Thomas Spencer and Michael Marks established the company in 1884. Marks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. BBC. The approach will make it easier to address the changing needs of the modern customer. It is the way for companies to move toward paradigm. Companies can only rely on cost leadership strategies for mass production. In addition, in the past couple of months various macroeconomic issues, falling commodity prices, pound fluctuations and a sudden drop following the Brexit vote caused consumer confidence to drop. From raw material procurement, manufacturing, to sales, they strictly control the quality, allowing consumers to taste delicious food while taking care of nutrition and health. M&S raises the stakes in battle over current accounts. WebMarks & Spencer Competitors. & Walker, 2018). In addition, the competitive retailing landscape is going through another major transformation the steady rise of online and catalogue shopping and competitors offering goods of almost the same quality at affordable prices as well as convenient and enhanced in-store experiences for customers (Retail Week, 2016). They mainly using Cost Focus as their generic Strategies. Analyse PESTEL for Monitoring your Business or Organization. In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. Some of these include the food and apparel industries. (2015, May 20). (2011, July 28). However, in a highly competitive market environment, it is important for retailers to have operational management strategies to gain competitive advantage and achieve higher returns.
This does not conform to the principle of the same price same return. Marks and Spencer (M&S) has a tough and competitive external environment. It also has its presence in over 40 nations globally. There are current trends and issues affecting the food industry. Indeed, Asda became Britains secondbiggest clothing retailer by volume in the summer of 2014 (Butler, 2015). Having begun as a market stall, today it is considered to be one of the UKs leading multinational retailers with over 1,382 stores worldwide, including 468 stores in Eurasia and the Middle East. 
WebThe major success key of Marks & Spencer is that it offers superior quality and innovative products and services to its users with prime emphasis on innovation and design. More importantly, the constant innovation of technology has made consumers more and more demanding about the food experience. As a result, it helps increase the chance to sell the product and hence profit can be increased. Web1. WebDeveloping strategies that can capitalize on Spencer Marks strengths and help mitigate weaknesses and impact of threats of macro-environment. In 2016 the company has also become completely transparent about its supply chain by publishing a map of where the company sources its products (Marks & Spencer, 2015). Marks and Spencer Group (M & S) is an iconic and leading retailer of food, home ware and clothing items in the UK and worldwide.
It also has its presence in over 40 nations globally. It is one of the most representative chain stores in the UK and it currently has around 1463 branches over 57 countries as well. At the heart of this strategy is targeting a specific user group, a segment of a product line or a segment. Further, the company has decreased its former dependency on full-service vendors (FSVs) and provided more corporate control of its supply chain. Therefore, M&S are the same price in St. Michaels products all over the country. The companys international business, which comprises 468 wholly-owned, jointly-owned or franchised stores and spans 59 territories in Europe, Asia and the Middle East, had revenue of 1.1 billion in the last financial year (Marks & Spencer, 2016). They use to earn the profit by lower the cost of their different product in a different category. M&S reports worst clothing sales fall for a decade. While sales in the clothing branch of the company are falling M&S, has a strong hold in the food business with a successful specialist strategy leading to an increase in sales. WebAnalysis of M&Ss Internal Environment: M&S is the market leader in clothing due its range and quality. Sadler, I 2007, Logistics and Supply Chain Integration, Longman, London. The Ansoff Matrix identifies the best direction for a company. IvyPanda. Marks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. Keywords: M&S; Marks & Spencer; SWOT; PESTEL; Porters Five Forces; Strategy; Value Chain Analysis. M&S faces competition from both other retail stores, as well as from online retailers. M&S redesigns its products and marketing processes in order to achieve the best outcomes. In the UK market, M&S is a market leader in womenswear, menswear and lingerie. It also has its presence in over 40 nations globally. This explains why the company has a growing market share (Williamson & Jenkins, 2013). Marks & Spencer profits jump for first time in four years. No, Marks and Spencers food is not better quality. Retrieved from https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. Retrieved July 2016, from Monica Krish: https://monicakrish.wordpress.com/category/porter-five-forces-analysis-fortelecom-industry/, Macalister, T. (2015, July 16). However, post the 1990s M&S experienced a rapid decline in sales and was forced to outsource globally and work with overseas suppliers who offered much more competitive pricing. