Strategic Report: JD Sports PLC, Market Analysis & Bowman's Clock

This report provides a strategic analysis of JD Sports PLC, a UK-based clothing retail company, focusing on the application of strategic management principles for business growth. The analysis includes an examination of the macro environment using PESTLE (Political, Economic, Social, Technological, Environmental, and Legal) factors and Porter's Five Forces to assess the competitive landscape. The report also incorporates a value chain analysis to identify areas for competitive advantage and cost optimization. Furthermore, it elaborates on Bowman's Clock, a strategic positioning tool, and its relevance to JD Sports PLC's strategic directions. The overall aim is to provide insights into how JD Sports PLC can leverage strategic management tools and frameworks to enhance its competitive position and achieve sustainable growth in the dynamic retail market. Desklib provides access to similar past papers and solved assignments for students.

STRATEGY MANAGEMENT

TABLE OF CONTENTS
1.0 INTRODUCTION.....................................................................................................................3
MAIN BODY...................................................................................................................................3
Executive Summary.........................................................................................................................3
2.0 External analysis....................................................................................................................3
3.0 Value chain analysis..............................................................................................................6
4.0 Elaborating the concept of Bowman’s Clock and it's Strategies...........................................8
5.0 Strategic directions...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

1.0 INTRODUCTION
Strategic management is all above refers to activities where organization management
develop analysing, planning, monitoring, implementing, assessing work to individual for
achievement of business target. Survives in the competitive market application of this
management is essential term (Bui and et.al., 2021). JD Sports PLC is cloth retail industry in
UK. They have variety of effective and fashionable casual and sports wear products. They
consider growing their business with application of strategic management because external and
internal factors highly influence their business activities. This organization activities mainly
faces challenges and issues from multiple cloths retailers industries and their employee
performance. Survives in the competitive market they consider engaging strategic management
plan which is useful for effectiveness development in business. This study will provide
information about how organization can develop strategic plan with analysis of micro and macro
environment activities, application of value chain management which improves quality of
business, application of models and theories of competitive strategies, market analysis approach
and many more.
MAIN BODY
Executive Summary
The report is based on JD sports, and determining PESTEL approaches that helps in
emphasizing political, economical, social, technological, environmental and legal factors. Also,
study is take place of value chain management and Bowman's Clock strategic is facilitated in
regard to organization. Their market, product and services are determined that plays significant
role and performs organization function in desired manner to expands their business by
implementing strategy into respective form.
2.0 External analysis
Pestle analysis
JD sports fashion plc pestle analysis is a framework that determine the macro environment of the
company which has direct impact on the organization of the company (JD group, 2019).
Political factor :- in the company political factor plays and important role that impact the
company in long run in a specific country or the market they have. Company has more than
thousands of the retail stores all over the globe. Every country has different type of market and
policies for the businesses. Political stability in the JD sports fashion plc is important, but there is

risk factor in this is military invasion and the increasing corruption in different- different country
via different factors. Anti laws and customer services affect the company that is basically a
political factor for the business (Phan, 2021).
Economic factor:- in macro environment the inflation rate and GDP of the economy factor of
the country because of the business also affect the organization demand and supply of the
country. In different countries they have different type of the economy. Company have to
manage according to that. Like, skillful and knowledgeable retailer for the industry and company
quality of the infrastructure they have. Education level of the country also affect the business
economy factor.
Social factor:- society perspective and their culture of living affect the business as the JD sports
fashion plc is all over the globe they have to understand the culture of every country where they
situated to better understand the social factor of that particular country where company situated
and going to place. This factor affects the gender roles and demographics factors also the power
of structure in the society of business.
Technological factor:- as the technology changes rapidly company should also improve their
quality and skills according to it. In the past five-year company also changes fast because of the
technology advancement. Technology related to the product advancement and have impact on
the structure of the company retail; industry.
Environmental factor:- in different sector and countries companies having different type of
environment in every area where company situated. If company maintain their standard
therefore, the environment of the company bring the profit. Company affect by the
environmental things like, recent COVID-19 and weather changes transportation of the country
and the law and regulations, pollution percentage, consumer behavior towards the product and
the company (Perera, 2017).
Legal factor:- there are so many countries where the law and the legal terms are not that strong
to protect the business and their rights. That's why many company lack in some area to promote
their product and make awareness about their brand. The legal factor include the discrimination
law and health and safety measure for the company and also for their consumers. This also
include the copyright of the company and employment law different country has their different
law of the employment and other things that consist the business.
Porter's five force model

