Marks and Spencer operates in different business sectors. Certain food chains such as Sainsbury and Tesco are marketing frozen food products and fast foods thus making it hard for Marks and Spencer to emerge successful in its business. The core strategy of M&S is quality, value, (function(){var g=this,h=function(b,d){var a=b.split(". In the recent past, certain changes have taken place thus making it necessary for the company to re-organize its strategy (Bevan, 2008). M&S sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. Marks & Spencer: Quality worth paying more for. Further investments are being made in GM IT systems and a logistics network with the aim of delivering better supply chain flexibility and customer availability. The decline of M&S post the 1990s was largely due to competitive retailers operating with foreign imports. Currently, the MNC markets a wide range of products such as clothes, food products, and house furnishings. Marks & Spencer plc is known through its 1,382 stores worldwide. Applying this strategy in M&S, they are not like traditional retailers, Marks & Spencer stores sell their products, whether they are clothing or food, all with their own brands, and use only one unified brand St. Michaels, that is, M&S does not provide consumers the opportunities with brand choices, consumers either afford to buy St. Michaels products or go to other stores to buy other brands. Modern technology is needed to promote the best practices for service delivery, product development, and customer satisfaction (Burns, 2008). April 22, 2019. https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. This strategic clock position is not pleasing. In recent years, the popular health, fast food, and coffee cultures are all based on young people. Essay on Coronavirus Disease 2019 (COVID 19) and Social Inequality in How to Write a Critical Review of an Article, How to Analyse Secondary Data for a Dissertation, We use cookies which you can view and control. For instance, some apparel companies such as Top Shop, Guess Company, and Hugo Boss continue to dominate the European Union (EU) market. Verdin, P & Heck, N 2009, From Local Champions to Global Masters, Cambridge University Press, Cambridge. M&S has undertaken a food-focused transformation as the new growth point in the retail industry is food. Therefore, M&S are the same price in St. Michaels products all over the country. They are often small and medium-sized enterprises, relying on convenient location or customer loyalty to survive. We will write a custom Report on Strategic Analysis of a Company and its Competitive Environment specifically for you for only $11.00 $9.35/page. Increasing terrorism attacks across Europe are also impacting consumer confidence and retail spending (Marks & Spencer, 2016). One thing about Marks and Spencer is that it relies mostly on local suppliers in the United Kingdom. The schematic diagram is shown below: Applicable to price-sensitive consumers, the product itself lacks differentiation. In its food sector, the company has introduced staff zoning across food halls and is increasing the number of staff in the store on an ongoing basis. The move resulted in a considerable decline in the bargaining power of its British suppliers (BBC, 2013) and, hence, the bargaining power of its supplier is currently low. Tesco is the last chosen competitor and It chooses to use cost leadership as their generic strategy. The needs of consumers are changing. Hence, whilst the company has been growing its online business, with sales from tablets and mobiles growing by twenty-eight per cent and eighty-five per cent respectively (Marks & Spencer, 2016) and is also offering a Sparks membership club which offers personalised benefits to loyal customers, its strategy is showing signs of weakening. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/jul/16/marks-spencersclothing-director-set-to-quit-after-sales-slip, Makos, J. Focused strategy refers to strategy in which a companys business activities are concentrated on a particular group of buyers, a certain part of a product line, or a regional market. (2021, Aug 31). At Marks and Spencer, the customer is no longer getting the best support and services (Seth & Randall, 2011, p. 87). Marks & Spencer. 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. "Strategic Analysis of a Company and its Competitive Environment." These companies continue to provide cheaper and quality products to the customers. As more companies continue to use the internet for marketing, Marks and Spencer continues to lose it customers. 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This part presents the companys external environment. Retrieved July 2016, from Marketing Week: http://www.marketingweek.com/2015/07/15/marks-spencer-brand-perceptions-on-the-rise-as-it-israted-one-of-the-uks-top-brands/, Whitehead, T., & Foster, P. (2015, February 22). Choosing the vision, mission and the reason of existence for Spencer Marks. Marks and Spencer (M&S) is a leading British Multinational Company with its headquarters in London. The premise for companies to adopt this business strategy is that no competitors provide similar products and services in the market. Web1. Spencer, J. 