Assessment Cover Page

Student A Student B Student C Student D Student E

Student Number(s):
51730022 # here # here # here # here

Maynara Cristina de Moura Silva

Student Name(s):
(In the same
order as student
numbers above)
Manoj Suranga Jothimuni

Lecturer’s Name(s):
Strategic Performance Management
Module Name:

Assignment Title: CA

Due Date: 28/04/2024

Date of Submission:
26/04/2024

Requested Word Length: 2000

Actual Word Length (excluding list of references): 1784

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Date: 26/04/2024
Introduction

JD Sports Fashion Plc, known simply as JD Sports, operates within the retail
industry, focused on sportswear such as footwear, clothing and accessories. The
company has been established as the leader of the omnichannel retailer of sports
fashion, meaning that the firm has a multichannel approach to sales that aims to
provide its customers with an unchangeable shopping experience whether they are
buying online, by phone or in a physical shop. JD Sports’ investment strategies are
focused on brand acquisition and operating globally with significant operations in
Europe, Asia, Australia, and the United States. Its product portfolio contains the
leading brands like Nike, Puma, and Adidas which allow JD Sports to create good
offers.

Environment / Background

In order to understand how industry trends are affecting companies such as JD

Sports, the Porter`s five forces and the PEST analysis are going to be used to
examine the political, economic, social, and technological factors.

PEST analysis

Political factors

 JD Sports is required to adhere to retail laws as well as trade policies across

territories it operates in. Trade policies might change in terms of tariffs and
international agreements, hence causing an increase in the costs of goods that might
be transferred to consumers, thereby affecting sales.

 Corporate tax rates, VAT, and other tax laws of countries such as Ireland or
the United Kingdom, among others in which JDSports does business, might
significantly alter its profitability, hence the need to consider such factors before
choosing a suitable location. Also some jurisdictions have very complicated tax
systems, which could create difficulties for financial planners.
Economic factors

 People spend differently depending on how much money they make ad this
determines whether they buy certain things or not. If they are unemployed, they are
likely to purchase less while people who are financially better buy more, including
clothes and shoes.

 As JD Sports operates overseas, it is exposed to risks related to exchange

rates. The company sells and buys goods in different countries with different
currencies, and this can lead to a huge impact on its revenue.

Social Factors

 Changing Consumer Preferences: Consumer tastes in fashion and

sportswear are always on the move. JD Sports needs to be spot on when it comes to
patterns so that it is able to serve its clients well considering their preferences for
more relaxed, athletic or environmentally friendly clothes.

 There has been a growing interest in fitness and wellness, caused by the
pandemic. Due to the increased demand for sportswear and equipment, JD Sports
has the opportunity to increase the range of products it offers in categories such as
fitness clothing, accessories, and equipment.

Technological Factors

 Because more and more people are purchasing online, strong e-commerce
systems are required. Technology that improves the online purchasing experience—
such as mobile compatibility, tailored suggestions, and safe payment methods—
should be purchased by JD Sports.

 Supply management requires the use of the latest technologies such as real –
time inventory management, smart warehousing, and effective logistic systems. JD
Sports can reduce expenses, increase productivity and guarantee that the proper
goods are available.

Porter’s Five Forces Analysis

 Threat of Substitute Products: Sportswear substitutes are not that much of a

threat because customers stick to certain brands and because many sport-related
products have their own, unique performance characteristics. Despite that, lifestyle
segments are at risk from alternative fashions.

 Bargaining Power of Suppliers: JD Sports sources its branded products from

a number of suppliers. Top brands have substantial authority to impose terms
because of their brand value, while the corporation may have relatively small
negotiating strength.

 Threat of New Entrants: Because of the substantial brand loyalty and scale
efficiencies that established competitors such as JD Sports have created, the
industry has considerable obstacles to entry. Online retail platforms do, however,
remove some of the obstacles for new competitors.

 Bargaining Power of Buyers: Due to the variety of alternatives and cheap

switching costs, customers have significant negotiating power, particularly in the
digital era when price comparison is made easily.

 Industry Rivalry: With competitors like Nike, Adidas, Under Armour, and plenty
of other brands and stores competing on price, quality, brand identification, and
product innovation, the sportswear industry is very competitive.

JD Sports’ Current Strategies (290/600)

In the very competitive sportswear and fashion retail business, JD Sports uses a
number of strategic measures to preserve and grow its competitive edge. These
tactics aim to capitalise on JD Sports' advantages and set the company apart from
rivals. JD Sports maintains and improves its competitive edge in the following ways:
  JD Brand First: One of the key parts of JD Sports’ strategy is to expand
internationally. The company has managed to do this by acquiring several
companies which has enabled it to enter new markets such as the United States as
well as parts of Asia, including Australia. It overcomes its dependency on the United
Kingdom market by taking up a market presence worldwide thus spreading
operational risks and income sources diversification.

