JD Sports Fashion plc is a British multinational company that retails sports fashion. David Makin and John Wardle founded the retail sports company in 1981. The company has established a network of approximately 3400 stores in various countries across the globe. Today, we’ll discuss the PESTLE analysis of JD Sports; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting JD Sports
Some of the main political factors in the JD Sports PESTLE analysis are as follows;
I-Trade Polices
JD Sports is operating its retail fashion and sports business in various countries across the globe. The company sources raw materials and supplies from various countries and outsources its production and manufacturing processes. However, if the sourcing country doesn’t have a good and effective relationship with the UK, they would impose strict policies for the British brands to decrease the trading of products and goods with them.
II-Government Regulations
The government regulations are very strict and tight for the sports and retail chain store companies. They focus on areas like transparent supply chain networks, raw material sourcing processes, production and manufacturing operations, and ethical practices. However, the objective of strict policies is to ensure the social responsibility and ethical practices of the retail chain fashion brand.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. When the country is going through political turmoil, violent activities, roadblocks, and other disruptive activities; then it delays the raw material supplies and finished goods. As a result, the company can’t run its retail operations smoothly with delayed deliveries of raw materials to the production facilities.
Economical Factors Affecting JD Sports
Some of the main economic factors in the JD Sports PESTLE analysis are as follows;
I-Economic Growth
The country’s economic growth and development play a crucial role in the retail sale of businesses and companies. When people have a plethora of employment opportunities and stable jobs, it implies their financial stability and it allows them to spend their income on luxury products and goods. However, it is due to the fact that they have higher purchasing power and their high affordability.
II-Currency Exchange Rate
JD Sports is operating its retail business operations in various countries across the globe. The company is also dealing with multiple currencies by sourcing materials from various countries and selling retail items in various markets. A small change in currency exchange rate would negatively impact the company’s revenue and profitability by increasing the cost and expenses.
III-Cost of Raw Material
There are multiple factors impacting the cost of raw materials and expenses to the company. They comprise labor cost, raw material sourcing cost, manufacturing and production processes, and the amendments in the minimum labor wages. However, increasing costs and expenses would increase the retail price of products and goods of JD Sports.
Social Factors Impacting JD Sports
Some of the main social factors in the JD Sports PESTEL analysis are as follows;
I-Fashion Trends
The fashion trends of the retail market keep changing due to the needs and preferences of the customer market. JD Sports should pay great heed to the changing fashion trends of the customer’s market and keep adjusting its retail apparel and sports items relevant to the customers’ needs and demands.
II-Fitness Trends
The consumer market has become highly conscious about their health, diet, and fitness activities. They are spending a lot of money on health and fitness activities and sports apparel. It presents a great opportunity for JD Sports to keep up with the growing customer market trends and amplify its network and sales.
III-Cultural Perception
Fashion designs and apparel styles are highly dependent on cultural perceptions. People from different cultures prefer different types of styles and clothing. JD Sports should produce and offer multiple types of styles and designs relevant to the needs and demands of the customer market.
Technological Factors Affecting JD Sports
Some of the main technological factors in the JD Sports PESTEL analysis are as follows;
I-E-commerce Platform
JD Sports has invested a significant amount of capital resources in the development of its retail e-commerce platform. It allows the retail chain store company to keep up with the growing online shopping trends of the customers. According to an estimate, the company’s e-commerce platform generates a significant amount of sales for the brand.
II-Online Payment System
In order to provide a seamless shopping experience to customers, JD Sports has launched an online and digital payment system for online shopping. It allows customers to use multiple types of payment methods and the company accepts them all. The objective of the digital payment method is to simplify the online shopping experience for customers.
III-Advanced Technology
JD Sports is employing the latest advanced technological tools and equipment in its operations. They consist of data analytics to predict customer shopping patterns, AI and ML in its supply chain and warehouse management processes, and automation technology. However, the latest and advanced technology has helped the company to achieve efficiency in its operations and processes.
Legal Factors Impacting JD Sports
Some of the main legal factors in the JD Sports PESTEL analysis are as follows;
Regulatory Compliance
JD Sports needs to comply with the government regulations and policies of different countries. They comprise labor laws, sourcing requirements, production and manufacturing processes, retail prices, and others. Regulatory compliance would help the company amplify its customer market reach, network, and sales.
Environmental Factors Affecting JD Sports
Some of the main environmental factors in the JD Sports PESTEL analysis are as follows;
Sustainability Initiative
JD Sports should make a strong commitment to environmental sustainability initiatives. They comprise investing in renewable sources of energy, biodegradable packaging, and recycling of used clothes to decrease environmental waste. Environmental sustainability initiatives would help the company to keep up with the growing environmental sustainability trends.
Conclusion: JD Sports PESTLE Analysis |PESTEL Analysis of JD Sports |External Environmental Analysis of JD Sports | Strategic Analysis of JD Sports
After an in-depth study of the pestle analysis of JD Sports; we have realized that JD Sports is the world’s leading retail fashion and sports brand. If you are learning about the JD Sports PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