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. It also has its presence in over 40 nations globally. The new reporting regulations M&S adopted in 2014, including a summary of their remuneration framework (Marks & Spencer, 2015) aim to provide even greater transparency to its stakeholders. As well, the consumers are becoming aware and sensitive about quality and service delivery. Retrieved July 2016, from TaylorWessing: http://www.taylorwessing.com/download/article_fashiontech_trends.html, The Economist. (2015, February). 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. (2011, July 28). Your privacy is extremely important to us. Modern companies can use new technologies to improve their supply chain processes and provide the best customer support. M&S has multiple channel operations and allows customers flexibility in terms of order and delivery options, including online shopping. Marks & Spencer. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). In this section, the discussion would be on the following key points: Financial Resources Human Resources Company Image Learning and development Location This will create an affordable brand image and quickly accumulate customer loyalty. Differentiated strategy refers to a strategy adopted to make a difference between an enterprise product and a competitor product and to form a distinctive feature. Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. WebDeveloping strategies that can capitalize on Spencer Marks strengths and help mitigate weaknesses and impact of threats of macro-environment. Marks & Spencer profits jump for first time in four years. The food industry naturally has different changes from the past, which is mainly reflected in the dining place. WebMcDonalds is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. WebMarks and Spencer (M&S) p.l.c. The company should embrace modern technologies in order to widen its potentials and deliver quality to its customers (Verdin & Heck, 2009). In summary, M&S uses a differentiation strategy. 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. M&S strives to have distinctive features for its products. Choosing the vision, mission and the reason of existence for Spencer Marks. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/may/20/marks-spencer-profits-jump-mark-bolland, Cunningham, T. (2016, May). This is IvyPanda's free database of academic paper samples. Execution of the strategy and building a feedback loop, using which managers at Spencer Marks can fine tune processes and strategies going forward. In addition, in 2009 the company set annual recycling targets (Waste Management Word, 2010) and in 2012 achieved zero waste to landfill (Russell, 2012). An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. Sekhar, S 2009, Business Policy and Strategic Management, Wiley, New York. Fashion Retail 2016: The future of fashion retailing in a digital age. As they operate in many segments like food cloths and home and beauty products they have to deal with a The changing socio-cultural aspects in different countries affect many businesses today. London: Marks & Spencer Plc. Web1. The core strategy of M&S is quality, value, The companys new focus on providing customers with a superb experience including in the online sector on top of its High Street chains has enabled the growth of M&S.com in the last quarter of 2014 (Marks & Spencer, 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. Strategic Analysis of a Company and its Competitive Environment. Marks & Spencer is one of the largest retail chains in the world and its presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with the demands and expectations of valued customers. Marks and Spencer has established the best supply chain processes and strategies with its suppliers (Williamson & Jenkins, 2013). Unstable political and economic conditions in several international franchise markets in which the company operates such as the Middle East, Russia and Ukraine pose a threat to both franchise receivables and on the companys development in these areas (Marks & Spencer, 2015). 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. Marks & Spencer is one of the largest retail chains in the world and its presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with the demands and expectations of valued customers. Marks & Spencer is one of the largest retail chains in the world and its presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with the demands and expectations of valued customers. The company is facing serious macro- and microeconomic issues despite its strong brand, solid positioning in the food business, and ongoing innovation in the digital transformation of its operations as well as the implementation of Plan A, its social, environmental and ethical business strategy. The companys international expansion via franchise agreements gives it a strong competitive advantage compared with other UK businesses that trading only on the UK market (Rogers, 2012). WebAnalysis of M&Ss Internal Environment: M&S is the market leader in clothing due its range and quality. Keywords: M&S; Marks & Spencer; SWOT; PESTEL; Porters Five Forces; Strategy; Value Chain Analysis. It is the way for companies to move toward paradigm. Abroad, it sells goods and services in more than 320 stores in over 40 countries. Consequentially, the slight decline of sales and share prices in 2008 were followed by steady improvements in both these indicators a year later, thus escaping the hard to reverse grip of discounted prices felt by many other competitive retailers (The Marketing Society, 2010). Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. 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