Does Marks & Spencer's Possess Any Mobility Barriers to Hinder Rivals Entering Its Competitive Domain?

Topics: Tesco, Asda, Morrisons Pages: 2 (532 words) Published: October 12, 2010
Marks & Spencer is an oligopolistic business because they have independent actions and decision making. They set prices according to how they feel is right. Marks & Spencer does possess some mobility barriers to hinder its competitive domain. In order for a business to enter the same market as Marks & Spencer they need to have a huge amount of capital which is difficult to get and current financial crisis has made even worse. Marks & Spencer has ensured that they produce high quality products and it is difficult for new businesses to meet that quality standard as they try to cut down of their average costs. Marks & Spencer have already existing competitors but it is difficult for new businesses to enter their competitive domain. Marks & Spencer is enjoying economies of scale and it would be very difficult for a new business to enter the same market and establish themselves as they will not be having this benefit. Marks & Spencer is a well recognized business that has made its name and there is a lot of brand loyalty. Marks & Spencer has established itself strongly which has created strong brand recognition that a new business would not be able to compete with and therefore would be unable to enter the competitive domain. The mass market for clothing is dominated by Marks & Spencer, with a 10.5% share of the overall clothing market. Therefore it would be impossible for a new business to enter the market. Marks & Spencer is a multinational company as they have 843 stores in more than 30 countries around the world. Therefore new businesses that just setup cannot enter Marks & Spencer’s competitive market domain. Their existing competitors in the clothes sector include; Zara, Bhs, Next, Bonmarche, G2000, Debenhams, Derry's, House of Fraser, Oasis, River Island, Cotton Traders and some more. Their existing competitors in home appliances include; John Lewis, Fenwick and a few others. Their existing competitors in food supplies include; Carrefour, Waitrose, Sainsbury,...
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