Marks & Spencer remains the UKs biggest seller of clothes, by value, but it has lost ground to rivals. Retrieved July 2016, from Reuters: http://uk.reuters.com/article/us-m-s-outlook-idUKKCN0ZN0EH. From a market positioning perspective, since the 20th century, 30 years, M&S makes middle-class as a sale object, and make every effort to provide them with quality-price ratio appropriate goods. At the end of 2015 the company had to temporarily shut down its website due to a security breach (Curtis, 2015) and in 2016, poorly integrated IT systems in the company are still being experienced. Like many other retailers, Marks & Spencer has been hit hard by the pandemic but it is also dealing with years of missteps. Standardization is Marks and Spencers consistent style, product quality, type and design of store layout, product display, and even the staff of the service program has a meticulous standard. Consequentially, the slight decline of sales and share prices in 2008 were followed by steady improvements in both these indicators a year later, thus escaping the hard to reverse grip of discounted prices felt by many other competitive retailers (The Marketing Society, 2010). (M$) MARKS AND SPENCER GROUP PLC: 18.33%: 3 . 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. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10647939/Marks-and-Spencerlaunches-new-website-to-replace-Amazon-platform.html, Vizard, S. (2015, July 15). Technology trends in fashion. Porters competitive strategy theories are mainly five force model, general strategies, value chain, diamond system and industrial clusters. 'Loyal' customers were departing to competitors like Next, Gap and Oasis for trendier clothing at lower prices. It is expected to launch a redeveloped Bradford National Distribution Centre in 2016 (Marks & Spencer, 2016). Threats in the SWOT analysis of Marks & Spencer. Porters model was designed and developed by Michael Porter in the 1980s to determine the competitive intensity and attractiveness of an industry (Spencer, 2015). However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. Successful examples adopting differentiation strategy are such as the United States Norton department stores, its different, nuanced human service has won praise from consumers, so that no rival can match. 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. This initiative has been largely praised and with its operating performance strong in 2015 (Marks & Spencer, 2016), is considered a threat to High Street banks (Jones, 2014). Annual Report and Financial Statements. Think Innovation: How were encouraging innovation across M&S. SWOT Analysis of Marks & Spencer evaluates the brand's strengths, weaknesses, opportunities, and threats. Our academic experts are ready and waiting to assist with any writing project you may have. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. The 133-year-old Marks & Spencer has been busy closing stores around the world and plans to close 53 wholly-owned stores . United States of America. Retrieved July 2016, from The Guardian: https://www.theguardian.com/money/2016/jan/05/ms-raises stakes-battle-current-accounts-marks-spencer, Butler, S. (2015, May 20). The former, once the flagship of the company, has suffered a considerable decrease in its market share over recent years and reached a ten-year low in terms of sales in the second quarter of 2016 (Davey, 2016). Health and safety regulations, consumer rights, environmental, antitrust and other legal factors affect the company. can be threats. London: Marks & Spencer Plc. Marks and Spencer Group PLC does not currently have any hardcopy reports on AnnualReports.com. In addition, the competitive retailing landscape is going through another major transformation the steady rise of online and catalogue shopping and competitors offering goods of almost the same quality at affordable prices as well as convenient and enhanced in-store experiences for customers (Retail Week, 2016). The company has traditionally invested in TV and magazine advertising as well as in-store visual merchandising. Multiple initiatives including adding new sub-brands such as Autograph and Per Una, attracting employees from rival companies as well as launching a website in 2014 have been introduced in an attempt to strengthen the clothing arm of the business and thus reverse a decade of market share decline in what was once considered the companys most profitable business (The Telegraph, 2014). Cost leadership strategy is to low operating costs or fees. It is associated with lifestyle and Retail since it operates in the retail sector. Abroad, it sells goods and services in more than 320 stores in over 40 countries. 2) Replacement threat. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! 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. First, it will introduce the history of M&S and different market segment in M&Sand have an overview of Porters models of competition. The week ahead in business and finance. Finally, it uses Porters global generic strategy to analysis M&S, to face the future social development, to further advantage, discussing how M&S attract different customers by using different strategy in the global environment. Marketing Excellence 2 . / The business strategy of marks and spencer. Marks & Spencer hired brand and marketing manager Sophie Jacobs to act as a "custodian" of its brand characters earlier this year, as it aims to make them bigger "than ever". Marks & Spencer Place & Distribution Strategy: Following is the distribution strategy in the Marks & Spencer marketing mix: Marks & Spencer is an international brand which has got more than 1000 stores operating in more than 50 countries. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360 view of the company. Porter believes that the intensity of competition in any industry is generally affected by five kinds of factors. 5.4%. 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. The companys core strategy should be to choose the right industry, as well as the industrys most attractive competitive position. This report will introduce the history of M&S and different market segment in M&S, and analysis how M&S can running there business in the competitive environment. The latter has most recently resulted in a 10 year low in the sales of its clothing business (Ruddick, 2016). Marks and Spencer will be in the form of time by phone to inform new members of the listing, the monthly will be in the form of a letter seeking the views of members. Because Marks & Spencer has become a very powerful organization in the retail world, new competitors find it very difficult to keep up with the quality of products and services that Marks & Spencer provide. It was founded in 1884. M&S reports worst clothing sales fall for a decade. Retrieved July 2016, from Pestleanalysis: http://pestleanalysis.com/category/pest-analysis/. . 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). SWOT Analysis Of Marks & Spencer is brand-based. Marks & Spencer is often referred to as the nation's favourite retailer. 3. Yet, these attempts have so far not resulted in a desirable outcome (BBC, 2013). 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. Revenue. Marks & Spencer plc is well-known for its 1,382 outlets throughout the world. M&S being a global retailer means they are exposed to different political facts in countries they work in. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. The country with the most number of Marks & Spencer locations in the UK is England, with 908 retail stores, which is about 86% of all Marks & Spencer retail stores in the UK. The Competitors analysis of Marks and Spencer Enters China looks at the direct and indirect competitors within the industry that it operates in. (2016). According to analysts, M&S has been favourably affected by the European Commissions free trade agreements which have made product imports much easier (EC, 2013) and have led to a decrease in sourcing costs. In the industries within which M&S operates, customers bargaining power is high. The geographical diversification inherent in the international strategy of M&S mitigates any potential risks of being overly exposed in a single country whilst its two-fold international business (food and clothing) is providing even more stability (BBC, 2013). Original reporting and incisive analysis, direct from the Guardian every morning. 1,059. M&S has invested in a multitude of sub-brands, in-store bakeries and an improved in-store customer experience, thus meeting the changing needs of its consumers (Marks & Spencer, 2016). M&S entered the market in the late 1880s with a 'no frills' strategy (Johnson G & Scholes K. 2002. pp320-323). Further developments in this regards can present opportunities for the company (Brignall, 2016). 10% least volatile stocks in GB Market. Guinness World Records reveals that volume of the companys flagship store in London MarbleArch is 3700 dollars per square foot. Following the appointment of Mark Bolland in 2010, the British retailer has accelerated a programme of making its supply chain more efficient by targeting $280 million in savings by 2020. After companies establishing their own unique brand image, they should make long-term planning to maintain its own brand image (Harry J.P., 2000). We're here to answer any questions you have about our services. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/jul/16/marks-spencersclothing-director-set-to-quit-after-sales-slip, Makos, J. The ensuing analysis aims to look at the strengths, weaknesses, opportunities and threats faced by M&S. 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. 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. 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