is described as a selling tool which is practical for the companies to
come with their enterprise dealings which could assist them in achieving growth, net income
and creates a sustainable competency advantage for them. It is a very helpful tool which is
required to study the achievable place in which the companies could face competitive
advantage in the same company over others. Porter's generic model of the chosen firm has
been done below.
Differentiation:
This factor is incidental to the competency strategy which simplify the company by providing
different choices to make products and services which are different from their competitors
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company in the similar administration. In relation to Real estate market of JD sports fashion
PLC, company can utilise this scheme by creating very fascinating advertisement, various
kinds of products with their choice, exclusive services or to start new practical application in
the market to accomplish improvement and occurrence. Those companies who are utilising
this scheme is interdependent on the loyalty of customers about their variety of commodities
and services (Krzakiewicz and Cyfert, 2017). This will assist the organisation in reducing
their competency if customers measure and stay honest for the brand.
Cost Leadership
This factor is a type of competency scheme which helps the company in making products at
low cost and looking for wide reaching demonstration. This strategy also assists the company
in the breakage of price for the players of Real estate market of JD sports fashion PLC, take
part in the competency by various ways such as entrance of the price and yet could offer
better quality of products to their real customers with the gain in a reasonable price. The
primary reason for the executing of this scheme by management is to come through the same
price as their competency when reducing the cost in context to run an enterprise.
Focus
This is the other factor that are comprised in this framework which defines that companies
can select between cost leadership and differentiation. In a simplex manner, it means to the
companies who want to identify their potentiality marketplace and develop products or
services according to their choice and make worth along with loyalty of customers. By using
this scheme, a Real estate market of JD sports fashion PLC, can get a customer base that act
legally and can impart to net income and improvement of the selected organisation.
Cost Focus
This strategy means to the company that utilise competence in market on the base of price to
select limited marketplace assemblage (Debellis and Pinelli, 2020). This does not mean that
management is utilising this scheme to Real estate market of JD sports fashion PLC, who are
offering the products at a very expensive price or else they are offering less cost in opposition
to their competency in the marketplace.
Differentiation Focus
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This is the second strategy that happens at a lower place and focus on the factor which assists
the company in providing a particular and different products or services in Real estate market
of JD sports fashion PLC, that could execute the region or requirement of customer.
According to this strategy, schemes which the companies are offering products with the
specific feature that creates a big customer base.
In context to the Real estate market of JD sports fashion PLC,, it could utilise
differentiation focus scheme which could help it in collecting the needs of customers and
accomplishing competency advantages in the market over others. This could also assist an
enterprise in providing the products with the particular property which could make a big
customer base (Campbell and Park, 2017). This will also assist it to increase its production
and profitability in the marketplace.
TASK 4
Strategic directions
Strategic direction is concerned with the strategy that need to be applicable for the firm to
grow with respect to its creativeness and accomplishing its objectives.
Market:
Real estate market of JD sports fashion PLC is a company located in a United Kingdom
which is related to the sport, kind and a multi-channel merchandiser to link with worldwide
branding. Industry of this firm see a combined and a united manner with the other brand
which is a crucial part to make its commodity part according to the continuous prospect at the
growth and make it with the help of the idea to make sure that it will stay on an individual
basis and with the tendency.
Product:
This Real estate market of JD sports fashion PLC, company of sports and fashion brands
comprise its different products in the marketplace like DTLR Villa, Livestock, Sprinter,
Sports Zone, Chausport, Sizeer. Its outdoor brands involves Go Fishing and Naylors, Jordan,
Adidas,Vans, Puma, Champion, Timberland, Sonneti and many more.
Services:
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Real estate market of JD sports fashion PLC, offer different services to its users in the market
which is very important for all the companies to place in the market for making its production
and profit in the industry. It offers consumer services to direct consumer connection, giving
right answers and selection in the time period, following to make sure about the authorities
(Basias and Pollalis, 2018). To keep all the data of consumer activities, procedure of client
reports and record in writing data.
Methods of expansion
Mergers:
This is based to the combination of two companies into one new administration. In context to
Real estate market of JD sports fashion PLC, there is a combination of JD sports and Foot
asylum in which CMA will manage the marketing of this Foot asylum which is entirely
affiliated and allow the new purchaser to make sure that it will run as a actual competence.