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10647939/Marks-and-Spencerlaunches-new-website-to-replace-Amazon-platform.html, Vizard, S. (2015, July 15). ":"&")+"url="+encodeURIComponent(b)),f.setRequestHeader("Content-Type","application/x-www-form-urlencoded"),f.send(a))}}},s=function(){var b={},d=document.getElementsByTagName("IMG");if(0==d.length)return{};var a=d[0];if(! With the same brand, you can achieve the same price. Williamson, D & Jenkins, W 2013. (2013, April 11). Two external factors that affect the retailer include changing values in the population and a generation shift with the Baby Boomer generation retiring, the company has to redirect its attention to Generation X and the Millennials. The company is required to worker harder in order to provide better products to its consumers (Bevan, 2008). The second is to pursue a cost-leading strategy and actively change the cost structure while maintaining perceived value and market share, such as Wal-Mart. M&S sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. They love new things and are willing to try new products. M&S redesigns its products and marketing processes in order to achieve the best outcomes. As well, different food chains and restaurants such as Wal-Mart, Tesco, and Sainsbury continue to provide affordable and quality food products to the consumers. Retail Week. Having begun as a market stall, today it is considered to be one of the UKs leading multinational retailers with over 1,382 stores worldwide, including 468 stores in Eurasia and the Middle East.
(2016). In addition, the recent Brexit vote is likely to have a substantial impact on the retailer in both its home stores and abroad. Should M&S give up on clothes and focus on food?
The premise for companies to adopt this business strategy is that no competitors provide similar products and services in the market. Seth, A & Randall, G 2011, The Grocers: The Rise and Rise of the Supermarkets Chains, Longman, London. (2019) 'Strategic Analysis of a Company and its Competitive Environment'. As they operate in many segments like food cloths and home and beauty products they have to deal with a In this section, the discussion would be on the following key points: Financial Resources Human Resources Company Image Learning and development Location However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. Bowman believes that these directions are too general, so the above framework is subdivided into eight strategies to create greater practical value. See below how Marks & Spencer compares to its competitors with CEO Rankings, Product & Services, NPS, Companies in the industry are required to embrace new technologies in order to emerge successful. Diversification will make it easier to provide quality products to the existing shareholders. Shop women's, men's, kids' and baby clothing, as well as homewares, all at Marks & Spencer US D5DE2692-4297-4238-91F2-7F95185A189B The 133-year-old Marks & Spencer has been busy closing stores around the world and plans to close 53 wholly-owned stores in 10 markets, including 10 in mainland China and 7 in France, as well as Hungary, Lithuania, Poland and Slovakia. 5. Firstly, in order to lower the cost of the food they are primarily selling, they are only selling frozen food only. Otherwise, competitors can easily gain market share and quickly weaken the position of companies adopting this strategy. Strategic Planning and SWOT Analysis. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Marks and Spencer (M&S) has a tough and competitive external environment. The company is slowly by slowly losing its market share and profitability (Tallman, 2010). WebMarks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. Marks & Spencer. M&S strives to have distinctive features for its products. One example is the lack of a charge on plastic carrier bags and how this is affecting the companys efforts to implement sustainability measures (Vaughan, 2012). The characteristics make customers feel that you provide more value than other competitors. WebMarks and Spencer (M&S) p.l.c. Even though the company still holds the first position in terms of sales by value, its 14 quarter slump preceding a one-off rise in sales in the first quarter in 2015 makes it likely that the company will be moving its focus from clothes to food (The Economist, 2015). https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/, IvyPanda.
