Retrieved July 2016, from RetailWeek: http://www.retail-week.com/comment/comment-retailers-mustheed-marks-and-spencers-international-strength/5041479.article, Ruddick, G. (2013, October 24). Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/business/2016/05/22/the-week-ahead-in-business-and-finance/, Curtis, S. (2015, October 28). Losing access to the common market will affect supply chains, the free movement of people, IP rights, international contracts and more. Food sales accounted for 49.8% of its UK business and had a market share of 4.3%. M & S in the UK and other countries, more than 75,000 employees in the UK, currently has 622 stores in the international context, M&S is also actively developing business. Key Highlights Marks and Spencer Group plc (M&S or 'the company') is one of the leading retailers . II. Retrieved July 2016, from BBC: http://www.bbc.com/news/business-22104228, Brignall, M. (2016, January 5). Strategic Planning and SWOT Analysis. Whether the company is well enough prepared to preserve its spot as the leading food and clothing retailer in the UK market and abroad remains to be seen. Several shifts in the consumer market such as the increasing price sensitivity of customers seeking classical designs, increasing preference for fashionable items or the disloyalty of UK consumers to British products are increasingly affecting the retailer (Cunningham, 2016). In 1926, M&S in all major cities in United Kingdom has established a branch to become the UKs largest retailer. In 2015, food surpluses were allocated by working with redistribution partners through a Community Shop programme, whilst in 2016 a Spark Something Good campaign engaged 1000 employees in community work and charity action days (Marks & Spencer, 2016). Differentiation strategy is that the business through the characteristics production makes their product or service unique, and thus consumers are willing to pay a higher price. Retrieved July 2016, from Marketing Week: http://www.marketingweek.com/2015/07/15/marks-spencer-brand-perceptions-on-the-rise-as-it-israted-one-of-the-uks-top-brands/, Whitehead, T., & Foster, P. (2015, February 22). Continuous investment in the scheme has resulted in numerous Plan A products, a Plan A incubator for the development of sustainable products and services as well as the first UK ecofactory (European Commission, 2011). Compare Marks & Spencer to its competitors by revenue, employee growth and other metrics at Craft. The report presents an interesting business case and competitive analysis for M&S which illustrates that only an educated business strategy for implementing market segmentation, bolstering online presence and reducing reliance on UK market will help M&S overcome its present challenges and tread on a trajectory of growth and success. Further, clothing sales reached a ten-year low in Britain (Davey, 2016) and falling oil prices negatively impacted stores performance in the Middle East (M&S, 2016). Founded in 1884, the more than a hundred-year-old chain has long been a household name in the United Kingdom (and elsewhere! M&S can develop their website 2. M&S is changing the business strategy timely when market environmental change, while the continuous improvement on strategy goes along with the change of customer demands. Marks & Spencer plc is an iconic brand which has been trading since 1884 and is still considered one of the UKs top ten brands today (Vizard, 2015). However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors. Increasing terrorism attacks across Europe are also impacting consumer confidence and retail spending (Marks & Spencer, 2016). In response to this theme, Porter puts forward the analytical framework of Diamond System (also known as diamond theory). During the years of the financial crisis, the company continued its strong brand momentum by maintaining premium pricing and backing it through investments in advertising. Like many other retailers, Marks & Spencer has been hit hard by the pandemic but it is also dealing with years of missteps. But the retailer has gone from turnaround plan to turnaround plan since the turn of the millennium, and time is starting to run out. 4. Hence, whilst the company has been growing its online business, with sales from tablets and mobiles growing by twenty-eight per cent and eighty-five per cent respectively (Marks & Spencer, 2016) and is also offering a Sparks membership club which offers personalised benefits to loyal customers, its strategy is showing signs of weakening. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Click the button below to request a report when hardcopies become available. Molinero, CM, Bishop, H & Turner, M 2005, 'The distress of Marks & Spencer PLC in 2001: a multidimensional scaling analysis/Los problemas de Marks & Spencer PLC en el 2001: anlisis de escalamiento multidimensional', Cuadernos De Estudios Empresariales, . Abstract 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. (2015). The opportunities for any brand can include areas of improvement to increase its business. Marks & Spencer has achieved a paperless management, which ensures that all over the world Martha chain can continue to run in an orderly manner. For example, Tesco, ASDA, Sainsbury's, Morrisons, Next, Gap, Sports Direct, Debenhams, John Lewis and Amazon are some of the biggest competitors of Marks and Spencer. (2013, April 11). The experience of the old brand department store tells the world that they can create their own lands as long as the constant innovation even in a traditional industry. He thinks factors that may strengthen their national enterprises to create competitive advantages include factors of production, demand conditions, business strategy, structure and competitors, related industries and support for industry performance. With stricter environmental rules and regulations both at European and international level and increasing consumer pressure concerning business practices, major international retailers and brands have to examine the life cycle of its products from cradle to grave from the suppliers to end usage and disposal to be completely transparent about their strategic and tactical environmental practices and be fully accountable. The essay explains what the important parts of Marks and Spencer's (M & S) current and historic strategies are. The top 10 competitors average 5.7B. Marks and Spencer Group plc announced that Fiona Dawson has been appointed a member of the Remuneration Committee with immediate effect.. | January 17, 2023 . M&S Bank, which was started in 1985, recently (2014) launched a current account facility with no monthly fee and a 100 M&S gift card. Retrieved July 2016, from European Commission: http://ec.europa.eu/environment/ecoap/about-ecoinnovation/business-fundings/united-kingdom/488_en.htm. Heres how the Brexit Referendum is affecting the UK economy so far. In Marks & Spencer SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Looking for a flexible role? The company was too slow to close or move outlets to busier spots and did not invest enough in updating. It was founded in 1884. It is essential to study the internal and external environment in order to achieve a competitive advantage. Retrieved July 2016, from The Guardian: http://www.theguardian.com/money/2014/mar/07/marks-and-spencer-bankcurrent-account, Krish, M. (2012, January 19). 