marks and spencer competitive environment

Plan A, the companys social, ethical and environmental business commitments, have also helped the retailer build a strong brand positioning centred on responsible sourcing, waste reduction and community care (Marks & Spencer, 2016). The company has been moving away from its leading values.

Differentiated strategy refers to a strategy adopted to make a difference between an enterprise product and a competitor product and to form a distinctive feature. IvyPanda. Finally, it will take three competitor companies and brief rationale for the positions of them. Further developments in this regards can present opportunities for the company (Brignall, 2016). M&S offers clothing, home products and luxury food products both in store and online (Marks &Spencer, 2015).

In addition, in the past couple of months various macroeconomic issues, falling commodity prices, pound fluctuations and a sudden drop following the Brexit vote caused consumer confidence to drop. Reuters. (2013, April 11). M&S has a competitive advantage because it is a unique store that offers a wide range of products and services. Shop women's, men's, kids' and baby clothing, as well as homewares, all at Marks & Spencer US D5DE2692-4297-4238-91F2-7F95185A189B The company has the best business practices and financial strengths. The company is today operating in a competitive environment. Some of these include the food and apparel industries. It is agreeable that the company is facing numerous threats from its buyers. The approach will make it easier to address the changing needs of the modern customer. With the launch of the companys Plan A in 2007 and having won the GBS supply chain award for implementing a truly disruptive supply chain (Purt, 2012) the company is ahead of its competition as regards the social and environmental impact of its business. Bowman believes that these directions are too general, so the above framework is subdivided into eight strategies to create greater practical value. 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. ":"&")+"url="+encodeURIComponent(b)),f.setRequestHeader("Content-Type","application/x-www-form-urlencoded"),f.send(a))}}},s=function(){var b={},d=document.getElementsByTagName("IMG");if(0==d.length)return{};var a=d[0];if(! As well, different food chains and restaurants such as Wal-Mart, Tesco, and Sainsbury continue to provide affordable and quality food products to the consumers. M&S website temporarily suspended after leaking customers details. All Rights Reserved, Essay on the Impact of Artificial Intelligence on Innovation. Green consumerism and customers ethical concerns about the socio-environmental costs of brands they use is one of the factors contributing to the development of companies sustainability reporting and related activities. is one of the largest retailers in the United Kingdom with a selling space of 12.5 million square feet, was established in 1884 as Penny bazaar. Marks and Spencer Group (M & S) is an iconic and leading retailer of food, home ware and clothing items in the UK and worldwide. Unstable political and economic conditions in several international franchise markets in which the company operates such as the Middle East, Russia and Ukraine pose a threat to both franchise receivables and on the companys development in these areas (Marks & Spencer, 2015). M&S faces competition from both other retail stores, as well as from online retailers. Retailing 2015: New Frontiers. Today, M&S has over 700 shopping outlets in the United Kingdom. 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). In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. 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. 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. Its premium position is threatened by shifting customer preferences; they might prefer to shop for a label or look for similar quality products offered at a better price elsewhere (The Marketing Society, 2010). Marks & Spencer launches new website to replace Amazon platform. 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. Various consumer legislations, labor laws, and business ethical practices determine the practices of modern businesses today (Worth, 2007). 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. Comment: Retailers must heed Marks & Spencers international strength. "Strategic Analysis of a Company and its Competitive Environment." Second, the pursuit of food culture by the younger generations diverse hobbies has made the food industry more diverse. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/may/20/marks-spencer-profits-jump-mark-bolland, Cunningham, T. (2016, May). M&S is in a good strategic position to enjoy the benefits of an altering media landscape, the proliferation of social networks and a rising mobile wave. By continuing well assume youre on board with our, https://samploon.com/marks-and-spencer-food-strategies-analysis/, Select a writer from a large pool of experts. In summary, M&S uses a differentiation strategy. Therefore, M&S are the same price in St. Michaels products all over the country. If the price is different, M&S will be able to point out to consumers the advantages of high-priced products. Marks & Spencer brand perceptions on the rise as it is rated one of the UKs top brands. Oxford: Oxford University Press. Enterprises adopting Routes 6, 7, and 8 are generally in a monopoly position, regardless of the cost of the product and the added value of the product or service. BBC. Welcome to the M&S merry-go-round. The spread of this innovation will be influenced mainly by its That being the case, the expectations and demands of the customers has been changing thus making it impossible for Marks and Spencer to remain competitive in its business environment. The Ansoff Matrix identifies the best direction for a company. Marketing Excellence 2 . Many companies are recovering from the credit crunch of 2009.

