Business Strategy Analysis: John Lewis's Competitive Landscape Report

This report provides a comprehensive business strategy analysis of John Lewis Ltd, a prominent UK-based department store chain. It begins with an introduction to business strategy, emphasizing long-term planning and resource allocation. The report then delves into a PESTEL analysis of the macro-environment, examining political, economic, social, technological, environmental, and legal factors impacting John Lewis. It proceeds with an internal analysis using SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. Finally, the report employs Porter's Five Forces model to assess the competitive landscape, including the threat of new entrants, bargaining power of suppliers and buyers, threat from substitute products, and rivalry among existing competitors. The report aims to evaluate John Lewis's business position, strategic planning and competitive dynamics within the retail sector.

Business Strategy

INTRODUCTION
Business strategy refers to set of goals and objectives and long term business planning
covers almost three to five years. It majorly concerned with resources issues such as raising
finance to construct a new factory or plant. Strategies concerned with deciding about products
for which resources should be allocated. This report is based on the John Lewis Ltd which is a
chain of high end department stores operate through out the United kingdom. It is one of the
largest employee owned business and started experiments in industrial democracy. This report is
based on the analysis of the macro environmental factor with internal environment factor to
evaluate their business position. It also includes porter's five force model to evaluate strength of
their competitors and various models, theories and concepts for strategic planning.
TASK 1
P1
Macro environment is an condition in which economy as an whole exists, rather than a
particular region. In macro environment includes Gross domestic production, inflation and
employment rate with monetary and fiscal benefits (Scholes, 2015. ). To analyse business
position organisation have to conduct various measures in which PESTEL analysis is one of
them:
Political factors:
Political factor impact enormously on the business of John lewis by bring new laws limit
on their business portfolio. There are some rules and regulations that impacts on their business
that are sales of goods act 1979 that states that goods should be satisfying standards that helps to
organisation to build products according to the prescribed standards. The another major law that
is data protection act 1998 which states about information which should be fairly and lawfully

collected and not protected from unauthorised use that harms their self interest. So majorly on
their business laws and regulations impacts on both negative and positive way (Bharadwaj and
et.al ., 2013..). To deal in right way organisation give proper training to their employees at time
of market their products into marketplace.
Economic factors:
John Lewis majorly deals in market of UK that majorly faces the concern of recession
and very much sensitive to changes in interest rates. Changes in economic conditions impact
largely on their business with harsh competition in retailing sector impacts on profitability of an
organisation by giving lot of incentives to consumers that affect on their price range.
Social factors:
In social factors consist of changing taste and preferences of consumers at rapid pace, in
case of John Lewis ltd due to massive boom in fashion attracts lot of people to shop products and
services from the store of branded items (Verbeke, 2013. ). They also focus on employ staff
members on their departments due to high demand of products and regular needs of clothes in
marketplace.
Technological factors:
Technological changes are massive for John lewis Ltd due to change in working system.
They initially develops internet which helps to interconnect computer systems by using standard
protocol suite to serve consumers in better way (Blackburn, Hart and Wainwright, 2013). With
the advent of technological advancement they able to sell products through online and by
message consumers with help of mobile and send through webs. For that they employ large team
of IT advance team members who serve their websites and networks to better serve their
consumer base.
Environmental factors:
Environmental factors that are new and fast growing awareness towards environment and
major issue towards cut emissions and adaptation of eco friendly products and services. John
Lewis Ltd majorly focus on carbon footprints to make activities very much environment friendly
and in condition of climate change. To adopt eco friendly products and services John lewis ltd
promote and responsible for sustainable method of agriculture, animal husbandry and bio
diversity to take away on suppliers. They use eco friendly energy saving washing machines,
kettles and showers but on other it enhance cost of operations.

Legal factors:
In legal factors consist of laws, regulations and customs which should be settled
according to the countries condition and their atmosphere. In case of UK national legislation
stiffen by health and safety in terms of consumer rights and manufacturing of renewable
resources to build clothes. There are some hazards while implementing these laws that human
resource faces many problems to coordinate with these laws simultaneously.
From the above mentioned analysis it has been summarised that all factors of macro environment
are very much crucial in taking important decision while expand business in other country or
expand their business by enlarge product portfolio (.Oestreicher-Singer and Zalmanson, 2013).
In that case all factors affect in both positive and negative manner on organisational works and
activities and accordingly organisation changes in their working behaviour or patterns to reach at
desirable goals and objectives in better way.
TASK 2
P2
Internal analysis of an industry consist of analyse organisational internal capabilities by
measuring their resources, core competencies and competitive advantage. Perform an task
organisation have to analyse their strength and weaknesses so that important attributes should be
collected in better way. To understand the internal analysis organisational SWOT analysis is one
of most important tool to encounter important information that are as follows:
Strength:
The key areas in context of John Lewis that are ad follows:
Strong online presence:
John Lewis present at global scale and has reputable position in all over the world
regarding quality of their products and services into marketplace (Woodard and et.al ., 2013.).
They also have great presence in context of finance and home care and very well recognized in
the UK market by strong customer relationship and partnering growth so that large market share
should be achieved. The main value consist with the organisation by their performance, growth
and innovation by strengthen their brand portfolio in marketplace. It diversified in various and
different product segments such as they are proficient by offering home furnishings to the
services beauticians.

