Business Strategies for Marks and Spencer
BUSINESS STRATEGIES FOR MARKS AND SPENCER
It is the world of huge competition where business needs to survive and exist. Actually Marks & Spencer lies within top 10. It is UK’s premier clothing, food, financial services retailer having the position of top 6. In recent years, retailers have been confronted with intense competition from their counterparts and, a few of them have somehow lost momentum. Marks & Spencer’s market share has dropped in 2004 to 11%, from 0.2% (Annual Report 2004). Mostly affected was their clothing segment. Mostly it is offering high price goods and service. It should reduce the price due to recession customers want to purchase goods in low price. The strategy applied by Marks & Spencer is covering wider market share only among the rich people so it should follow low cost competitive strategy. The development of strategy will help Marks & Spencer to grab market place and move to new market with market segmentation, penetration, development, integration and joint venture with different retailers and whole sellers in the world. It has the capacity to cover wider area with huge capital investment. As it has good position and market in Europe, in coming days it can move to Asian and Arabian countries of the world.
1.1. INTRODUCTION
The organization which I have selected for this assignment project is Marks & Spencer and I have got the information about it from its website (www.marksandspencer.com ). For this assignment, I am going to choose to carry out a PEST or PESTEL analysis on a UK based business and find out its position in the top 10 list of retail grocery chains. Marks & Spencer is the United Kingdom’s premier clothing, food, and financial services retailer. The company’s commitment to value, service and quality was set up in 1884 by Michael Marks; he opened a small market stall in Leeds. Then in 1894 he formed a partnership with Tom Spencer. They opened a head office in Manchester and turned their stall in Leeds to a covered arcade.
It is the world of huge competition where business needs to survive and exist. Actually Marks & Spencer lies within top 10. It is UK’s premier clothing, food, financial services retailer having the position of top 6. In recent years, retailers have been confronted with intense competition from their counterparts and, a few of them have somehow lost momentum. Marks & Spencer’s market share has dropped in 2004 to 11%, from 0.2% (Annual Report 2004). Mostly affected was their clothing segment. Mostly it is offering high price goods and service. It should reduce the price due to recession customers want to purchase goods in low price. The strategy applied by Marks & Spencer is covering wider market share only among the rich people so it should follow low cost competitive strategy. The development of strategy will help Marks & Spencer to grab market place and move to new market with market segmentation, penetration, development, integration and joint venture with different retailers and whole sellers in the world. It has the capacity to cover wider area with huge capital investment. As it has good position and market in Europe, in coming days it can move to Asian and Arabian countries of the world.
1.1. INTRODUCTION
The organization which I have selected for this assignment project is Marks & Spencer and I have got the information about it from its website (www.marksandspencer.com ). For this assignment, I am going to choose to carry out a PEST or PESTEL analysis on a UK based business and find out its position in the top 10 list of retail grocery chains. Marks & Spencer is the United Kingdom’s premier clothing, food, and financial services retailer. The company’s commitment to value, service and quality was set up in 1884 by Michael Marks; he opened a small market stall in Leeds. Then in 1894 he formed a partnership with Tom Spencer. They opened a head office in Manchester and turned their stall in Leeds to a covered arcade.