Growth Strategies for JD Group PLC

 

Introduction

The JD Group was initially operating in the  Arndale Center in Manchester in 1983. Furthermore, JD Group Plc is a multinational company that operates in the retail sector of sports and fashion and other related accessories. The company has a portfolio of the products such as appeal, footwear, accessories, and recreational products. The JD Group Plc targets the customers of the different markets by focusing the products under the numerous brands such as Scotts, Black, Sprint, Tessuti, Tiso, Deakins, Focus, Naylors, and the Go Outdoors. Furthermore, it also affords the various products that are related to the gym and the membership facilities. JD Group is one of the companies which properly follows the business and the marketing strategies through which they can best satisfy their customer and retain them for a longer period. JD merchandise its products through e-commerce. The company has diversified its operation throughout the different parts of the world to get a competitive advantage and get great revenues and market share. The countries in which JD operates are the following, the UK, France, the US, Dubai, Singapore, and Hong Kong and there are much more other than the countries. From this, we can understand how wider JD is spread and how many operations it would be doing, how much customer handling JD is doing.

Product-Market growth matrix

The JD Group is successfully doing its operations through strategic growth decisions. Their decisions keep changing because of the continuously shifting trends of the consumers. JD has remained successful in using the Ansoff continuously. The way of its using the strategies is given below.

 

 

Market penetration

The market penetration strategies are used for existing products in the existing markets.

Enhanced distribution

The JD group should look after the innovative means of distribution by enhancing the distributors.

These improved channels will help JD to reach new customer segments in the same markets.

Competitive pricing

The JD Group should decrease its prices to attract customers in the existing markets.

Competitive price can get a competitive advantage to JD Moreover, it will increase the market share of the JD. 

New product benefits and features

The JD should identify and introduce the new features for the existing products in the existing market.

New features through the customizations will lead to more market share in the same markets 

Then customers should be informed through the promotions for the new features.

 Increased frequency of consumption

The JD should also focus on more awareness and promotion to increase the usage and frequency of the products which will ultimately lead to higher consumption which will further lead to increased sales volume and high market share.

Market development

The JD can also increase the growth of the business by launching the existing products in the new markets by following the different strategies. 

Research and development

JD can invest in the research and development to identify the new markets and customer segments because the JD group has the good net profit margin and the net profit margin hence they can invest in the research. Furthermore, research and development should concentrate on the market trends, cultures and the behaviors of the different consumers hence strategies should be followed accordingly.

 

Regional and international expansion

First of all, JD should expand regionally and then internationally which will include the geographic regions and different cities. Furthermore, these regions should also consider cultural differences.

 

Brand awareness

JD should also be aware of the customers of new markets regarding their brands that awareness will help the company reach out to the new markets, and segments and increase the visibility of the brand. Furthermore, more awareness means an increased brand recall rate. That prompts customers for buying that product. Finally, brand awareness will increase sales and help the company is growing into new markets.

Customer education

The JD should also work on educating the customers for making them understand the product offerings which will further understand the product patterns that will ultimately lead to the overall market development).

Product development

The JD should also work on entering new products for the same markets through different marketing strategies.

Modifications to existing products

JD can improve and modify the same products through the different customization tactics and offer those products in the existing markets which will lead to increased sales and market share.

Launch new products

JD should invest in research and development to identify the new and rising demands of the customers. After the research and development company should launch the new products in the existing markets this will lead to increased sales and market share.

Strategic partnerships

JD should also focus on the strategic partnerships with the suppliers, investors, and different channel partners, with these partnerships JD can better access the new markets share..

 Product quality

The company can also do the variation on the bases of the prices and it can introduce them in the existing markets accordingly this will help JD in targeting the new target markets and consumer segments.

Research and development

JD should invest in research and development to analyze the new market trends and the behavior of the consumers. Furthermore, JD should also invest in research to analyze the position, products, and customers of the competitor's share.

Diversification

Diversification refers to the business growth through the new product developments in the new markets. JD helps the companies like JD to remain innovative and competitive.

Vertical diversification

JD can do the vertical diversification for its business growth by introducing the new products in the same product line, this means that the new products of the JD are the similar under the different categories just for the sake of creating the minor differences by using the customization tactics to target the huge number of the segments.

Horizontal diversification

JD can also introduce new products that would not be associated with the existing products. This will help the company to reach out to customers who want completely new products.

Mergers and acquisitions

One of the major opportunities for the growth of the JD is the mergers and the acquisitions hence JD could acquire the new business to capture the market share of those as well. But JD should be careful on acquiring the new business. Like it would be better for the JD to acquire those businesses whose business model matches the JD’s business model because there would be synergies between the acquired and the existing business which would reduce the cost by using the same resources as well at the acquired business.

Conclusion

JD Group Plc has been operating in various parts of the world due to which it has the more complex operations and the different marketing strategies throughout the world. But the good advantage of the operating world widely is that it generates more revenues and the market share because of the many customers and the markets that are developed and enriched with the various resources and the technology. But it also faces certain issues due to operating world widely like it has to do a lot of research and development to understand the different market, customers, and their needs and the preference to better satisfy their needs. Furthermore, JD also faces the different political pressures because of operating globally like many times countries but the high tariffs and the quotes for restricting the import of the countries may be because countries want their own countries' products to be used within the border and not to spend the money outside their borders. Many other factors affect the JD that have been discussed in the SWOT and the PESTLE analysis economic technological social and legal. Moreover, various growth strategies have been suggested that JD can follow to develop the market and the products