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That being the case, the expectations and demands of the customers has been changing thus making it impossible for Marks and Spencer to remain competitive in its business environment. The core strategy of M&S is quality, value, As well, the consumers are becoming aware and sensitive about quality and service delivery. (2015). April 22, 2019. https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. Potential entrants would be discouraged by the strong loyalty of M&S customers, the companys strategy of focusing on quality products and a long-established and well-developed supply chain network (Vizard, 2015). The following two frameworks are used to analyse the strategic position of the M&S food unit. Strategic Business Analysis of Marks & Spencer. Marks and Spencer will be required to examine its practices and use environmentally friendly practices for marketing and production.
Retrieved July 2016, from The Guardian: https://www.theguardian.com/money/2016/jan/05/ms-raises stakes-battle-current-accounts-marks-spencer, Butler, S. (2015, May 20). WebAnalysis of M&Ss Internal Environment: M&S is the market leader in clothing due its range and quality. According to analysts, a steeper fall is expected in the coming years (Macalister, 2015). "),c=g;a[0]in c||!c.execScript||c.execScript("var "+a[0]);for(var e;a.length&&(e=a.shift());)a.length||void 0===d?c[e]?c=c[e]:c=c[e]={}:c[e]=d};var l=function(b){var d=b.length;if(0 This text is available online and is used for gudiance and inspiration. Modern companies can use new technologies to improve their supply chain processes and provide the best customer support. Having only decided on implementing a digital transformation strategy in 2010, the company has been a latecomer into the digital user-centred retail space. Retrieved July 2016, from Pestleanalysis: http://pestleanalysis.com/category/pest-analysis/. M&S Bank, which was started in 1985, recently (2014) launched a current account facility with no monthly fee and a 100 M&S gift card. The company should concentrate more on the younger generation because it has disposable income on tertiary goods such as clothes and fashion. The Marketing Society. 2. Thomas Spencer and Michael Marks established the company in 1884. An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. The region has the best political structure, tax system, and labour administration thus making the environment attractive. The companys legal environment and hence its legal department were paramount during the companys Simply Food chain expansion in 2007 and especially in allocating new store sites at BP petrol stations (Dry, 2007). Verdin, P & Heck, N 2009, From Local Champions to Global Masters, Cambridge University Press, Cambridge. Technology trends in fashion. PESTEL Analysis makes it easier to measure the organization potential according to the major environmental factors (Verdin & Heck, 2009). To achieve differentiated marketing, the marketing strategy is mainly based on the following four aspects: first, to understand the composition of the customer base; second, to understand the needs of the customer base; third, to promote effective sales; fourth, to provide customers with unique shopping service. Continuous investment in the scheme has resulted in numerous Plan A products, a Plan A incubator for the development of sustainable products and services as well as the first UK ecofactory (European Commission, 2011). M&S has a competitive advantage because it is a unique store that offers a wide range of products and services. Marks & Spencer launches new website to replace Amazon platform. Marks & Spencer plc is an iconic brand which has been trading since 1884 and is still considered one of the UKs top ten brands today (Vizard, 2015). M&S redesigns its products and marketing processes in order to achieve the best outcomes. It also brings great trouble to consumers when choosing a brand, that is, in the face of different trademarks, it will instead make consumers embarrassed and at a loss. Retailing 2015: New Frontiers. As regards its clothing business, the threat of substitutes is high copying or imitating existing designs is becoming ever easier. This means it operates in a stable political environment. Next, to identify the strategic position of Marks and Spencer in the competitive environment, focusing on the food rather than evaluating the whole company and analysing their competitive advantage they have in food industry. For instance, the company does not provide loyalty cards and gifts to its customers. This explains why the consumers trust the companys products and services based on their quality and value. WebDeveloping strategies that can capitalize on Spencer Marks strengths and help mitigate weaknesses and impact of threats of macro-environment. K, 2018) The core of this strategy is to achieve something unique that is valuable to customers. As more companies continue to use the internet for marketing, Marks and Spencer continues to lose it customers. Retrieved July 