John Lewis

Topics: Strategic management, Michael Porter, Retailing Pages: 6 (2057 words) Published: August 11, 2013
Table of Contents
1. Introduction3
2. Theory of Michael Porter’s competitive five forces model3 3. Concept of value chain analysis 3
4. Role of Information System 3
5. John Lewis3
6. The implementation of Michael Porter’s competitive five forces model5 6.1. Traditional competitors 5
6.2. New market entrants5
6.3. Substitute products and services 5
6.4. Customers5
6.5. Suppliers 5
7. Value chain analysis 5
8. Conclusion6
9. References7

1. Introduction.
The John Lewis brand was founded in 1864 by John Spedan Lewis partnered with his two brothers in Oxford Street, London (John Lewis Partnership, 2013). As being the UK’s one of the leading department store retailer, John Lewis offers customers everything they need: fashions, furnishings and household goods of all kinds at competitive prices with excellent service and free delivery ( John Lewis Partnership, 2013). 2. Theory of Michael Porter’s competitive five forces model. The managers face such tasks as identifying analysing competitive forces. Michael Porter’s model known as five forces model helps managers with their analyses. His model focuses on such forces as the risk of entry by potential competitors, the new market entrants, and the bargaining power of customers, the bargaining power of suppliers, and the closeness of substitutes to an industry’s products. According to Charles Hill and Gareth R. Jones “the task facing managers is to recognise how changes in the five forces give rise to new opportunities and threats and to formulate appropriate strategic responses; In addition, it is possible for a company, through its choice of strategy, to alter the strength of one or more of the five forces to its advantage” (2009). 3. Concept of value chain analysis.

Value Chain Analysis describes activities of the competitive strength of the business. A company is a chain of activities that converting inputs into outputs that customers appreciate. So the value chain is about identifying which activities are best. Michael Porter suggested activities that add value to product could be grouped as primary activities and support activities. Primary activities are concerned with creating and delivering a product, while support activities are about increasing performance. 4. The role of information systems.

Nowadays most companies and organisations need information system because of the uncertainty of the future. The information system is a set of activities such as collecting, processing, storing and distributing information that helps to support decision making and controlling in an organisation (Ken Lauden and Jane Lauden, 2010). Application of the information systems allows companies to increase the accuracy, eliminate repetitive tasks, and integrate data from various sources for better performance. 5. John Lewis.

John Lewis’s main activities are providing customers with high quality groceries, electrical goods, furniture, fashion, flowers and also financial services such as insurance and credit card services. As being one of UK’s leading retailers, there are about “84,700 permanent staff who are Partners and who own 39 John Lewis shops across the UK (30 department stores and nine John Lewis at home), 291 Waitrose supermarkets, an online and catalogue business, a production unit and a farm. The business has annual gross sales of over £9.5bn. Partners share in the benefits and profits of a business that puts them first” (John Lewis Partnership, 2013). John Lewis Partnership claims about “visionary and successful way of doing business, boldly putting the happiness of Partners at the centre of everything it does” (John Lewis Partnership, 2013). By giving 100% ownership to partners who are also staff of the company, John Lewis aims to be different from their competitors “serving customers with flair and fairness” (John Lewis Partnership, 2013). Also, John Lewis was named 'Oracle Retailer of the Year' and 'The Brandbank Multichannel...

References: Arnold, G., 2012. Corporate financial management. 3d. ed.Essex: Prentice Hall.
BBC, 2012. Darling signals economic slowdown. 8 March 2012. Available at: [Accessed 10 April 2013]
Charles Hill and Gareth R. Jones, 2009. Strategic Management Theory: An Integrated Approach. 9th edition. Nelson Education, LTD. Printed in the United States of America.
Davey, J and Laurence, B, 2008. John Lewis under fire: how the City turned against Rose. The Sunday Times. 16 March 2008, p.12-13
Doyle, P., 2012. Marketing Management and Strategy 3d ed., Pearson Education.
Ken Laudon and Jane Lauden, 2010. Management Information System. 11th ed., Dorling Kindersley (India) Pvt. Ltd., licenses of Pearson Education in South Asia.
John Lewis Partnership, 2013. Available at: [Accessed 3 April 2013]
Julian Goldsmith, 2011. John Lewis 's IT director Paul Coby outlines IT strategy. Available at: [Accessed 5 April 2013]
Wilkes, D, 2007. Asda launches £35 tuxedo in attempt to sew-up formal attire market. The Daily Mail. 14 November 2007. Available at:  [Accessed 6 April 2013]
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