High brand strength:
John Lewis has strong brand image in market by global presence and reputation in world
wide countries by over the many years. They have high customer relationship and partnering
growth to build an strong brand value in market. The overall new promoter for both the John
lewis store and Waitrose store for over the constant from many years to enhance best consumers.
Focus on innovation and creativity:
John Lewis always focus on keep themselves updated as according to the market needs
and wants in marketplace. They deal in various segments by develop products and services so
that they can give best products for every kind of people (Schrader, Freimann and Seuring,
2012.). They strongly focus on innovation in their product portfolio and engagement of
consumers and their strategies such as they emphasise on digitalization and multi channel sales
with distribution network to lead in marketplace. Organisation majorly focus on giving
digitalized shopping experience to consumer base by offer integrated platform. They provide
new features and attributes in which partnership card usage become most convenient in that
Quickcheck app that helps to scan barcodes with the helps of smartphone and bring product in
basket.
Weaknesses:
There are some weaknesses in front of John Lewis that hinders self interest of them that
are as follows:
one of the potential weaknesses before John Lewis Ltd that it faces due to the choice of cutting
cost in their departmental store and bring new that is “basics” line in waitrose chain of their
business. Consumers always become loyal for the John Lewis products and services because
consumers know the policy of “never knowingly undersold” that they always possess their
pricing higher than their major competitors but on other hand they provide products and services
qualitative. They introduce budget line that put consumer loyalty into test as John Lewis loose
one thing that sets out of the rest of market that is product differentiation.
Opportunities:
The main opportunity before John Lewis that they have vast opportunity to expand their
market share by creating new products and services in different nations with the help of strategic
acquisitions. John Lewis expand their market in various countries with the help of partnership
with food deliver partner with British corner shop to widen new territories (Ghezzi, 2013.). In

addition to organisation export from the china with the help of website platform and it aimed to
enter into Australia.
Threats:
The biggest threat before the John Lewis that comes within them that are structure of
organisation, they have partnership structure in which everyone is a shareholder. In that case
shareholders get together to fight with possible take over bid as it is enough for the shareholders
in giving their assent to sell their shares, then shareholders who are currently controlling
shareholder will lose their power and become less secure ( Ghauri, 2015.). Various exchange
rates also become an threat for them as prices vary when goods and services imported that
depends on when it brought.
TASK 3
P3
Competitors analysis is an analysis by comparing with competitors by evaluating strength
and weaknesses regarding competition and how organisation bring advantages by accessing
various factors. There are many factors that helps in evaluating significant impact on the
profitability of an organisation with these major attributes that are as follows:
Threat of new entrants:
New entrants in Personal and Household goods and services brings innovation and new
ways to accomplish things and bring pressure on the John Lewis by lower pricing strategy,
reduce cost and bring new value propositions for the consumers (Moseley III, 2017.). To handle
that threat John Lewis bring innovative products and services which not only attract new
consumers but also give reason to old consumers to buy products of John Lewis of Hungerford
Plc's products. With the help of economies of scale and spends lot of money on research and
development gives solution for threat of new entrants in market.
Bargaining power of suppliers:
John Lewis is an personal and Household organisation which purchase raw material and
other goods from many suppliers that helps in bringing final products and services into
marketplace. Dominance in marketplace of suppliers lower down margin of that organisation at
time of earn and sell their products and services. Powerful suppliers have power to negotiate by

extracting higher pricing while supply products and at last it impacts negatively on profitability
of John Lewis. To tackle from that concern organisation build an efficient supply chain from the
multiple suppliers so that they can not negotiate regarding price. They apply various kinds of
experiments by using different materials that protects from lower down pricing.
Bargaining power of buyers:
Buyers now a days demands a lot, for that organisation have to bring changes in their
products and services as per the requirement of consumers. They always want to buy products by
paying minimum price against product (Whitelock, 2012.). They have smaller but more
powerful workforce that possess high bargaining power and have the ability to seek high
discounts and offers. To lessen down their effects organisation aimed to build a large base that
helps in two ways by streamline sales and production process. They focus on innovating
products and services at rapid pace that also helps in defection of existing customers of John
Lewis to attract large no. of consumer base to direct towards grab large market share.
Threat from substitute products:
Threat of substitute products and services arise when consumers meets with similar
products and they can compensate with different ways, in that profitability of an industry suffers
from it. For an example they deals in various products and services and not deals in rare products
so in that case consumers have lot of option to purchase (Granados and Gupta, 2013.). So in
that case they face threat of substitute products and services that is high in range and if it offers
value proposition that provides attributes that different from the competitors products and from
industry. In that case John Lewis give service oriented rather than product oriented by
understanding needs and demands of consumer base with increasing switching cost for the
consumers so that they can lessen down effect of it.
Rivalry among existing players.
In that if the rivalry among existing players in an industry is fierce then it brings down
prices and decrease the profitability of an organisation. In case of John Lewis regarding
Hungerford plc that deals in competitive personal and household care products and services. So
overall competition level gives overall profitability of an organisation to grasp large market
share. In case of John Lewis they focus on differentiation of products and services by adding
some new features in their products and services to enlarge business opportunities. They build
products at large scale so that they can compete in competitive market place. Further John Lewis