2016, from The Guardian: http://www.theguardian.com/money/2014/mar/07/marks-and-spencer-bankcurrent-account, Krish, M. (2012, January 19). WebINTRODUCTION. Need a custom Report sample written from scratch by However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. All shops in Romania, the Netherlands, Belgium and Estonia (Scott. This explains why M&S should work hard in order to cope with these changing trends in the market. The company has traditionally invested in TV and magazine advertising as well as in-store visual merchandising. Managing Organizational Change by Graetz, F., Rimmer, M., Lawrence, A. and Smith, A. Apple Inc Market Entry Audit: The Entry of Apple Inc Into a New Market With an Existing Product or Service. As well, it should examine other aspects such as mortality rates, cultural changes, and consumer expectations. The company has closed its smaller regional warehouses and in 2010 it opened a super warehouse in Bradford. Abroad, it sells goods and services in more than 320 stores in over 40 countries. Yet, these attempts have so far not resulted in a desirable outcome (BBC, 2013). It explores the unique challenges and issues for an organisation to address in order to become successful (Verdin & Heck, 2009, p. 86). For M&S to succeed in its business, it needs to be aware of the changing trends in its environment. Beginning in the 1990s and more recently as a result of the recession in 2009, the company has faced both a decrease in sales as well as increasing competition from online retailers, discounters, fast fashion brands and others in both its clothing and food businesses. In J. Harrison, Essentials of Strategic Planning (pp. Marks & Spencer ranks 1st in Customer Service Score on Comparably vs its competitors. Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. Copyright 2023 - IvyPanda is operated by, Continuing to use IvyPanda you agree to our, Strategic Analysis of a Company and its Competitive Environment, United Arab Emirates Public Library and Cultural Center Risk Management Plan, Marks and Spencer: Standard to Which Other Companies Look to, Marks and Spencer (M&S): Aspects Analysis, Marks & Spencer Company: Internationalisation Strategies, Marks & Spencer Company's Strategic Planning. In addition, Porters Five Forces Analysis discusses the industrys competitiveness and the firms competitive positioning in the marketplace. London: Routledge. Marks & Spencer competitors include Volvo IT, Tesco Corporation, PACCAR, MS Global Inc and Phoenix Technology Services. By continuing well assume youre on board with our, https://samploon.com/marks-and-spencer-food-strategies-analysis/, Select a writer from a large pool of experts. However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. In order to promote sales growth, companies need to work harder in terms of youthfulness, personalization, and service. What kind of environment does Marks and Spencer have? WebThe competitive environment of Marks and Spencer (M&S) has a direct effect on the pricing and promotional decisions of the business. One thing about Marks and Spencer is that it relies mostly on local suppliers in the United Kingdom. At the other end, fashion brands such as Zara, H&M, Gap and Next are targeting younger, fashion-oriented clientele with their latest fashions and affordable prices. The company has the best business practices and financial strengths. At the end of 2015 the company had to temporarily shut down its website due to a security breach (Curtis, 2015) and in 2016, poorly integrated IT systems in the company are still being experienced. How about receiving a customized one? At the lower end of the market, under the umbrella of ASDA, brands such as George and Matalan are targeting previously loyal M&S customers with lower prices. Compared to low-cost strategies, such as Wal-Mart, products that are low-priced and low-intuitive are inferior goods with no names on the shelves. April 22, 2019. https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. Threat of new entrants (barriers to entry). (2014, February 18). You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Today, M&S has over 700 shopping outlets in the United Kingdom. WebThe major success key of Marks & Spencer is that it offers superior quality and innovative products and services to its users with prime emphasis on innovation and design. 