Porter's five force model of the JD sports fashion plc represents a competitive environment of
the company.
Threat to new entrants:- new entrants always bring innovation in the market that is big threat
for a firm because this brings the company to put their prices low because of the competition in
the market. Company can tackle their new competition by innovation in their products in a
certain time that's how they will compete with their competitors. Company also bring the
economies of scale so that they can lower their fixed cost (Bruijl, 2018).
Bargaining power of the suppliers:- every retail company purchase their raw resources from
various suppliers. Supplier increasing bargaining power impact on the profit margins of the
product's company have. Company improve this by improving the supply chain of the company
and develop a dedicated supplier for the company who give resources to the company at a
reasonable price.
Bargaining power of the buyers:- nowadays the buyers are so demanding, and they always
expect something new from the company and expect the best offer by the company in a low
price. For this company can tackle this situation by building their large customer base with that
they do not have to sell their product on a low price and produce a new innovative product for
the better experience of the consumer.
Threat of the substitute goods:- in market nowadays there's a lot of substitute products
available as the company have with that consumer have option to divert towards others to tackle
this company can maintain their quality of the product because the threat of the substitute goods

in a market is high that's why company can bring the better quality and give better service to
their customers and understanding the culture of the society for improvement in their product.
Rivalry among existing competitor:- in the porter's five force model the rivalry of the firm is
also played a major part in the industry because the main competition for the firm is already
existing firms that is going to compete the company in every aspect that's why JD sports fashion
plc has a competitive environment, and they can handle this by producing the sustainable
products for the customers and build a scale for the better experience of the company. Company
also increase their market size by merge with another company or by acquire the company
(Nyanga, Pansiri, and Chatibura, 2019).
Conclusion of the pestle analysis and the porter's five force model in the company
JD sports fashion plc bring a great competition in the market and have a major impact on their
competition. By innovate the new products and improvement in the existing products and also by
enter into a new market of different area in a different country. The company management team
can help them to analyses the macro and the micro factor and give a shape to the company in
their favors for the betterment of the company. By pestle company analyses their external factors
where they are going to set up their business or how will they improve their business on the
existing p;ace they have been.
3.0 Value chain analysis
It is defined as procedure in order to which study organization business practices that is to be
performed in order to determine competitive benefits (Knez, Jaklič and Stare, 2021). In regard to
organization, helps in facilitating organization value by their terms of primary and secondary
activities that performed in function of organization. This helps organization to understand value
of their in accordance to chain management by working in respective manner. It is consists of
two parts that are explained below;
Primary Activity
Inbound logistics- In regard to organization, this determines that products being produced from
business of JD sports suppliers and used obtaining end goods. To maintain logistics function in
prospective manner and achieves organization objective and aims in respective manner by
inbound of operation of logistic goods and services (Havlíček and et.al, 2021). It helps in
determining logistic of organization by products by obtaining in desired manner that emphasize
smooth functioning in organization.

