Case Study on Marks and Spencer

Topics: Strategic management, Management, Marketing Pages: 9 (2956 words) Published: April 24, 2013
Marks and Spencer is one of the most prominent companies in UK in which they are well known for their greatness and quality. With years of experience in this field, they have had their share of struggles in both their internal and external environments. Since the 1980’s, it has been loyal to its strict traditions involving its processes and trading traditions which has been a benefit for them for a long time. At present Marks and Spencer stands out as one of the most recognizable names in the field of retailing. Dealing with a vast variety of products from apparels to foods, Marks and Spencer has proven itself as a leading retailer not only in the UK market but also in foreign markets as well. Based on a case study done by Collier (2004), it provides a few descriptions on the core of the company. Marks and Spencer is described as a company that adheres to top-down management approach compounded by the close supervision provided by its former CEO. This approach has proven successful for them for decades, however in the 1990’s a steady decline in sales not to mention the company’s overall performance concluded that a change was needed. In its time through the various changes in leaderships, Marks and Spencer seemed to have implemented many groundbreaking changes. The changes that the company embraced are reflected mainly on their company’s strategy as well as its operations but only to a certain extent. However Marks and Spencer’s core principles remained the same and they are offering a selective range of high-quality, well designed and attractive merchandise at reasonable price, encourage suppliers to use the most modern and efficient production technique, to work with the highest quality control, to provide friendly and helpful service to their customers, to improve the efficiency of the business and lastly to foster good human relations to its stakeholders. But overall the company has kept a closed eye on the ever-changing external environment as they were more keenly focused on their inner operations, this has allowed their competitors like Tesco and Sainsbury to gain an advantage against them. This study will be based on that phenomenon.

Porter’s five forces model (Porter, 1980)
This tool will be used as a framework to analyze Marks and Spencer in terms of business strategy development. Bargaining power of customers
Marks and Spencer is a UK based retailer which sells clothing, footwear, gifts, home furnishings and foods and they have a chain of stores in the United Kingdom. A customers bargaining power is a vital stature for Marks and Spencer whereby customer relationship is the main core of strategic move and the main function in the proper handling of success factors and other competencies. For example, the use of technology in the form of online catalogs helps Marks and Spencer achieve strong customer base by providing their customers with easy access to products and services like clothing lines and groceries. Marks and Spencer have also taken action with feedbacks that they get from their customer based promos and offers whereby strategic decisions shows a positive result in sales and profit. Threat of new entrants

Expansion of a retail establishment as well known as Marks and Spencer are done through allocation of resources through strategic base of global business and expansion. Marks and Spencer’s business strategy is open to relevant and significant changes that can bring forward options for stability as it has expanded its business outside the UK zone. RFID technology at Marks and Spencer has been done through research and development.

Competitive Rivalry
Competition is everywhere, it arises from time to time as such the image of Marks and Spencer has gained popularity over Sainsbury when it comes to international strategic base and achieve progress in the area of clothing lines such as menswear an d lingerie for women really surging up with Sainsbury in terms of other...
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