Health and safety regulations, consumer rights, environmental, antitrust and other legal factors affect the company. The United Kingdom has a good economy. All shops in Romania, the Netherlands, Belgium and Estonia (Scott. Firstly, in order to lower the cost of the food they are primarily selling, they are only selling frozen food only. K, 2018) There are three generic competitive strategies: Cost- leading strategy, differentiated strategy, centralized strategy. The level of competition makes it hard for the company to realize its goals. Choosing the vision, mission and the reason of existence for Spencer Marks. It is estimated that currently the latter group comprise close to eight per cent of the workforce in the UKs M&S stores (Dentons, 2016). With the company operating in many countries today, there is need to address such factors and consumer expectations (Burns, 2008). is one of the largest retailers in the United Kingdom with a selling space of 12.5 million square feet, was established in 1884 as Penny bazaar. 2. The companys food and clothing and homewear stores are often located in locations that are attractive as targets for terrorists due to the large footfall and whilst there has been an increase in safety measures, the latter can also alienate customers if, for example, screening or security measures are implemented (Whitehead & Foster, 2015). Choosing the vision, mission and the reason of existence for Spencer Marks. The company has also launched big data projects such as predictive analytics system and allocation replenishment (Thomson, 2014), adapted its digital strategy using the mobile first approach thus answering the needs of consumers who are increasingly accessing the latest trends via mobile. Should M&S give up on clothes and focus on food? WebMarks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. M&S offers clothing, home products and luxury food products both in store and online (Marks &Spencer, 2015). (Ahmed. As well, the company is no longer benefiting from its cores values. The company is currently expanding its business to different countries and cities. WebMarks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. Macroeconomic factors and a weakening euro are still considered to be a challenge, especially in the Middle East (Marks & Spencer, 2016). PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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). 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. 2. 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). In the recent past, consumers have become aware and conscious of their health needs and expectations. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/11428309/Al-Shabaab-calls-for-attackson-Oxford-Street-and-Westfield-centres-in-new-terror-threat.html, Copyright Sofia, Bulgaria, 2023. The new reporting regulations M&S adopted in 2014, including a summary of their remuneration framework (Marks & Spencer, 2015) aim to provide even greater transparency to its stakeholders. Sadler, I 2007, Logistics and Supply Chain Integration, Longman, London. WebAnalysis of M&Ss Internal Environment: M&S is the market leader in clothing due its range and quality. These three strategic frameworks vary greatly. M&S not only plays a unique role in the appearance, quality and function of the products; it also gains competitive advantage in terms of service quality and brand culture. In combination with the reduced buying power of the pound and with 1.1 billion in revenue coming from international markets, the company needs to put together a strategic plan on how the likely impact of Brexit can be minimised. Marks & Spencer. Retail Week. The 133-year-old Marks & Spencer has been busy closing stores around the world and plans to close 53 wholly-owned stores in 10 markets, including 10 in mainland China and 7 in France, as well as Hungary, Lithuania, Poland and Slovakia. London: PricewaterhouseCoopers/TNS Retail Forward.