Operations- In responds to JD sports, this facilitates that practices and procedure works in
desired manner for converting inputs into output. In series of these goods or service being trade
by organization that flows out to consumer in order to conduct production in effective manner.
Through conducting operation function this activity helps in attaining profitability for
organization to achieve desired goals of organization in effective manner.
Outbound logistics- In terms of organization, it emphasizes about internal and external structure
for managing into corrective measures (Indrasari and Komari, 2021). By ascertaining delivering
of outputs to consumers in order to follow procedure of storing, gathering and distribution to
consumer that satisfied their needs and want in accordance to their requirements. It helps in
facilitating organization system that works in respective manner to delivery of their products and
services in productive manner. In order to increase their production and sustainability growth of
organization in perspective way.
Marketing and sales- In accordance to increase organization brands in various sector and
attracts more and more customer (Nega and Mamo, 2021). Organization performs this activity by
implementing marketing strategy into business to raise their earnings and achieves organizational
objectives. By promoting their products of sports by advertisement, on social media sites and
from other online sources in order to gather more customer and conduct their keen interest in
products and services that offered organization by marketing of goods. This helps in increasing
sales of company in desired manner by engaging more customers towards organization in order
to raise their performance and determines sustainable growth in market sector.
Service- In context to business, helps in emphasizing customer services by making better
relationship with them to increase their products and services in respective manner. Through
facilitating more customer towards organization by conducting and managing long term
relationship with consumers (Mensah and et.al, 2021). This activity helps in acquiring customers
in profitable manner by engaging them towards organization and attracting them towards
organization through their effective services that facilitate them in productive manner. The
services help in attaining organization productivity and efficiency in desired manner by gaining
profitability and raise performance of organization.
Secondary activities:
Application of this activity makes more effectiveness in organization management plan.
It mainly includes four activities are as follows,

 Procurement: Collecting resources, in this organization they have to identify and
selecting write product on the basis of customer requirement and which product highly
improve business activities.
 Technological development: Application of new technology in right time has to
generate effectiveness and build attraction of people and also it useful for sales
improvement so this company has to decide and select require technology for
improvement in customer attraction improvement (Asamoah and et.al., 2021).
 Human resource management: It includes selection process of employee and provide
them training and motivation. JD Sports PLC organization has to hire employee which
have idea bout fashion product and multiple essential thing which are business related.
 Infrastructure: Overall business activities and effectiveness totally depends on financial
aspects' availability. Cost management department has responsibility to management
financial terms, and they have to consider and applies strategy and provide information to
operation department, so they develop raw material and analyse which expenses they
have to reduce.
4.0 Elaborating the concept of Bowman’s Clock and it's Strategies.
Bowman's Strategy clock is an effortless way to utilize the strategy in market which
provide valued position and price. This concept was developed by the two renowned economists
Cliff Bowman and David Faulkner. It has been made to analyze the growth of market positions
as compared to rivalries community(Du, 2018). JD sports fashion PLC is a sports-fashion retail
based company at UK which practices the clock model of Bowman's strategy. This model
highlights the position of a company and its products and services which is based on two
particular sectors and divided over four quadrants.
First is about quality of product and their services whereas the second is price or cost of
the goods. These two factors causes various combinations with this clock model and leads to
eight fine strategies that company can obtain for their business objectives. In addition, it also
considers the advantages and disadvantage of the strategies. If the organization understand these
eight scheme they will modify to examine the current market ideas better and also improve its
competitive position in business society(Spillan and et.al, 2018 ). Following this theory, it attains
the possibility of sustainable growth and development in an organization which can create

valuable perspective in marketplace. Here, framing the eight strategies of Bowman's Clock
Model :
 Low cost and low added value : In this position, above mentioned company keeps the
price of the product low that only means they have to compete with rivalry company's in
market. However, it attracts the customer because of attractive costs which is enough to
encourage people to casually try them. Losing the prices makes the market powerful by
which competitors cannot undercut the establishment. Organizations are depends on bulk
sales to preserve their business.
 Low price : In this previous strategy, company put low cost which attracts people to
purchase without making the market at lower level. Thus, in this it generates the high
volume of products which leads to higher productivity and profit. Manufacturing the
goods in large quantities along with efficient and effective range rise this concept of
lower price model. In addition, by keeping the cheaper rates can improve the economy
scale and quick sales of an organization.
 Hybrid : This strategy is more effective and valued in this model on daily basis.
Customer loves to buy different and unique products according to their needs and low
cost budget. This model provides some products which other company or brand does not
offer. People get convinced by looking at differentiation of goods at lower prices. JD
sports attracts consumer by providing them great offers and best quality products with
some differentiation than other branded products.
 Differentiation : Making the items different and unique with reasonable costs for
consumers makes valued identity in the business society. Apart from the quality, JD put
efforts to making their consumers satisfied with their branding and makes loyal behavior
to customer which makes fit to fund the company more for the quality-products of
famous brand in market.
 Focus Differentiation : Consumers who focus on the lavish and exclusive items which
are best in quality and contains huge demand in market. Applying this strategy can make
high profit margins which leads to maintain high position in market. Giving the best
items makes people to pay more than three times of actual price in market(Bayani and
Dakila, 2017). Increasing the rates accordingly result in the extreme growth. It can be

