professional specifically for you? We use cookies to give you the best experience possible. WebMarks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. WebMcDonalds is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In addition, the recent Brexit vote is likely to have a substantial impact on the retailer in both its home stores and abroad. Marks and Spencer has established the best supply chain processes and strategies with its suppliers (Williamson & Jenkins, 2013). The company which is currently 132 years old has built its image on offering a quality value-formoney products strategy has recently started refocusing on a low cost strategy for its clothing business. Outbound logistics concerns the transport, storage and delivery of goods going out of a business. 
They mainly using Cost Focus as their generic Strategies. Your privacy is extremely important to us. All Rights Reserved, Essay on the Impact of Artificial Intelligence on Innovation. Quality and care are at the heart of everything we do especially when it comes to making our products. 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). The decline of M&S post the 1990s was largely due to competitive retailers operating with foreign imports. 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). In 2015, M&S experienced stalled growth in its international business due to global uncertainties, substandard infrastructure and decreased profitability in new markets which lead to the closing of twelve stores in 2016. 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. Compared to low-cost strategies, such as Wal-Mart, products that are low-priced and low-intuitive are inferior goods with no names on the shelves. If the price is different, M&S will be able to point out to consumers the advantages of high-priced products. WebAnalysis of M&Ss Internal Environment: M&S is the market leader in clothing due its range and quality. Abroad, it sells goods and services in more than 320 stores in over 40 countries. This means that the company has mainly focused on the UK market. The above assessment indicates that Marks and Spencer has some strengths and weaknesses. The level of competition is also increasing (Tallman, 2010). 2. 2. This strategic clock position is not pleasing. As they operate in many segments like food cloths and home and beauty products they have to deal with a The company is slowly by slowly losing its market share and profitability (Tallman, 2010). 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. According to analysts, a steeper fall is expected in the coming years (Macalister, 2015). London: PricewaterhouseCoopers/TNS Retail Forward. 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). 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. Bowman believes that these directions are too general, so the above framework is subdivided into eight strategies to create greater practical value. It is agreeable that people are looking for new fashions and designs. Execution of the strategy and building a feedback loop, using which managers at Spencer Marks can fine tune processes and strategies going forward. 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). ":"&")+"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(! The company has a strong equity. However, the major threat is from terrorism. 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). The companys international business, which comprises 468 wholly-owned, jointly-owned or franchised stores and spans 59 territories in Europe, Asia and the Middle East, had revenue of 1.1 billion in the last financial year (Marks & Spencer, 2016). 5. The companys strong food business managed to deliver like-for-like growth in every quarter in the last financial year, maintaining its margins and outperforming the market by 3.5% due to its distinct and differentiated specialist strategy (Marks & Spencer, 2015). This is the case because there are more suppliers in the existing market. Marks & Spencer. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. See below how Marks & Spencer compares to its competitors with CEO Rankings, Product & Services, NPS, M&S is investing in its digital development which is evident through the launch of marksandspencer.com in 2014, engaging with 2.6 million people via social media, platforms and social media websites such as Twitter, Instagram and Facebook (Ratcliff, 2014). However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors. With the same brand, you can achieve the same price. The spread of this innovation will be influenced mainly by its The company has closed its smaller regional warehouses and in 2010 it opened a super warehouse in Bradford. Analyse PESTEL for Monitoring your Business or Organization. While sales in the clothing branch of the company are falling M&S, has a strong hold in the food business with a successful specialist strategy leading to an increase in sales. WebM&S operates as a family of businesses, selling high-quality, great-value, own-brand products and services, alongside a carefully selected range of third-party brands. Retrieved July 2016, from The Guardian: http://www.theguardian.com/money/2014/mar/07/marks-and-spencer-bankcurrent-account, Krish, M. (2012, January 19). 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. April 22, 2019. https://ivypanda.com/essays/strategic-analysis-of-a-company-and-its-competitive-environment-report/. The spread of this innovation will be influenced mainly by its M&S has been affected by the recession and has seen a big slump in sales in 2009, a fouryear decline in its clothing sales and most recently, a ten-year low in its clothing sales in the second quarter of 2016 (Davey, 2016). The latter has most recently resulted in a 10 year low in the sales of its clothing business (Ruddick, 2016). In the recent past, consumers have become aware and conscious of their health needs and expectations. 