Strategic Report: Analyzing Jaguar Land Rover's Market Strategy

This strategic report offers a comprehensive analysis of Jaguar Land Rover (JLR), focusing on its strategic decision-making processes. The report begins with an introduction to strategic development and its application to JLR. It then provides a detailed strategic audit overview, examining resources, va...Read More

STRATEGIC REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
STRATEGIC AUDIT OVERVIEW............................................................................................3
STRATEGIC OPTIONS.............................................................................................................4
STRATEGIC SELECTION.........................................................................................................6
STRATEGIC IMPLICATIONS..................................................................................................7
IMPLEMENTATION NEEDS....................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic development is a process where the management of a company analysed and
evaluated the different options that basically lead to change in the existing strategies and policies
that are prevalent in the organisation (Zeynal and et.al., 2017). In the current report, Jaguar Land
River has been selected as the chosen company and an analysis will be done on the manner in
which strategic decision making can be done. The strategic audit overview will be presented and
this will be followed by the evaluation of different strategic options. Then a selection strategy
will be presented for jaguar and consequently the strategic implementation will also be identified
and critically analysed. Lastly, the implementation plan and a conclusion of the Jaguar company
would be presented comprehensively.
MAIN BODY
STRATEGIC AUDIT OVERVIEW
The process of strategic audit overview basically signifies the mechanism through which
an in- depth analysis of the company is conducted so that it can be overviewed that whether the
company is achieving the objectives that it has developed (Sople, 2016). It analyses the different
aspects of a business and the collectively presents a proposed direction that the company should
adopt in order to develop correct strategies that will help in achieving the intended business
objectives and goals. There are six major phases though which strategic audit for Jaguar Land
Rover can be done:
Resource audit: Under this, the existing resources that are available in the company are analysed
and it can be adequately ascertained that the existing resources of JLR are wide and extensive.
Even after the acquisition of Tata, the company is strong in its assets aspect (Van Den Berg and
Russo, 2017).
Value Chain Analysis: The primary activities of the company includes the assembling all the car
parts and the secondary activities involve the different HR and efficiency related activities that
shows that the overall value chain for Jaguar is very comprehensive and well developed.
Core Competence Analysis: Identification of the core competencies is essential for every
organisation as these help in the achievement of competitive advantages over other competing
firms in the industry (Özcan, Mondragon and Harindranath,). The strong brand value at the
global level and the titles that they have won shows their supremacy over other brands.
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Performance Analysis: It can be adequately said that the net revenue that JLR was able to earn
i.e. £ 24.2 billion signifies the immense growth of the company. It can be said that the
performance of the company is well in the existing market scenario.
Portfolio Analysis: After the acquisition of Tata over JLR, the company has gained strategic
prominence (Walters and Helman, 2020). The BCG matrix analysis clearly signifies the present
status of the company as cash cow where the inflow of funds is huge i..e market share is wide but
the growth is potentially lower.
Swot Analysis: Swot analysis done for Jaguar shows that the strengths and opportunities that are
available to Jaguar are much more than the potential threats thus presenting favourable aspects.
However, the cutting back on the labour is the major weakness for JLR and the threat that corona
pandemic presents to the company is significant.
STRATEGIC OPTIONS
Strategic options mainly signifies the different options that are available to a business and
then analyse all the possible opportunities that can be adopted towards selection of the best
strategic options for the company (Lauer, 2019). The Porter’s generic strategies presents four
critical strategical options amongst which one can be selected by the Jaguar Company based on
the existing position that was identified in the above section of strategic audit overview. There
are four key pints based on which the strategies are identified in Porter’s generic model. These
are on the basis of cost, differentiation and focus.
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Figure 1: Porter's Generic Strategies
Source: Cavaleri and Shabana, 2018
The cost leadership strategy can be adopted when the market is wider i.e. the cost can be
kept at minimum and even then the profits can be earned. However, in order to do this,
economies of scale must be exercised where the cost can be distributed over a wider targeted
customers segment.
The differentiation strategy can be implemented when the products that is being sold is
not similar to other products that are being sold i.e. the cost is kept higher and he targeted market
segment is also wider (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). This is a very
profitable opportunity for any venture or organisation because profits are high.
Cost focus strategy can be adopted in the markets that are comparatively much narrower
and therefore by specific advertising or targeting, the market can be captured even after keeping
the costs at such lower points. The segment specific targeting can be used for better marketing
and promotional activities.
The differentiation focus strategy is the one where due to the unique aspect of that
particular product; the price is kept higher even in the narrower market segment (Bell, Dyck and
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Neubert, 2017). Adopting this strategy a cause both greater returns and increased brand value but
the brand name and performance is the key behind this.
Overall it can be evaluated that there are so many points available for Jaguar for current
expansions and investment that they have planned. However, the best strategy that they can use
is the differentiation focus strategy (Cavaleri and Shabana, 2018. ). The reason behind this is
that the brand name of Jaguar is extremely well developed and the quality of products and
services that they offer has helped them in the capturing of market despite no- discounts.
STRATEGIC SELECTION
After the different alternatives has been identified and analysed and the correct designated
strategy that has been selected of the company, strategy can be identified i.e. the process of
implementing such diseases etc. (Dawes, 2018). There is several option that are available to
management and other heads i.e. CEOs of the company. The development of the market can be
done in four different manner i.e. market penetration, product development, market development
and lastly diversification.