collaborate with their fierce competitions to enhance their size of market rather than compete at
small market place. In that case John Lewis possess high market share and potentiality of market
to lead into marketplace. So it is one of best model to compete in marketplace and give major
attributes so that organisation can easily evaluate major aspects to bring changes in
organisational structure to bring sustainability in organisation (Noe and et.al ., 2017. ).
After analysing the competitors analysis they can easily gain complete scenario of aspects
that influence on their profitability of personal and Household goods industry. By understanding
major implications of that model an organisation can shape products according to consumer
favor.
TASK 4
P4
Strategic planning is an chain of activities that defines about organisational strategy,
direction and helps in taking decisions by allocating resources to accomplish strategy in better
way. It by using control mechanism guide strategies to implement it in a right manner (Bansal
and DesJardine, 2014.). To build strategic planning organisation have to evaluate various
concepts, theories and practices one of which are:
Ansoff Matrix:
It is an alternative corporate strategy that majorly focus on organisation's present and
potential products and markets. With the help of existing and new products and with existing and
new market major opportunities should be find out.
There are four major spheres that are as follows:
Market penetration:
In that step firms or organisation seeks to obtain growth by using existing products and
services in their current market segment with aim to enhance market share. By using that strategy
organisation sell more products and services to their current customer with new consumers that
are part of same marketplace. Such as if an organisation deals with people aged between 30 to 50
then involve to attempt to same age group. John Lewis focus in same manner in their products of
Home and garden furniture and accessories by innovate their existing products with new
products. By implementing that strategy organisation can be better serve the new customer
segment.

Market development:
Market development is when an organisation seeks development by targeting existing
products and services to their new market segment. John Lewis majorly focus on market segment
decision in four arena that are Existing consumers, competitors customers and non buying in
current segments with new segments. So they are major players to develop a new product for
new segment of market.
Product development:
Product development refers to when an organisation aims towards to develop a new
product into existing market. It can be possible by developing new competencies and needs new
and modified products for the existing market (Azma and Mostafapour, 2012). John Lewis see
product development as the first stage to develop or generating within the strategic process. They
innovate products after finding out the major possibilities.
Diversification:
Diversification is when in an organisation and its corporate strategy find out possibilities
to enter into new market in which firm not currently deals. John lewis not operating in that sector
because they are operating in same products and services. Their campaign “Monty the Penguin”
which won the hearts of million of people and as such it contains continuity that helps in enlarge
their opportunities and grab attention of large no. of consumer base.
From the above mentioned strategy it has been summarised that John Lewis is one of most
innovative and techno oriented organisation that leads in market by adopting various strategies in
proper way (Noe and et.al ., 2017. ).. It has been recommend that John Lewis have to avail
market penetration strategy the reason behind it that it is less risky in nature and helps in
leveraging many of existing resources and capabilities of an organisation to enhance limits of
market. On other hand market penetration limits the market approaches and John Lewis is
enough competitive firm so by adopting new and techno advance products it can easily lead into
marketplace.
In context of John Lewis they planned and execute it in proper manner by distributing the
roles and responsibilities in proper manner. With the help of Ansoff matrix organisation can be
focus on a area in which they spend their time and money to accumulate right kind of knowledge
and information to remain always relevant in the marketplace. The organisation majorly focus on
the rational benefit of the product and services and ignores the aspect of the emotional and

cultural aspect of their well known brand in the whole world. It helps in get growth opportunities
by matching up with existing and new products and services by existing and possibly by new
ones. By using the market development they enlarge business opportunities in positive manner in
order by John lewis parter shop the major retail behind wait-rose that emphasise on the
importance of investing in its brand and raise the consumers experience by market expansion
with new products that helps to attract large no. of consumer base in positive manner.
CONCLUSION
From the above report it has been summarised that Business strategy is one of the most
significant for an organisation and it is a combination of major decisions that should be taken and
that actions should be performed by an organisation to accomplish their goals and objectives. In
order to organisation while operating in competitive marketplace they have to remain
competitive analyse various tools and techniques that helps to find out the major insights to show
competitive strength of organisation. With the help of various tools such as PESTEL and SWOT
analysis an organisation can draw potential advantage out of them and reap out controlling tools
to reach at goals and objectives.

organizations. Procedia Technology. 1. pp.102-106.