done by promotions and marketing ideologies which target the consumer with their
advanced services and offers.
 Risky high margins : As this activity, it is the most risking locating strategy. It has been
argued that sooner or later it will demolish. This does not provide any service and offer
with high cost and can result into high income. Basically it is the short interval act to
effort temporary market. Some consumers prefer to buy till they get suitable fluctuation
or artificial product. Many business owner does not want to grab this strategy for higher
margin in the temporary market. Focusing on this act, JD fashion provides good-quality
in the related cost range with multiple types of products along with best services and
offers. This makes a company which can attract people and defeat the competitive
organization in same market.
 Monopoly Pricing : Monopoly refers to one business or company in market providing
the services and products. This concept has been determined that it drives the company to
profitable department. In this there is only two options either consumer want to buy or
they don't buy the product. In this context it can be clarified by JD sport company which
offers the monopolistic services(Kubilay and Dahlberg, 2020). It is totally relied on them
to target the prices at low or high as they are the only one who sell the products world-
wide. Many of the companies adjust the monopolist strategy for upgrading the profit and
production.
 Loss of Market Share : This includes the product with high cost but with lowest quality-
products. Surrounding the standard at high prices and receive the productivity by
following this strategy is might difficult for many of the business or company owners. It
can be impressive at short-term period in the trending industry. This is basically the worst
strategy to apply as this can generate the market at ample loss. This is mostly suggested
to new people to create a force in market with their prices.
Bowman's clock strategy is very advantageous which makes sense that how to compete in
the marketplace. By these stages it is easier and excellent way of understanding the thought of
marketing people to run their business. Above these strategies JK sports-fashion understands the
value of this model and accordingly takes steps to grow forward and achieve the position world-
wide. It concludes that applying these ideologies, JK sports-fashion PLC moves progressive to
form position in business market.

5.0 Strategic directions
In regard to organization, it offers varieties of market, product and services to their
customer in effective manner. By which plays significant role to achieve their desired goals and
objectives of organization by offering consumer better services and conduct effective approach
in marketplace, also provide good quality of products to customers (Haque, 2021). Through this
market, product and services helps in raising performance and achieves organization targets in
desired manner. The diversified products and services of organization helps in attracting more
customer and works in manner to attain goals and requirements of organization effectively. It is
determined below;
Market- The business of JD sports is diversified in various countries that facilitate their products
in different market sector of organization. Such as Australia, New Zealand and other area in
which they serve their products. It emphasizes huge varieties of market sector by which raise
their production and achieves organization objective in respective manner.
Products- In terms of organization, provide different types of products to their customer that are
fashion brand goods related to footwear or sports items (Shaulska and et.al, 2021). Also, Foot
patrol, finish line etc. offers products to customers by providing varieties of products.
Services- The company provides services to customer in order to conduct effective role to
facilitate and fulfil consumer needs and wants in respective manner to achieve organization
objectives. They provide consumer services to organization by facilitating in order to keep in
mind about customer.
Expansion strategies- In regard to organization, it implements different strategy in their
business to expands by corrective measure. Such as they make effective strategy to expands their
business on international level by advertising about their products and connect with other
countries customer through different sites for expansion of business. In way of towards this by
implementing this strategy increases their brand value and positioning in desired manner that
helps in boost performance of organization in effective manner (Sanderson and Özogul, 2021).
By emphasizing measure that conducts in better manner through expansion of business in desired
manner. The strategy helps business to boost their performance and increase productivity of
business by implementation of strategy in appropriate manner. Expansion plans are measured by
diversification, integration etc. through which expands business. In accordance to appear fast
growth of organization expansion strategy helps in increasing organization profitability. They