Acquisitions:
This refers to a company that purchase a lot or every of other company's part to accomplish a
control of that administration. In case of Real estate market of JD sports fashion PLC, when
utilised in context to an enterprise, refers to the purchasing of various or all company's part to
investing the obtained chosen industry's ability and defect.
Alliances:
A business alliance is a study of among companies, particularly motivated by cost decrease
and growth service for the customer. In context to Real estate market of JD sports fashion
PLC, these are business relationships in which they are close to who they know in companies,
and like a personal connection, they modify the capabilities and defect with abilities.
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CONCLUSION
It is concluded from the above report is that strategical direction is a regular procedure which
is very important for the victory of the enterprise. Business administrations are awaited to
make the security that they are busy in strategical direction due to the success of a firm and
standardized of living is interdependent on this kind of management.
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RECOMMENDATION
It is recommended from the above report is that PESTLE analysis and porters five forces
model is the best mode to determine the surroundings of the firm that is micro and macro
both. As PESTLE analysis is a normal and simple way that assists a firm to allow as a
business organization individual to increase a study of the broad market in which they are in
enterprise state. Broadening the purpose to apprehend external factors increase strategical
thoughts which results to the better strategies. Porters five forces model is an important tool
for studying the competence ability at action in a company. This can assist to measure the
attraction of a organization, and a place where they can set their plan of action to increase the
profitability. It is a very important tool that it assists the firm to study the competitors force in
their company and act in strategical manner that is related for the particular of their
infrastructure of company and the relative force of providers and purchasers.
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REFERENCES
Books and journals
Uwizeye, O., 2019. Influence of Strategic Management Drivers on The Growth of Coffee
Export Processing Firms in Rwanda (Doctoral dissertation, JKUAT-COHRED).
Nilsson, F., Petri, C.J. and Westelius, A., 2020. Strategic management control in theory and
practice. In Strategic Management Control (pp. 1-7). Springer, Cham.
Zollo, M., Minoja, M. and Coda, V., 2018. Toward an integrated theory of strategy. Strategic
Management Journal, 39(6), pp.1753-1778.
El-Aidie, S., Alseiari, H.A.S.M. and Khalifa, G.S., 2021. Tourism Sustainability and
Competitiveness: A strategic platform. City University eJournal of Academic
Research (CUeJAR), 3(2), pp.1-19.
Said, H.T., 2018. Innovation as an element of strategic management accounting. Учет.
Анализ. Аудит, 5(3).
Amelung, V., Himmler, S. and Stein, V., 2017. Strategic Management and Integrated Care in
a Competitive Environment. In Handbook Integrated Care (pp. 133-147). Springer,
Cham.
Benischke, M.H., Martin, G.P. and Glaser, L., 2019. CEO equity risk bearing and strategic
risk taking: The moderating effect of CEO personality. Strategic Management
Journal, 40(1), pp.153-177.
Rosenbaum-Elliott, R., 2021. Strategic advertising management. Oxford University Press.
Krzakiewicz, K. and Cyfert, S., 2017. Dynamic capabilities in strategic choice processes
within organisations. Management, 21(1), pp.7-19.
Debellis, F. and Pinelli, M., 2020. Board interlocks in SMEs and the formation of
international joint ventures. Piccola Impresa/Small Business, (2).
Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business &
technology: Justifying a suitable research methodology. Review of Integrative
Business and Economics Research, 7, pp.91-105.
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Campbell, J.M. and Park, J., 2017. Extending the resource-based view: Effects of strategic
orientation toward community on small business performance. Journal of Retailing
and Consumer Services, 34, pp.302-308.
Teece, D.J., 2017. Towards a capability theory of (innovating) firms: implications for
management and policy. Cambridge Journal of Economics, 41(3), pp.693-720.
Ali, B.J. and Anwar, G., 2021. The balanced scorecard's evolution as a strategic mechanism
at banking sectors. Ali, BJ, & Anwar, G.(2021). The Balanced Scorecard’S
Evolution as a Strategic Mechanism at Banking Sectors. International Journal of
English Literature and Social Sciences, 6(1), pp.471-478.
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