2019. The company does not consider the expectations of its customers. The company is currently expanding its business to different countries and cities. Heres how the Brexit Referendum is affecting the UK economy so far. 22 April. The changing socio-cultural aspects in different countries affect many businesses today. The company which is currently 132 years old has built its image on offering a quality value-formoney products strategy has recently started refocusing on a low cost strategy for its clothing business. Spencer, J. In 2015, this strategy helped the company maintain its market share in most of its markets and achieve strong sales in key owned markets such as Hong Kong or India (Marks & Spencer, 2015). A PESTEL analysis provides a framework to investigate a companys non-controllable external factors that have the potential to affect its operations. Strategic Analysis of a Company and its Competitive Environment. The company, eponymous with its environmental and ethical Plan A green strategy, has also been critical of the lack of clarity in the governments flagship energy efficiency scheme, the green deal, as well as in its shifting green measures legislation. The companys food and clothing and homewear stores are often located in locations that are attractive as targets for terrorists due to the large footfall and whilst there has been an increase in safety measures, the latter can also alienate customers if, for example, screening or security measures are implemented (Whitehead & Foster, 2015). Marks and Spencer (M&S) has a tough and competitive external environment. Marks and Spencer (M&S) is a leading British Multinational Company with its headquarters in London. Marks & Spencer takes on banks with new current account. & Walker, 2018). This will not only result in the company having to invest in the recruitment, hiring and training of new employees, but also in the company facing the risk of its show how, know-how and contacts (related to current or potential contracts and business) becoming readily available to competitors (Davey, 2016). The decline in sales lead to the head of the clothing branch of the company, John Dixon, leaving the company in July 2015 (Macalister, 2015). Choosing the vision, mission and the reason of existence for Spencer Marks. Marks and Spencer Group (M & S) is an iconic and leading retailer of food, home ware and clothing items in the UK and worldwide. The decision will require new VAT rules as opposed to the VAT zero rating for intra-EU purchases and import duties and tariffs will be imposed (Dentons, 2016). The company can also be committed to serving a particular market segment, a particular product category or a specific geographic area. This analysis explores the current position of Marks and Spencer. Successful implementation requires different resources and skills. A shift from a strong focus on products to a more consumer-focussed strategy has benefited the company. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). Leadership in clothing converted M&S into market leader in department stores. As a result, there is only one brand for customers to choose for all the products which they sell. Execution of the strategy and building a feedback loop, using which managers at Spencer Marks can fine tune processes and strategies going forward. At present, consumers pay more attention to the experience, and often integrate other leisure activities. The above assessment indicates that Marks and Spencer has some strengths and weaknesses. Marketing Excellence 2 . This is the only way for the company to remain successful. At Marks and Spencer, the marketing strategy does not embrace new ideas and changes (Verdin & Heck, 2009). For example, M&S uses powerful adverts and stories to capture the emotions of many potential buyers ( Marks & Spencer 2015). Marks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. As regards the companys food business, of the four big supermarkets in the British market Tesco, Asda, Sainsburys and Morrisons Tesco and Sainsburys have already developed a high quality range of foods which were previously considered a traditional market for M&S (Ruddick, 2013). Weakened consumer confidence and a decrease in the buying power of the pound have already had an impact on sales growth, whilst the decision is expected to affect the retailer in various other ways in future years. M&S sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. According to analysts, M&S has been favourably affected by the European Commissions free trade agreements which have made product imports much easier (EC, 2013) and have led to a decrease in sourcing costs. WebExecutive summary. See below how Marks & Spencer compares to its competitors with CEO Rankings, Product & Services, NPS, PWC. is one of the largest retailers in the United Kingdom with a selling space of 12.5 million square feet, was established in 1884 as Penny bazaar. In this section, the discussion would be on the following key points: Financial Resources Human Resources Company Image Learning and development Location 
Marks and Spencer (M&S) is a leading British Multinational Company with its headquarters in London. In the case of M&S, the five forces that influence the industry are as follows: 1. Would you like to get a custom essay? M&S is one of the leading UK retailers of food, clothing and homewear with 1382 stores all over the world. During the financial crisis of 2008, while competitors such as Aldi, Asos or Tesco followed a strategy of discounted pricing, M&S emphasised higher quality products and better consumer satisfaction (The Marketing Society, 2010). professional specifically for you? Marks & Spencer plc is known through its 1,382 stores worldwide. Your privacy is extremely important to us.