The aim of this case study is to critically analyze the current strategic situation and future strategic direction of JD Wetherspoon Plc by using the macro and micro environment analysis, to illustrate and evaluate its internal and external situation and its competitive position. As well as to gain competitive position in the market. To implement and analyze the strategy using Porter’s five generic forces and also discuss a possible strategic direction; by combining with the life cycle portfolio matrix development before drawing to a conclusion.
JD Wetherspoon Plc is one of the leading pub chain and budget hotel in United Kingdom. The company has 775 pubs spread in UK and Ireland. The pub first started on December 1979 in London and started their first budget hotel in 1998 at shrewsbury. In 1999 they open a new branch across the country in Ireland. In 2000 the company took over the group of ten Lloyds No 1 pub. The aim of the company is to provide a best customer service, a good quality, choice and good value for food and drinks served with a well trained and friendly staff at reasonable prices. They also aim to maintain the pub in excellent condition. The pub offer a wide variety of local real ales and brewed beer from UK and Ireland for an affordable price that the other pubs cannot compete. Over the last thirty years they won a lots of national and regional awards. According to Tim Martin(2009 – 2010) ‘We were the first company introduce non-smoking areas in pubs, nearly 20 years ago and the first to offer a food menu all day’. JD Wetherspoon Plc mission statement is generally to provide the best CQSMA (Cleanliness, quality service, maintenance and atmosphere) standards in the pub world, to be the best company to work for and, by doing things to be the most profitable.
2.0 Scanning Environment
Environmental scanning is the acquisition and use of information about events, trends, and relationship in an organizations external environment, the knowledge of which would assist management in planning the organization’s future course action. It is a tool that the company can use to avoid strategic surprise and to ensure long-term stability and growth of the company. As an organization it is important to scan the external environment of the business to identify possible opportunities and threats and its internal environment for strengths and weakness(Choo; Hunger & Wheelen). 3.0 SWOT analysis
Using SWOT analysis has a good impact in an organization. It will help to analyze the company external environment by determining the strengths, weaknesses, opportunities and threats. The marketer will able to focus on the key issues and provide a strategic planning and compete with the market. JD Wetherspoon Plc SWOT analysis shows that they moving rapidly and sustainability (see table 2.1 JD Wetherspoon SWOT analysis). In the table it shows that the company has powerful strength and opportunity that lead to success. One of the strategy used as a strength is economies of scale, it helps the company to buy the product in volume in able to have a lower cost and pass it to the consumer in a lower price. And because they are a big group of company that can dominated the market share all over United Kingdom based on the number of branches been owned. JD Wetherspoon opportunity is to develop new product and services. According to Tim Martin, 2009 ‘ we where the first company to get around the brewers’ monopoly of pub ownership, by getting licenses and planning permission to convert shops, banks and showroom into pubs’. JD Wetherspoon was the first pub company to serve food throughout the day and the first to offer breakfast, from 9am in all branches. JD Wetherspoon has minimal weaknesses that they can find a solution easily such as poor quality service. The company has a threats rising because of the government legislation i.e. rising of tax and VAT, benefits cut. They manage...
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