M&S Strategy

Topics: Customer service, Customer relationship management, Customer Pages: 10 (2152 words) Published: April 28, 2013

Corporate Strategy Analysis: A Resource Based View3
Developing New Capabilities5
I.Mergers and Acquisitions6
II.Strategic Alliances6
III.Incubating Capabilities6
Current Strategies7
International strategy-why did they fial?8


Marks & Spencer Group is ranked 53 on the FTSE All-Share Index Ranking as at close on Tue, 4 December 2012. This essay explores how specific resources have influenced its strategies, and how M&S possess its resources and capabilities to establish competitive advantage. Also included a very brief analysis of its failure to enter the global market


The research resources focused primarily on M&S news releases, media articles and relevant academic papers.

The analysis is based on Porter’s Generic Value Chain (see Figure 1) to describe the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization.


Marks & Spencer is a major high street retailer in UK. Its product ranges from clothing, food products and household accessories etc. It entered the international market by franchising in countries include Canada, USA, France, Belgium, and Ireland etc. By the end of 19th century, the international market was on the verge of collapse due to improper management by the senior management of the company. Thus the company decided to withdraw its presence from the international market and instead concentrate only on the home market. (M&S company history, 2011)

Corporate Strategy Analysis: A Resource Based View

According to Grant’s representation of the resource based view, the firm is essentially a pool of resources and capabilities, and these resources and capabilities are the primary determinants of its strategy and performance. (Grant, 2005) Thus the key to achieve a competitive advantage over rivals is not keep focusing on the same as other firms, but rather exploit the uniqueness.

To do so, the firm must identify its recourses and capabilities by classifying and disaggregate its activities. Porter’s Generic Value Chain provides a resource-based viewpoint to identify a firm’s activities in two categories: Primary and Supportive.

Figure 1: Porter’s Generic Value Chain

Table 2 Identifies M&S’s capabilities pertaining to each activity. | |RESOURCES |CAPABILITIES | |SUPPORT | | | |Organization |Managerial judgments |Fewer layers of hierarchy (Collis & Montgomery, | | | |1995) | | | |Strategy innovation | |Human Resources |Employee loyalty, low labour turnover |Lower labour costs compared to industry average | |Technology |Multi-Channel data warehouse |Quickly responding to customer preferences | | |Financial Services unit |The ability to offer offers its customers credit | | |Electronic Data Interchange (EDI) with |cards, personal loans, life insurance, and savings, | | |suppliers |investment, and pension plans | |Purchasing |Close relationship with suppliers |Quality control was achieved by working closely with| | |...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • H&M STRATEGY Essay
  • Patagonia s Business Strategy Essay
  • M&S & Zara Company Essay
  • M&S Case Study Essay
  • M&S Csr Essay
  • M&S Case Study Essay
  • M&S Case Study Essay
  • M&S Business Models Essay

Become a StudyMode Member

Sign Up - It's Free