1884 thus celebrating its heritage (Swift, 2014). It also has its presence in over 40 nations globally. Companies in the industry are required to embrace new technologies in order to emerge successful. Potential entrants would be discouraged by the strong loyalty of M&S customers, the companys strategy of focusing on quality products and a long-established and well-developed supply chain network (Vizard, 2015). Most of the stores are mainly selling clothing and food and It is serving about 32 million customers (Marks & Spencer 2018). The food industry naturally has different changes from the past, which is mainly reflected in the dining place. 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. Generic competitive strategy means basic types of competitive strategy was proposed by Michael Porter, a famous strategic management scientist at Harvard Business School. 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). M&S redesigns its products and marketing processes in order to achieve the best outcomes. This impression is one of the keys to M&Ss success. M&S sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. & Walker, 2018). This resulted in customers cancelling delayed orders (Butler, 2015). As well, it should examine other aspects such as mortality rates, cultural changes, and consumer expectations. (2011, July 28). For instance, the company does not provide loyalty cards and gifts to its customers. Yet, these attempts have so far not resulted in a desirable outcome (BBC, 2013). Need a custom Report sample written from scratch by For Aldi, they will stay with route leadership as their generic strategies. 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). The second is to pursue a cost-leading strategy and actively change the cost structure while maintaining perceived value and market share, such as Wal-Mart. The ensuing analysis aims to look at the strengths, weaknesses, opportunities and threats faced by M&S. The primarily product-oriented strategy of the company that places a strong emphasis on its M&S brand is not beneficial at a time when M&Ss competitors are employing a customer-oriented approach and investing in building strong consumer relationships (Ruddick, 2013). Their spending and purchasing habits are also changing. Marks and Spencer Group (M & S) is an iconic and leading retailer of food, home ware and clothing items in the UK and worldwide. London: Retail Week. In addition, Porters Five Forces Analysis discusses the industrys competitiveness and the firms competitive positioning in the marketplace. Having begun as a market stall, today it is considered to be one of the UKs leading multinational retailers with over 1,382 stores worldwide, including 468 stores in Eurasia and the Middle East. M&S should consider such changes in order to realize its potentials. 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. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. [CDATA[ The company stands a better chance to benefit from this new development (Tallman, 2010). (2019, April 22). Marks & Spencer takes on banks with new current account. In addition, young consumers are also very concerned about the socialization of diet, they will automatically demarcate the circle, and do similar things with people in the same circle, such as coffee shops are the colonies of the literary youth. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. Marks and Spencer food sales offset clothing weakness. Today, M&S has over 700 shopping outlets in the United Kingdom. More importantly, the constant innovation of technology has made consumers more and more demanding about the food experience. 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). You can use essay samples to find ideas and inspiration for your paper. Abroad, it sells goods and services in more than 320 stores in over 40 countries. The company has its main presence in UK where it operates over 700 stores. For example, M&S uses powerful adverts and stories to capture the emotions of many potential buyers ( Marks & Spencer 2015). WebMcDonalds is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. Applying this strategy in M&S, they are not like traditional retailers, Marks & Spencer stores sell their products, whether they are clothing or food, all with their own brands, and use only one unified brand St. Michaels, that is, M&S does not provide consumers the opportunities with brand choices, consumers either afford to buy St. Michaels products or go to other stores to buy other brands. Annual Report & Financial Statements. The world is today becoming sensitive about the environment. However, the run-up to and outcome of the British EU referendum on 23 June 2016 resulted in a dip in the companys sales in its last quarter (Davey, 2016). Marks & Spencer is one of the largest retail chains in the world and its presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with the demands and expectations of valued customers. M&S has to ensure that it does not obstruct any laws or regulations both in its home market, in international markets during expansion as well as in the countries alongside its value chain. As well, different food chains and restaurants such as Wal-Mart, Tesco, and Sainsbury are providing affordable and quality food products to their consumers. Marks & Spencer is one of the largest retail chains in the world and its presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with the demands and expectations of valued customers. M&S is one of the leading UK retailers of food, clothing and homewear with 1382 stores all over the world. For example, different retailers such as Debenhams, The Gap, Top Shop, and Next Company continue to dominate the apparel market. The level of competition in the business is very high. All shops in Romania, the Netherlands, Belgium and Estonia (Scott. 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. Companies can only rely on cost leadership strategies for mass production. In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. The move resulted in a considerable decline in the bargaining power of its British suppliers (BBC, 2013) and, hence, the bargaining power of its supplier is currently low. PESTEL Analysis makes it easier to measure the organization potential according to the major environmental factors (Verdin & Heck, 2009). 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