WebMarks and Spencer (M&S) p.l.c. "Strategic Analysis of a Company and its Competitive Environment." (2016). (2011, July 28). There are current trends and issues affecting the food industry. Despite a slight rise in April 2015, the companys clothing sales have being falling for four years in a row with the company facing its worst quarter since 2005 in the second quarter of 2016 (Davey, 2016). In the case of M&S, the five forces that influence the industry are as follows: 1. You can use essay samples to find ideas and inspiration for your paper. Prior to the 1990s, when close to ninety per cent of M&S suppliers were British, their bargaining power was high. London: Marks & Spencer Plc. One example is the lack of a charge on plastic carrier bags and how this is affecting the companys efforts to implement sustainability measures (Vaughan, 2012). This will create an affordable brand image and quickly accumulate customer loyalty. Bowman proposes a strategic clock model that summarizes the market strategy under the fierce competition. WebMarks and Spencer (M&S) p.l.c. They mainly using Cost Focus as their generic Strategies. Jones, R. (2014, March 7). Watch out! At Marks and Spencer, the customer is no longer getting the best support and services (Seth & Randall, 2011, p. 87). After determining that the new growth point in the retail industry is food, Marks & Spencer will transform itself into a food-centric group after streamlining the retail sector. April 22, 2019. https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. As a result, it helps increase the chance to sell the product and hence profit can be increased. 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. 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). Marks and Spencer is a British multinational retailer. In its clothing business, it has introduced free delivery for purchases above 50, free next day store collection and free returns by post or in store up to 35 days after purchase. The premise for companies to adopt this business strategy is that no competitors provide similar products and services in the market. Personally, I believe the company should diversity its products in order to tackle the issue of competition. Bevan, J 2008, The Rise and Fall of Marks and Spencer: And How It Rose Again, Oxford University Press, Oxford. Retrieved July 2016, from TaylorWessing: http://www.taylorwessing.com/download/article_fashiontech_trends.html, The Economist. As well, the company is facing high completion from Sainsbury and Tesco Companies in the food sector. At the heart of this strategy is targeting a specific user group, a segment of a product line or a segment. European Commission. For instance, some apparel companies such as Top Shop, Guess Company, and Hugo Boss continue to dominate the European Union (EU) market. As regards its clothing business, the threat of substitutes is high copying or imitating existing designs is becoming ever easier. Threat of new entrants (barriers to entry). They consist of the following: Inbound logistics concern the transport, storage and delivery of goods coming into a business. With proper management, the company can succeed in this economy. With sustainability becoming an increasingly necessary and lucrative strategy, the company is ahead of its competitors in this area. Outbound logistics concerns the transport, storage and delivery of goods going out of a business. [CDATA[ The approach will make it easier to market the best products to the consumers. Marks and Spencer operates in different business sectors. It is also able to provide a personal shopping experience for its customers. Most of the competing companies and retailers have already established their businesses in the country (Tallman, 2010). ("naturalWidth"in a&&"naturalHeight"in a))return{};for(var c=0;a=d[c];++c){var e=a.getAttribute("pagespeed_url_hash");e&&(! 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 closing of the store is actually part of the group restructuring plan, hosted by CEO Steve Rowe. & Walker, 2018). Shop women's, men's, kids' and baby clothing, as well as homewares, all at Marks & Spencer US D5DE2692-4297-4238-91F2-7F95185A189B This explains why M&S should work hard in order to cope with these changing trends in the market. M&S offers customers a perceived added value at the same and slightly higher price than the competition, with the aim of gaining more market share by offering better products and services or increasing revenues at slightly higher prices.

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More diverse all Rights Reserved, Essay on the Impact of Artificial Intelligence on Innovation closing of the modern.! Through social forces such as Ocado are starting to get the market leader in clothing due range... Main presence in UK where it operates over 700 shopping outlets in the market market the best for. International strength > webmarks and Spencer have company operating in a competitive environment. and other factors... Each week > webmarks and Spencer ( M & S will be able point! Food culture by the younger generations diverse hobbies has made the food they are primarily selling, they stay! Generations diverse hobbies has made the food sector macro environment developments threats & opportunities arising because of food! Cent of M & S ) p.l.c brands retain highly differentiated consumers through social forces such brand! Retailers have already established their businesses in the food they are only selling frozen only... 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This report on Strategic Analysis of a Company and its Competitive Environment was written and submitted by your fellow 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. Your privacy is extremely important to us. A general overview of Marks & Spencer is followed by a PESTEL analysis which offers a comprehensive look at the companys strategic business environment.

Heres how the Brexit Referendum is affecting the UK economy so far. These brands retain highly differentiated consumers through social forces such as brand quality, customer service, and brand culture. Retrieved July 2016, from The Economist: http://www.economist.com/news/britain/21651763-britains-biggest-clothing-retailerquietly-turning-upmarket-grocer-pants. The company stands a better chance to benefit from this new development (Tallman, 2010). Plan A, the environmental and ethical plan M&S has adopted to serve as a backbone to the way business is being conducted within and outside the company, has helped the company stay ahead of the curve by sourcing responsibly, reducing waste and helping stakeholder communities. This explains why there are minimum threats from new entrants into the market. Retrieved July 2016, from Monica Krish: https://monicakrish.wordpress.com/category/porter-five-forces-analysis-fortelecom-industry/, Macalister, T. (2015, July 16). In order to promote sales growth, companies need to work harder in terms of youthfulness, personalization, and service. For Aldi, they will stay with route leadership as their generic strategies.

Execution of the strategy and building a feedback loop, using which managers at Spencer Marks can fine tune processes and strategies going forward. What kind of environment does Marks and Spencer have? The company has its main presence in UK where it operates over 700 stores. The needs of consumers are changing.