1 Introduction

The purpose of this report is to look at the John Lewis partnership as a whole and using factors such as a SWAT analysis attempt to recognise what the business does well and where the threats may derive from. An analysis of Porters Strategic fit will also help to lead to both recommendations and conclusions upon what the business does well and on what it needs to do better or expand into in order to become more successful.

2 PESTEL Analysis and Porters Five Forces

Both the PESTEL Analysis and the summary of Porters Five Forces can be found in the Appendix.

3 SWOT Analysis

3.1Strengths

The first strength of John Lewis is that it is built upon its reputation for high quality goods backed up by an excellent customer service. Since the 1920’s the company has been renowned for its relaxed shopping atmosphere for the slightly higher demographic consumer. The business itself is a partnership meaning that everybody has an equal share of the company profits. Furthermore this means that there are no large shareholders making corporate decisions without some level of consultation, producing a more thought out course of action. Once an individual is employed under the John Lewis name they receive a voice in the running of the company, can suggest ideas for future development and take their partnership income at the end of each financial year.

This idea now expands onto John Lewis economical impact with John Lewis making numerous large charitable donations each month, funding projects from a local level right through to trying to solve poverty in Africa. Giving the consumer the perception of a business that John Lewis is an ethical business, this company image can be highly important to the business in the future. The business also goes out of its way to reduce its environmental impact, by using two level lorries in order to carry twice as much in a single journey. John Lewis has also started to make use of E-Business, which cuts down costs dramatically as there is no need for a department store as all products come from the warehouse, as well as reducing levels of staff therefore expansion into this area may prove an option in the future.

3.2 Weaknesses

One potential weakness John Lewis now faces is due to its choice of cutting costs in its department stores and Introducing a “basics” line into its Waitrose arm of the business. Consumers remain loyal to John Lewis because of their “never knowingly undersold” policy, that being although their prices may be higher than competitors, they can provide the better quality service. By introducing budget lines however, this consumer Loyalty is being put to the test as John Lewis loose the one thing that sets them out from the rest of the market, product different