also implement strategy of making their products into innovative form by which expansion takes
place by innovation of their products and conduct in unique way to expands business in
productive way. By this strategy helps in gathering and collecting more customer for
organization through which raise their performance and earns profitability of organization by
attaining more customer for organization in desired manner.
CONCLUSION
It has been summarized form the above reflective study that organization has to develop
and engage strategic management plan because it useful; concept and improve quality of overall
business. This study provide idea about how organization can properly management multiple
task with proper identification and evolution of external forces because it affected business
activities like manufacturing, operation management, marketing plan, sales performance, profit
generate and many more. It has been helped to develop effectiveness in operation management
activity with Value chain management they properly develop distribution of work to employee
on the basis of evaluation and identification of their skills. Application of competitive models
makes strategy more powerful because it shown that clothing industry when develop new fashion
product with application of fashion stylist they highly improved their JD Sports PLC business
activities. Identification of overall study its has been very clear that individual organization when
they consider to build and raise their organization they have to implement strategic management
and essential theories and models.

REFERENCES
Books and Journals
Asamoah, D., and et.al., 2021. Inter-organizational systems use and supply chain performance:
Mediating role of supply chain management capabilities. International journal of
information management. 58. p.102195.
Bayani and Dakila, 2017. Repositioning in furtherance of future strategic direction: An analysis
of Cobra beer. European Journal of Contemporary Research. 6(1).
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Bui, T. D., and et.al., 2021. Sustainable supply chain management towards disruption and
organizational ambidexterity: A data driven analysis. Sustainable production and
consumption. 26. pp.373-410.
Du, 2018. The impact of multi-channel and multi-product strategies on firms' risk-return
performance. Decision Support Systems.109. pp.27-38.
Haque, M.G., 2021. Micro Financial Sharia Non-bank Strategic Analysis: a Study at BMT
Beringharjo, Yogyakarta. Budapest International Research and Critics Institute (BIRCI-
Journal): Humanities and Social Sciences. 4(2). pp.1677-1686.
Havlíček, J. and et.al, 2021. International aspects of the pork production value chain in the Czech
Republic. International Journal of Value Chain Management. 12(3). pp.241-266.
Indrasari, L.D. and Komari, A., 2021. Value Chain Analysis and Supply Chain of Layang
Fishing Prigi Fish Auction Trenggalek Regency, East Java Indonesia. Journal of
Research and Technology. 7(1). pp.17-26.
Knez, K., Jaklič, A. and Stare, M., 2021. An extended approach to value chain analysis. Journal
of Economic Structures. 10(1). pp.1-37.
Kubilay and Dahlberg, 2020. Exploring Market Creation by Entrepreneurs in Sweden: How
Value Innovation Fosters the Creation of New Markets.
Mensah, N.O. and et.al, 2021. Creating Sustainable Income through the Cashew Nuts Value
Chain (Evidence from Ghana). Journal of Nuts. 12(3). pp.253-271.
Nega, T. and Mamo, D., 2021. Honey Value Chain Analysis in East Guji Zone, Southern Oromia
Regional State, Ethiopia. International Journal of Agricultural Economics. 6(4). p.162.

Nyanga, C., Pansiri, J. and Chatibura, D., 2019. Enhancing competitiveness in the tourism
industry through the use of business intelligence: A literature review. Journal of
Tourism Futures.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Sanderson, D. and Özogul, S., 2021. Key investors and their strategies in the expansion of
European student housing investment. Journal of Property Research, pp.1-27.
Shaulska, L. and et.al, 2021. Strategic enterprise competitiveness management under global
challenges. Academy of Strategic Management Journal. 20(4). pp.1-7.
Spillan,et.al, 2018. Strategic capabilities, niche strategy orientation and performance: a four-
nation assessment. International Journal of Business Performance
Management.19(4).pp.427-449.
online
JD group, 2019. [Online]. Available Through; <https://www.jdplc.com/>.
Porter's Generic Model, 2021. Available Through;
<https://www.mindtools.com/pages/article/newSTR_82.htm>