Marks and Spencer: A New Way to Compete
ONLINE FILE W1.1
MARKS & SPENCER-A NEW WAY TO COMPETE
The Problem
Marks & Spencer (marksandspencer.com) is a UK-base, upscale, global retailer known for its high-quality, high priced merchandise. Operating in more than 30 countries, the company faces stiff competition, especially since the beginning of the economic slowdown that started in 1999. Costumer service became a critical success factor for Marks & Spencer. Other critical success factors included an appropriate store inventory system and efficient supply chain activities. To attract shoppers, the company had to reduce prices at its stores, which drastically reduced profits. Several other big retailers were wrestling with similar problems, including Kmart, which had to file for bankruptcy. Will Marks & Spencer (M&S), a world-class retailer, be able to survive?
The Solution
M & S realized that in the digital era survival depends on the use of information technology in general and electronic commerce in particular. Electronic commerce (EC, e commerce) is a process of buying, selling, transferring, or exchanging products, services, and/or information via electronic networks and computers. M & S initiated several EC initiatives, including the following. Selling online. Like many other retailers, M & S sells some of its merchandise online. Shoppers can collect their merchandise in a “shopping basket”, pay online, and receive the merchandise the next day (in the UK). Online shoppers are encouraged to provide a UPC code in order to get the same product they see at a physical store, frequently at a lower price Security. A security system tracks transaction data in real time, looking for fraudulent events. If any fraudulent events are discovered, the system alerts the in-store security staff in the affected store by sending them a shot text message via cell phone. Warehouse Management. A mainframe-based warehouse management system, known as the Multi-User Warehouse System (MUWS), was
MARKS & SPENCER-A NEW WAY TO COMPETE
The Problem
Marks & Spencer (marksandspencer.com) is a UK-base, upscale, global retailer known for its high-quality, high priced merchandise. Operating in more than 30 countries, the company faces stiff competition, especially since the beginning of the economic slowdown that started in 1999. Costumer service became a critical success factor for Marks & Spencer. Other critical success factors included an appropriate store inventory system and efficient supply chain activities. To attract shoppers, the company had to reduce prices at its stores, which drastically reduced profits. Several other big retailers were wrestling with similar problems, including Kmart, which had to file for bankruptcy. Will Marks & Spencer (M&S), a world-class retailer, be able to survive?
The Solution
M & S realized that in the digital era survival depends on the use of information technology in general and electronic commerce in particular. Electronic commerce (EC, e commerce) is a process of buying, selling, transferring, or exchanging products, services, and/or information via electronic networks and computers. M & S initiated several EC initiatives, including the following. Selling online. Like many other retailers, M & S sells some of its merchandise online. Shoppers can collect their merchandise in a “shopping basket”, pay online, and receive the merchandise the next day (in the UK). Online shoppers are encouraged to provide a UPC code in order to get the same product they see at a physical store, frequently at a lower price Security. A security system tracks transaction data in real time, looking for fraudulent events. If any fraudulent events are discovered, the system alerts the in-store security staff in the affected store by sending them a shot text message via cell phone. Warehouse Management. A mainframe-based warehouse management system, known as the Multi-User Warehouse System (MUWS), was