M&S Case Study

Topics: Strategic management, Competition, Marketing Pages: 3 (624 words) Published: February 7, 2013
Analyzing the competitive strategies of Marks and Spencer using Porter’s generic strategies framework

As stated by Andrew (2001), the Porter’s generic strategies framework assist the business to evaluate a competitive atmosphere. The five Porters force mainly deal with entry threat, power of buyers and suppliers, substitute’s threat, and competitive rivalry.

The threat of entry
According to Porter (1980), entry freedom into a new market is normally considered an indication of the extent of company’s competitiveness. Porter further states that the larger the barriers to entry, the less the threat of new companies moving into the market. Marks and Spencer individually can keep prices low strategically to minimize possible entrants into the market. This is called entry deterring pricing that establishes a barrier to other competitors. As stated by Anthony (1999), these barriers are unique characteristics of an industry that defines it. The barriers decrease the pace at which new firms enter the industry thus maintaining low profits levels for other companies.

The power of buyers
For Marks and Spencer to root to its customers, it has to emphasis on grassroots acquisition of customers so as to offer an enlarged bargaining power to them. Consumers can improve their bargaining power suppose the services or products of an organization are not affordable or are of low quality. The consumers an also have strong bargaining power suppose they purchase standard, undifferentiated goods from suppliers. The buyers will be weak if producers can over own retailing if the producers are not standardized and the buyer cannot switch to another product (Johnson and Scholes, 2002). The company has tried to minimize such cases for high competitive advantage. The company has also to find new delivery methods that will improve customer satisfaction.

Power of suppliers
According to Porters (1980), a supplier can have influence suppose the company works within...
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