5. SWOT Analysis of Marks & Spencer evaluates the brand's strengths, weaknesses, opportunities, and threats. In J. Harrison, Essentials of Strategic Planning (pp. 10% most volatile stocks in GB Market. The company has its main presence in UK where it operates over 700 stores. Analysis. It is one of the most powerful retail brand with a top of the mind recall. As regards the companys food business, of the four big supermarkets in the British market Tesco, Asda, Sainsburys and Morrisons Tesco and Sainsburys have already developed a high quality range of foods which were previously considered a traditional market for M&S (Ruddick, 2013). M&S has struggled to adapt. The coronavirus has had a big impact on the retailer, but that cannot hide other shortcomings. And it has also characteristic of its own brand, types of goods is not exhaustive, but rather selective to provide customers with the best-selling inexpensive goods. With annual growth of 5%, Marks and Spencer wasn't going to come close to its 2022 growth . 1884, 21-year-old Michael Marcos in Kekegaite open-air market of United Kingdom Leeds City had opened a unique small stalls, which is the embryonic form of Marks and Spencer. He thinks factors that may strengthen their national enterprises to create competitive advantages include factors of production, demand conditions, business strategy, structure and competitors, related industries and support for industry performance. Specifically, in Q4 2018's revenue was $3.9B. Second is to determine the target market. A value chain analysis is a strategic tool use to identify the activities in and close to an organisation which lead to the creation of a product or a service. External Analysis of Company: Marks & Spencer is one of the recognized names in retail products and other aspects related to the organization have ensured a sound presence across the corners of the world. Having only decided on implementing a digital transformation strategy in 2010, the company has been a latecomer into the digital user-centred retail space. Online fashion retailer, ASOS, has been one of the companys main competitors in recent years (Davey, 2016). Strategic Business Analysis of Marks & Spencer. M&S is a listed company under the London Stock Exchange. M&S is a leading British retailer, headquartered in London. However, from 1998 to 2001, M&S operating profit had been on the decline. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360 view of the company. Marks and Spencer (M&S) is one of Britain's oldest and best known retailers of clothing, foods, home ware. Its external environment can be assessed in the following manner in light of Porter's Five Force Model: It belongs to products and services . Essay, 13 pages (3,512 words) Download PDF; DOCX; The business strategy of marks and spencer Subject: Others. This unique brand strategy makes its own brand has become endemic in the United Kingdom as part of shopping culture, while Marks & Spencer thus have unmatched brand equity. 3) Value Chain: Value Chain is an essential tool for analysis of source strengths. Second, it is to establish alliances among commercial enterprises, reducing procurement costs and jointly developing the market. Introduction 4. It is one of the pioneering and oldest retail chains in world and still a leading retail business entity in many country including UK and Middle East. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. After companies establishing their own unique brand image, they should make long-term planning to maintain its own brand image (Harry J.P., 2000). M&S being a global retailer means they are exposed to different political facts in countries they work in. In the 07 and 08 fiscal year, sales exceeded 90 billion pounds. Walmart Inc Headquarters. In its food sector, the company has introduced staff zoning across food halls and is increasing the number of staff in the store on an ongoing basis. There are future opportunities in expanding their brand into China & India. With the emergence of electronic commerce, M&S also creatively establish a website, combining traditional retailing with e-commerce. In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. Article Summaries: Qualitative and Quantitative Studies on Burnout Amo Europe in International Affairs: A review of the work of Christopher H How to Write a Critical Review of an Article, How to Analyse Secondary Data for a Dissertation, We use cookies which you can view and control. Over 80,000 employees form a part of the workforce globally. Poor online clothing M&S was slow to adopt online clothes shopping. M&S, currently operating in 59 territories across Europe, Asia and the Middle East via wholly owned retail businesses, retail joint ventures, retail franchise operations or websiteonly territories (Marks & Spencer, 2016) is developing particularly well in priority markets such as India, while its food business is growing in regions such as Hong Kong and Europe (Marks & Spencer, 2015). Recently it has utilised its customer loyalty data to organise targeted marketing and promotional activities and focus on high-impact promotions, which result in better value for customers and increased sales (Spencer, 2015). The 20th century, 80s, it began to lease satellite transmission, integrated global marketing data, the commodity management, logistics and distribution, global procurement and data processing of all applications of advanced modern information technology to significantly reduce the cost, annual savings of more than competitors) 750 million of dollars in spending. 5.4%. The retailing sector has a low threat of new entrants due to high capital investment costs needed to enter the market, market maturity and strong brands names which have gained customers loyalty. SWOT Analysis of Marks & Spencer evaluates the brand's strengths, weaknesses, opportunities, and threats. Outdated systems have forced stores to accept deliveries of clothing in sizes they didnt want, and were slow to update details of the amount of stock on the shop floor. 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