Marks & Spencer Case Study
Marks & Spencer
Case Study
Introduction........................................................................ Page 3
EXTERNAL ENVIRONMENT
1.0 PEST Analysis................................................................ Page 3
2.0 Porters Five Forces Model................................................. Page 4
INTERNAL ANALYSIS
3.0 Auditing the Resources of M&S.......................................... Page 5
4.0 Value Chain Analysis....................................................... Page 8
5.0 Analysing the Culture & Stakeholders in 1998 ....................... Page 11
6.0 Evaluation of M&S´ Strategy............................................. Page 15
6.1 SWOT Analysis..................................................... Page 16
7.0 Recommendations for future Strategies................................. Page 19
Introduction
Marks & Spencer p.l.c. is one of the most recognizable clothing retailers in the UK. The company´s stores also sell food and homeware and provide financial services. M&S has enjoyed a consistent record of success and profitability since its origins, with a worldwide reputation for its innovative, high quality products and competitive prices. However, M&S´ prestige and outstanding long-term performance have been hit in recent years by falling sales and declining customer satisfaction. The aim of this report is to identify the key factors that allowed M&S to outperform its competitors up to the mid 1990s. This assignment also explores the reasons behind M&S´ recent crisis and it suggests a number of strategies to regain competitive advantage and to deal with the challenges M&S faces, currently and into the future.
Question 1
Identify M&S´resources and capabilities up to the mid 1990s and hence the sources of competitive advantage
We can use two different approaches to identify the main drivers of M&S´ success up to the mid 1990s, as well as its recent crisis. A well-known approach is to examine the external environment in
Case Study
Introduction........................................................................ Page 3
EXTERNAL ENVIRONMENT
1.0 PEST Analysis................................................................ Page 3
2.0 Porters Five Forces Model................................................. Page 4
INTERNAL ANALYSIS
3.0 Auditing the Resources of M&S.......................................... Page 5
4.0 Value Chain Analysis....................................................... Page 8
5.0 Analysing the Culture & Stakeholders in 1998 ....................... Page 11
6.0 Evaluation of M&S´ Strategy............................................. Page 15
6.1 SWOT Analysis..................................................... Page 16
7.0 Recommendations for future Strategies................................. Page 19
Introduction
Marks & Spencer p.l.c. is one of the most recognizable clothing retailers in the UK. The company´s stores also sell food and homeware and provide financial services. M&S has enjoyed a consistent record of success and profitability since its origins, with a worldwide reputation for its innovative, high quality products and competitive prices. However, M&S´ prestige and outstanding long-term performance have been hit in recent years by falling sales and declining customer satisfaction. The aim of this report is to identify the key factors that allowed M&S to outperform its competitors up to the mid 1990s. This assignment also explores the reasons behind M&S´ recent crisis and it suggests a number of strategies to regain competitive advantage and to deal with the challenges M&S faces, currently and into the future.
Question 1
Identify M&S´resources and capabilities up to the mid 1990s and hence the sources of competitive advantage
We can use two different approaches to identify the main drivers of M&S´ success up to the mid 1990s, as well as its recent crisis. A well-known approach is to examine the external environment in