Marks Spencer

Topics: Strategic management, Marketing, SWOT analysis Pages: 9 (1942 words) Published: November 21, 2014
This report critically analyses how the external and internal factors affect the strategies of M&S and modifies its business strategies. Even though M&S has good strategy and marketing plans they haven’t used it to their advantage. It also tells how the macro and micro environment affect their strategy and their plan. The report uses frame works like PESTEL, SWOT and porter 5 forces. It further investigates the strengths, weaknesses, opportunities and threats of M&S. This report highlights on M&S planning, organising, and taking decisions. It further incorporates the history, business operation, and the treats and opportunities faced by the company. It also provides an alternative solution and offers recommendation which might help the company to compete in the market, by providing appropriate service to its customer’s .The main aim of this report is to evaluate how M&S can survive in this ever changing market Introduction:

Marks and Spencer the Britain retailer (often referred to as Marks & Sparks by locals) is a general retailer that sells clothes, gifts, home furnishings, and foods under the brand name St. Michael in the UK, Europe, the Americas and Far East. The company also operates in the financial services segment.   Marks & Spencer was started in 1884 by Michael Marks in the Leeds market. The company strived for value and low prices and worked for its development. By 1901, the company acquired 35 outlets and had a new partner in Tom Spencer. The company’s stores started to carry the label (St. Michael) by 1949.  The company’s vision is to offer consumers great quality, value, and service. With nearly 300 stores in the United Kingdom, M&S is the country’s largest retailer and holds 17% of UK clothing market. The goods they have are perceived be of excellent value and quality. It has been seen that the company adheres to top-down management approach and watched under the close supervision of its former CEO. This was going good with the company for several decades, But latter part of the 1990s there was a noticeable decline in the sales and in the overall performance of the company. Strategic position

Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. As they operate in many segments like food cloths and home and beauty products they have to deal with a lot of competitors. M&S is very sensitive to technological, social and economic factors. It has to keep up with ever growing and changing trends of clothing if they have to compete in the market. The key drivers that affect M&S are changing trends and online purchasing as they have no control over it. The core values of M&S: quality, affordability and service were under the attack from its competitors. Other Retailers such as Top Shop, Next, Debenhams, Warehouse and the Gap provide the customers with better fashionable and trendier designs with good value. Food chains, such as Tesco, Waitrose, and Sainsbury have started to move into frozen foods and readymade food products. M&S has challenge from all the business segments it is competing. But M&S has not changed enough to be competitive; this resulted in M&S losing its profits and market share (M&S Press Releases 1999) Strategic clock:  Differentiation

    Perceived value
M&S is trying to gain market share and for them to regain its market share and dominance they need to invest. Currently M&S takes on the larger market share and is still suffering in its profits. This implies weakness in a rather cutthroat world of retail. Giving access to quality food and clothes to all is their vision. They are committed to understanding and meeting the customer’s needs consistently, in this ever competitive retail environment. M&S has 90% of its revenues from the UK (Mintel,2009) , Increased food and fuel prices has an impact on the disposable income of the consumers  which leads to weaker demand for non-food products, M&S...
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