Figure 2: Strategic selection
Source: Schawel and Billing, 2018
Market penetration strategy can be adopted when the existing products are to be launched
in the existing market and hence the chances of expansion are minimal (Yin, 2016). Here the
products and services being offered are well known and acknowledged.
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The product development strategy can be adopted when there are some new or innovative
products and these can be further launched in the existing markets. The products cater to the
needs of an entirely different segment and therefore, can be termed as the new products.
The market development is the third strategy that can be adopted where the existing
products are launched in some new markets (REZAEI, KHAVARIAN and GHAFURZADEH,
2016). This strategy helps in capturing new market shares and thus developing the targeted
market as a whole. By a simple adjustment the existing marketing mix as per the new economy
in which expansion is to be done, this strategy can be achieved.
Diversification is the last strategy that is being analysed where the product is new and the
market is also newer. This strategy is an extremely risky venture and can be adopted only when
the management is % sure regarding the viability and success of the new product that has hence
been developed.
After the identification of the different strategic alternatives earlier it was decided that the
differentiation focus was the key strategy that could be adopted by Jaguar. This can further be
done using the market development technique where the products that have already been made
can be launched into some entirely new markets (Schawel and Billing, 2018). This is an
extremely necessary step because all the existing market of JLR are or are almost at their
saturation points and therefore, it is necessary to take correct actions in a timely manner. By
adopting this strategic selection method, the correct expansion and strategic development of the
company can take place.
STRATEGIC IMPLICATIONS
The strategic implication basically signifies the impact that the development of strategies
would have on the company i.e. directly or indirectly. This is the ascertaining of the
consequences that can arise due to the selection and implementation of the strategies that have
been selected (Bostrom, 2017).
The selected strategy is to expand into the newer markets with the existing products that
are available within the company. However, this can have a significant impact on the existing
workforce and current investment of the company.
As it was identified earlier the market development strategy ash been selected but the
reduction and removal of the existing staff particularly in UK presents additional problems to the
rarely problematic condition of the staff there (Jiang, Scott and Ritchie, 2018). The costs have
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been cut down therefore; there are many employees that are being let go. This has already
created a severe matter between the labour union and the company. in such scenario of the
market development activities is carried out in a new country then this can prove to be a
problematic situation. The employees that would be hired there would not be correct situation of
the existing staff of UK that is being removed.
Another aspect is the financial aspect i.e. the current pandemic has left the businesses in an
extremely tight spot where the unemployment rates are on increasing thus creating a financial
burden as well (Castillo and et.al., 2018). The current finances are not adequately available with
JPLR and this can turn out to be a major challenge or limitation towards the management of the
resources in the company. It can also be said that the misbalance can be created by entering right
now into any new country or venture.
Therefore, overall it can be said that the current situation is very volatile and therefore, the
business expansion would require consideration of many aspects, agreements will need to be
formulated and so on (Sheehan and et.al., 2016). This is necessary but still if the company is able
to target the new contacts quickly, then the chances of potential risks that have been indentified
above can be minimised.
IMPLEMENTATION NEEDS
After the finalisation of all the different aspects that are related to the strategy
development, analysis, evaluation, selection and then implementation, it is necessary to consider
certain points before the strategy is actually implemented. These are:
Defining the strategy: First of all the clear objectives under the expansion strategy that Jaguar
has finalised upon needs to be developed. This will help in avoiding any potential risks and
challenges that can arise (Williams and et.al., 2018).
Developing proper plan: A proper strategic plan detailing every step and along with it a backup
plans should be prepared so that every stage can be clearly categorised and identified. This can
assist in ensuring that a direction is available to all the employees and the management.
Identifying KPIs: It is very important to identify the key performance indicators of a strategic
plan through which it would be identified that whether or not they are in the correct direction or
not (Zeynal and et.al., 2017). The goals need to be met regularly and hence KPI monitoring is
necessary.
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Developing a strategic rhythm: All the activities and the sub activities that have been finalised
must be brought into the routine habits i.e. the workers should be comfortable with the tasks that
they have been allotted.
Implementing reporting: At every stage the action should be reported regularly i.e. the
stakeholders of the company and other relevant parties must be kept informed about all the
progress and development that is taking place in the company (Zhang and et.al., 2018). This will
ensure that they are in agreement with the decisions being taken by the public.
Linking performance with strategy: This is the last step for implementation but Jaguar should
always keep a checking the actual performance and then like with the expansions strategy in
form of rewards and incentives so that the overall quality of the wok can improve.
Hence, in this manner, jaguar should implement the strategy hence identified.
CONCLUSION
The research conducted the in the report above helps in concluding that the strategy
development is not a very easy task and requires consideration of a number of aspects before any
finalisation of strategy can take place. In this report as well, the different aspects related to the
current status of Jaguar and how the strategic decisions related to expansion could be taken was
identified the report concluded that this is a very critical aspect and needs to be carried out in
extreme detail.
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REFERENCES
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Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
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generic strategies in pure online firms: A case study approach. Strategic Change. 28(3).
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Jiang, Y., Scott, N. and Ritchie, B.W., 2018. Crisis Management and Strategic
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