 Multi-Channel Retailing: JD Sports has created a strong multi-channel retail

strategy by fusing its modern internet platform with its physical shops. This strategy
offers wide reach and operational flexibility in addition to improving customer
convenience with click-and-collect capabilities. JD Sports responds to a wide range
of client preferences and purchasing behaviours by optimising both online and offline
customer experiences.

 Sustainability Initiatives: JD Sports is progressively integrating eco-friendly

procedures into its business operations as customers become more interested in
sustainability. This implies that the company is making items using green materials
besides enhancing processes that do not contribute adversely to the environment.
Such initiatives help build brand image while drawing eco-conscious consumers
hence profitable.

 Product differentiation: JD Sports is committed to offering a wide range of

exclusive and in-demand products from leading brands. The company negotiate with
the partner brands to enable them to sell goods that are not easily found in the
competitors` stores. This gives them an advantage and draws clients who are
searching for exclusive products.

An understanding of JD Sports' growth and expansion method can be achieved by

examining its strategies using the Ansoff Matrix. This is a business growth strategy
that takes into account the approach the company decides to use. It suggests that
businesses expand by dividing the objectives into four quadrants by the matrix:
diversification, product development, market penetration, and market development.
Every one of these methods represents a distinct growth plan for the company.
 PRODUCT

Market Product

Penetration Development

MARKET

Market Diversification
Development

Market Penetration:

 The continuing growth of JD Sports, both online and in the physical market, is
part of its plans to reinforce its position in various markets where it operates. Such
an undertaking involves the establishment of additional stores in strategically located
places with a high concentration of clients.

 In addition, they should consider focusing on making loyalty plans, promotions

and improving shopping experiences to boost sales through existing channels hence
attracting customers to return.

Market Development

 JD Sports extends its market by moving into new areas where there is an
increasing need for sports products and sportswear items - opening transnational
markets including North America, Europe, and Asia.

 To break into new markets, companies can adjust their product lines and
promotional activities to suit local preferences and traditions by relying on the same
name they have built up.

Product Development

 JD Sports engages in product development by partnering with brands to

produce new and exclusive products. This involves securing exclusive contracts with
popular sports brands, launching limited edition collections and launching new lines
of products.
Diversification

 JD Sports could choose to diversify into other markets or areas that are
complementary to what they already do. An example is venturing into the fitness
equipment market to provide gym equipment, accessories as well as sportswear or
casual clothing. Thus, even though it belongs to a different product category, it can
still be tied to its main business which involves encouraging healthier living practices
among its clients while also benefiting from having built up some measure of brand
identity among various people who buy their product.

Importance of Emergent Strategies During Turbulent Times

Emergent strategies are very important for an organization to cope, survive and grow
in uncertain times such as the COVID-19 pandemic. This essentially involves using
flexible innovative ways of reacting to unforeseen challenges and opportunities
ahead by diverging beforehand set out plans as well as conventional methods. In a
reactive way, JD Sports enhanced its online presence and digital sales channels
after the store closures during the pandemic, which demonstrated the significance of
emergent strategies. And with investments in an outer system that is digitalized, it
has been able to meet the new demand.

JD Sports was influenced in the development of their new strategies by the

pandemic, putting the safety, satisfaction, and health of their clients as the first thing.
For instance, in its stores, the inclusion of protection was one way to have customers
place on trust even during these times by frequent cleaning settings as well as social
distancing protocols in order to people feel safe.

JD Sports faces a mix of opportunities and challenges as it navigates future

growth in the dynamic retail landscape:

Opportunities:

 To strategically incorporate its brand recognition and reach unexplored

markets, JD Sports would continue to expand its revenue streams and enter new
countries.
  Expanding can be done by JD Sports through accepting innovation as well as
technology. Investing in smart retail technologies can be one way of doing this thus
improving operational efficiency and customer interaction while integrating virtual
reality for ultimate shopping experience as well as incorporating advanced analytics
on personalized advertising.

Challenges

 The sports and athleisure market is a highly competitive place for JD Sports
due to the fact that there are a lot of other players who have been in this business for
many years and also because of the emergence of e-commerce giants. If JD Sports
wants to keep standing where it is now and even grow bigger, then it is essential for
them to put up with innovative ways that will make them set apart, and put
themselves first among others by having different types of products, different prices
and offer goods that no one else does.

 Changes in regulation, economic fluctuations and geopolitical tension can

impact JD Sports` operations and profitability. This implies that the company need to
be always aware in order to manage the uncertainty.

Conclusion

JD Sports has managed to move through a demanding and competitive retailing

environment by judiciously investing in market extension and product variation. This
is in line with strategic objectives and customer expectations, in order to do so JD
Sports should use these new approaches and purposive action to overcome external
challenges while taking advantage of opportunities.
Reference list

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https://www.jdplc.com/.

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