Case Study Jysk

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Case exam

Jysk

Marketing Management

Table of Contents
1. Outline3
2. Value Chain4
2.1.1 Primary activities4
2.1.2 Support Activities5
2.2 Conclusion5
3. Segmentation, targeting and positioning6
3.1 Market Research6
3.1.1Market research method7
3.1.2Data Collection7
3.2. Conclusion7
4. Human Resource Management8

1. Outline

Internal
To understand Jysk’s strenghts and weaknesses, Michel Porter’s Value chain analysis will be made. In order to conduct value chain analysis, the company is split into primary and support activities. It would have been nice to include an analysis about the financial situation but this report is more about determining how to position Jysk into Chinese market and because of that the financial part will be excluded. An in-depth analysis and suggestions about human resource management, a part of the organizational structure, will be made to understand better the core values what Chinese retail staff should have. A graph with pricing positioning with some of Jysk’s products is also made to show briefly in what price range the products are. The importance of quality is also added. External

Market research factors are explained also with data collection methods. It would have been nice to compare Jysk with biggest competitors in Chinese market but because of the limited number of pages and it will not add value to the Chinese employees, this will be excluded.

2. Value Chain

To understand how Jysk has set up the primary and support activities to make the company run, Michael Porter’s value chain has been done.

2.1.1 Primary activities

Inbound logistics:
Jysk has decided to cooperate with global logistics company DHL. That means that DHL are now responsible for all the logistic matters in Jysk.

Operations :
All the production of Jysk goods is outsourced to external manufactures all over the world. This has kept them from big investment when building their own production facility but not having one will have a risk and very strict control has to be over the production.

Outbound logistics:
DHL is also responsible for all the outbound logistics in Jysk.

Marketing &Sales:
Jysk has three core values: reliable, straight forward and responsible. Jysk’s marketing is down-to-earth, straightforward but none the less aggressive with big advertising budget.

2.1.2 Support Activities

Infrastructure:
Jysk is divided into JYSK Nordic, Däniches Bettenlager and a number of franchisees. They are distributed into many countries and the full list can be found on jysk.com.

Technology Development:
Jysk has invested into a super storehouse in Denmark which will supply up to 300 Jysk stores around the world. Jysk has developed an electronic database so everything is now registered electronically and all the goods can be easily tracked around the warehouse. With that a lot of damaged goods and wrong deliveries have reduced. Jysk has upgraded their storage system which has reduced lead time of orders.

Human Resource Management
On JYSK’s homepage they have pointed out three essential values of the workers. Firstly, they have to be service minded, reliable and professional. Secondly, helpful with positive attitude, honest and flexible. Last but not least the employees have to be committed, loyal and cooperative

Procurement
Jysk does not have their own supplier so they have to find the best suppliers that would fulfill both ethical and qualitative standards. 2.2 Conclusion

By not owning every part of the value chain, Jysk may face some difficulties when wishing for the best performance. The supplier has to ensure the availability of raw material. Any mistake will make a noise in the supply chain which will have an impact producing the product with best quality and exact delivery time. To have a good flow in the inbound and outbound logistics, Jysk has established cooperation with DHL. As good aspects, Jysk has centralized storehouses...
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