From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. For this, PESTLE, SWOT Analysis should be done along with competitors matrix, Boston consulting matrix and Ans-off matrix. 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. Subscriber Exclusive Subscriber Exclusive We will be discussing Marks & Spencer's SWOT Analysis. (2014, September 1). 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). Quizzes test your expertise in business and Skill tests evaluate your management traits. 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. Becoming unfashionable M&S remains the UKs biggest seller of clothes by value, but it has lost ground because it has failed to find a price and fashion formula to compete with rivals like Primark, Zara and new online labels like Hush. Retrieved July 2016, from Fortune: http://fortune.com/2016/07/11/brexit-referendum-uk-economy/, Rogers, T. (2012, October 4). Marketing Excellence 2 . 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). Marks & Spencer is one of the largest retail chains in the UK . Our academic experts are ready and waiting to assist with any writing project you may have. 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. Products of Marks & Spencer (M&S) To face the future social development, to further advantage, M & S should be good at using the Porters competitive theory, adopting strategy and measures suited to the situation on their own (Dinesh, 2008; S. Ambec, 2002). M&S offers clothing, home products and luxury food products both in store and online (Marks &Spencer, 2015). 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. Too many shops: M&S is closing a third of its 300 high . Valuable - Is the resource valuable to Spencer Marks. 10% most volatile stocks in GB Market. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. At the lower end of the market, under the umbrella of ASDA, brands such as George and Matalan are targeting previously loyal M&S customers with lower prices. The company is losing key employees to its main competitors, including product developers, food technologists and General Merchandise design team members. The company had been in its business for more than hundred years and has the biggest market capitalisation in the retail industry. Enter for a chance to WIN a signed copy of Holly Willoughby's new book, 'Reflections', or an exclusive personalised video message from England Rugby star, Maro Itoje! Technical analysis trends MARKS AND SPENCER GROUP PLC. At present, 80% of M&S operating goods have the brand of St. M&S News See all articles Today 5:36 AM Some of the threats include: Competition: The main competitors of Marks & Spencer are Uniqlo, Gap, Tommy Hilfiger, Zara, and United Colors of Benetton. Retrieved July 2016, from The Economist: http://www.economist.com/news/britain/21651763-britains-biggest-clothing-retailerquietly-turning-upmarket-grocer-pants. Technology trends in fashion. However, weaker consumer confidence following the Brexit vote (Reuters, 2016) is likely to affect sales growth and result in the company cutting its prices and focussing on its consumer needs. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). 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). The company targets same C1 category customers. Marks and Spencer (M&S) is one of Britain's oldest and best known retailers of clothing, foods, home ware. The article below lists the Marks & Spencer SWOT, competitors and includes its target market, segmentation, positioning & USP. 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. Through the above analysis, M&S has made a great progress, getting over lots of difficulties. The launch of a members club called Sparks at the end of 2015 with four million registered members is expected to drive online footfall through the introduction of a personalised shopping experience and individually tailored loyalty schemes. Some operation management theories are applied in the process of analysis. The company has traditionally invested in TV and magazine advertising as well as in-store visual merchandising. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/may/20/marks-spencer-profits-jump-mark-bolland, Cunningham, T. (2016, May). (2015). 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. The availability of these stores and accessibility are also . Marks & Spencer. Finally, it will use Porters global generic strategy to analysis M&S, discussing how M&S attract different customers by using different strategy in the global environment. The companys core strategy should be to choose the right industry, as well as the industrys most attractive competitive position. However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors. The companys 914 UK stores 222 owned and 349 franchises of Simply Food stores as well as the 302 full-line clothing and home stores and an e-commerce platform with over seven million registered users serve 33 million customers in two divisions (food and general merchandise) with a revenue of 5.2 billion and 4.0 billion respectively. In 2016 the company has also become completely transparent about its supply chain by publishing a map of where the company sources its products (Marks & Spencer, 2015). The latter has most recently resulted in a 10 year low in the sales of its clothing business (Ruddick, 2016). In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. Weakened consumer confidence and a decrease in the buying power of the pound have already had an impact on sales growth, whilst the decision is expected to affect the retailer in various other ways in future years. Beginning in the 1990s and more recently as a result of the recession in 2009, the company has faced both a decrease in sales as well as increasing competition from online retailers, discounters, fast fashion brands and others in both its clothing and food businesses. Third, accounting for the characteristics of the target market, it is to develop practical sales strategy, including determining the number of sales outlets, choice of a commodity business scope, pricing strategies. Competition: Very high: the levels of competition in the apparel, food, . London: Marks & Spencer Plc. In addition, the company experienced technical difficulties and privacy breaches on its website when introducing their members club and card scheme at the end of 2015, leading to a temporary website shutdown (Curtis, 2015). Porters 5 forces analysis Global Telecom Industry. Yet, these attempts have so far not resulted in a desirable outcome (BBC, 2013). Retrieved July 2016, from Reuters: http://uk.reuters.com/article/us-m-s-outlook-idUKKCN0ZN0EH. PWC. In this study, strategic analysis is done on Marks and Spencer. (2016, July 11). When compared with the 26 weeks to 28 September 2019, M&S found in the half-year to the 2 October 2021 that while overall clothing and home sales were down 1%, online sales for the category were up. This involves a detailed analysis of their actions and how these would affect the future strategies of Marks and Spencer Enters China. The companys food business is being rivalled by supermarkets such as Tesco, Sainsburys and Asda, and it is competing with clothing and homewear retailers such as Topshop, Zara and John Lewis (Retail Week, 2016). (2016, July 7). For customers to eat well and well dressed has always been motto of M&S, which is also main historical reason for 100 years of food and clothing at the same time. . Third, long-term to maintain brand image. Strong competition from other retail brands means limited market share, 2. 1884 thus celebrating its heritage (Swift, 2014). In the case of M&S, the five forces that influence the industry are as follows: 1. However, in 20142015 the company experienced difficulties in marrying its online operations and distribution from its Castle Donington centre. The company's food business is being rivalled by supermarkets such as Tesco, Sainsbury's and Asda, and it is competing with clothing and homewear retailers such as Topshop, Zara and John Lewis (Retail Week, 2016). Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. SWOT Analysis is a proven management framework which enables a brand like Marks & Spencer to benchmark its business & performance as compared to the competitors. Two external factors that affect the retailer include changing values in the population and a generation shift with the Baby Boomer generation retiring, the company has to redirect its attention to Generation X and the Millennials. Marks & Spencer Foods is a 100% private brand. Two trends the retailer should take into consideration are the different generations customer preferences for fashionable items and/or the growing perception that British produce is no longer considered to be of high quality (Experian, 2015). Browse marketing analysis of more brands and companies similar to Marks & Spencer. M&S in such a competitive market environment also pursues their usual high quality of goods and services, and provide an elegant display of the environment. 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. Commercial retail enterprises can be achieved through the following areas cost leadership (Voss, 2003). Add to Library Added to Library Add to Library Remove. Access in-depth analysis, premium industry data, predictive signals, . The company, eponymous with its environmental and ethical Plan A green strategy, has also been critical of the lack of clarity in the governments flagship energy efficiency scheme, the green deal, as well as in its shifting green measures legislation. The decline in sales lead to the head of the clothing branch of the company, John Dixon, leaving the company in July 2015 (Macalister, 2015). 0 1 0. Select the target build-up strategy, first, to conduct market research and market segmentation. Oxford: Oxford University Press. 1) Five Forces model provides a very useful analytical framework to study the competitiveness of industry, competition in the corresponding morphology and how to design a strategy. Marks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The renowned company was established in 1884 by the founding partners Thomas Spencer and Sir Michael Marks. Founded in 1884, the more than a hundred-year-old chain has long been a household name in the United Kingdom (and elsewhere! Short Term: Mid-Term: Long Term: Trends: Bullish: Bullish: Neutral: . Marks & Spencer SWOT Analysis & Matrix provide insight into strategy,internal & external factors.Buy custom Marks & Spencer swot analysis $11.Strengths,Weakness Opportunities Threats. Competitor comparison. 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). 3. Marks & Spencer to cut 7,000 jobs over three months. Marks & Spencer plc is known through its 1,382 stores worldwide. M&S has multiple channel operations and allows customers flexibility in terms of order and delivery options, including online shopping. 2,300,000. The difference amongst the gross profit alone is a colossal 700%, with the . First, they can through cost analysis identify the greatest impact factors on the business cost, controlling systematically cost. All work is written to order. A general overview of Marks & Spencer is followed by a PESTEL analysis which offers a comprehensive look at the companys strategic business environment. Below are the Strengths in the SWOT Analysis of Marks & Spencer : 1. It is expected to launch a redeveloped Bradford National Distribution Centre in 2016 (Marks & Spencer, 2016). Because it takes a specific consumer group focused to meet their needs, so companies can be more economical than the other competitors, more thoughtful to meet their needs (Mittal, 2004). The ensuing analysis aims to look at the strengths, weaknesses, opportunities and threats faced by M&S. Porters model was designed and developed by Michael Porter in the 1980s to determine the competitive intensity and attractiveness of an industry (Spencer, 2015). Marks and Spencer Marketing Mix: Marks and Spencer, commonly called M&S, is a public limited company of British origin. It is essential to study the internal and external environment in order to achieve a competitive advantage. Marks and Spencer Group plc - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. 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. The companys international expansion via franchise agreements gives it a strong competitive advantage compared with other UK businesses that trading only on the UK market (Rogers, 2012). 2. of employees. M&S Quarterly and Annual Revenue Trailing 12-Months Trend (TTM) Annual Revenue $14.3B M&S's revenue is the ranked 3rd among it's top 10 competitors. Heres how the Brexit Referendum is affecting the UK economy so far. 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