M&Ss products are perceives as value for money due to quality, convenience and wide range of products. Almost 100% of sales of own-brand are a biggest difference for M&S with the general retailers. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. In the industries within which M&S operates, customers bargaining power is high. Stable Share Price: MKS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week. 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). 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. Annual Report & Financial Statements. Whilst this strategy led to a short-term decrease in sales, it resulted in a long-term increase in consumer confidence due to British customers preference and desire to seek both value and quality. 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. Marks & Spencer. 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 weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. The case with M&S is a scenario of rapid organisational transformation, which was based on a vision imposed on the company in a mainly directive fashion, down from the top, by its management and CEO, but which could potentially lead to a widespread change of attitudes and behaviours in the company. (2015). The basis of obtaining competitive advantage is to derive a competitive strategy that provides the customers with what they need or want in a more effective way than the competitors. In addition, with regard to the free movement of people, work visas or residence permits would be required for both UK citizens working abroad and EU workers employed in the UK. Even though the company still holds the first position in terms of sales by value, its 14 quarter slump preceding a one-off rise in sales in the first quarter in 2015 makes it likely that the company will be moving its focus from clothes to food (The Economist, 2015). This paper examines Marks & Spencer Plc an iconic brand and one of the UKs leading retailers. Heres how the Brexit Referendum is affecting the UK economy so far. Marks & Spencer: Quality worth paying more for. Introduction 4. The advantage that M&S is different from these competitors is its depth and breadth of product portfolio and a unique marketing strategy (David Campbell, 2009; Lowson, R.H. 2001). 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). Third, long-term to maintain brand image. 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. In the retail sector in which Marks and Spencer operates, competition is strong and growing the company is facing intense rivalry from supermarkets chains, homewear stores and fashion retailers. Some operation management theories are applied in the process of analysis. Competition: Very high: the levels of competition in the apparel, food, . The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360 view of the company. It is associated with lifestyle and Retail since it operates in the retail sector. 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. 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). This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. Below are the Strengths in the SWOT Analysis of Marks & Spencer : 1. The threats in the SWOT Analysis of Marks & Spencer are as mentioned: 1. In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. Close cooperation of both sides ensures Marks and Spencer to achieve its corporate objectives provide its goal customers with high-quality product within the ability to purchase.. To modernise, simplify and create a distinct brand across its various offerings, in 20142015 the company created a unified storytelling-based brand identity for its food and clothing markets via Only M&S while preserving Est. 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. 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). 3. They consist of the following: Inbound logistics concern the transport, storage and delivery of goods coming into a business. Free store collection Free delivery when you spend 60 Free returns for online orders. Marks and Spencer Group plc - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. Strong competition from other retail brands means limited market share, 2. Marks & Spencer is often referred to as the nation's favourite retailer. Marks & Spencers head of clothing quits retailer after sales slip. In 2015, this strategy helped the company maintain its market share in most of its markets and achieve strong sales in key owned markets such as Hong Kong or India (Marks & Spencer, 2015). Marks & Spencer is one of the leading brands in the lifestyle and retail sector. 1st jan. Capi. 5 kinds of factors are the threat of potential entrants, threat of substitutes, the bargaining power of buyers, suppliers and the bargaining power of existing competition within industry. It may need to restructure its supply chain once it loses access to the EUs open market and UK citizens working in stores in the EU as well as EU nationals employed in UK stores may be affected when the freedom of movement of workers is no longer applied in the UK (Dentons, 2016). Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Marks & Spence: From pants to panettone. At the other end, fashion brands such as Zara, H&M, Gap and Next are targeting younger, fashion-oriented clientele with their latest fashions and affordable prices. With the emergence of electronic commerce, M&S also creatively establish a website, combining traditional retailing with e-commerce. Through joint, mergers, acquisitions, joining, enterprise implements chain operations, the rapid expansion of operation scale, to achieve business activities standardization, specialization, centralization. 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 company has its main presence in UK where it operates over 700 stores. Export data to Excel for your own analysis . No. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10403348/Should-MandS-giveup-on-clothes-and-focus-on-food.html, Ruddick, G. (2016, July 7). Key Legal Brexit Issues for Retailers. The most successful retailer using cost leadership strategy the worlds largest retailer, Wal-Mars. The decline of M&S post the 1990s was largely due to competitive retailers operating with foreign imports. Marks & Spencer. . All Rights Reserved, A Marketing an Analysis of Freespirit Retail Outlet, Essay on Zora Neale Hurston, the Gilded Six Bits. Marks and Spencer is known to the world due to a standardized and information-oriented management style of supply chain management and suppliers to make it a truly meaningful win-win situation. Large-scale commercial retail enterprises shall include at least the brand connotation of the brand of goods, services, brands, and on the basis of the previous two derived from the three-tier corporate brand meaning. 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. 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. 4. Abroad, it sells goods and services in more than 320 stores in over 40 countries. Increasing terrorism attacks across Europe are also impacting consumer confidence and retail spending (Marks & Spencer, 2016). Until today, M&S is still one of the worlds most profitable retailers (John Stanley, 1991). Marks & Spencer takes on banks with new current account. This article has been researched & authored by the Content & Research Team. Marks & Spencer. 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 main way to differentiate their market position, that is, to determine a companys market position is different from other enterprises or image. Marks And Spencer: A SWOT Analysis. 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. 5.3%. In addition, the recent Brexit vote is likely to have a substantial impact on the retailer in both its home stores and abroad. Facing fierce competition, M & S retail businesses have successfully used a variety of competitive strategies to improve their competitiveness. In addition, the in the implementation process of objectives accumulation strategic, the cost leadership strategy and differentiation strategy can also be used at the same time. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). Retrieved July 2016, from The Guardian: http://www.theguardian.com/money/2014/mar/07/marks-and-spencer-bankcurrent-account, Krish, M. (2012, January 19). From raw material procurement, manufacturing, to sales, they strictly control the quality, allowing consumers to taste delicious food while taking care of nutrition and health. M&S Bank. 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. Marks & Spencer brand perceptions on the rise as it is rated one of the UKs top brands. The two political factors that affect the company are political stability and VAT. (2016). BBC. M&S can develop their website 2. Seeking Alpha - Go to Homepage. 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). Further developments in this regards can present opportunities for the company (Brignall, 2016). Technical analysis trends MARKS AND SPENCER GROUP PLC. Threat of new entrants (barriers to entry). During the financial crisis of 2008, while competitors such as Aldi, Asos or Tesco followed a strategy of discounted pricing, M&S emphasised higher quality products and better consumer satisfaction (The Marketing Society, 2010). 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. 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). 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. The company has closed its smaller regional warehouses and in 2010 it opened a super warehouse in Bradford. The 133-year-old Marks & Spencer has been busy closing stores around the world and plans to close 53 wholly-owned stores . London: Retail Week. Martha is a retail business founded by a Jewish immigrant in United Kingdom 1884. 1,105 17. Marks and Spencer plc was set up in 1884 in Leeds by Michael Marks and re-branded as Marks & Spencer (M&S) ten years later when a partnership with Thomas Spencer was formed. In 2007 Marks & Spencer (M&S) was the UK's largest clothing retailer with a market share of 11.1%. Five reasons Marks & Spencer is struggling against its competitors The coronavirus has had a big impact on the retailer, but that cannot hide other shortcomings Marks & Spencer to cut 7,000. United States of America. Govt policies for retail stores. 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). Retrieved July 2016, from The Economist: http://www.economist.com/news/britain/21651763-britains-biggest-clothing-retailerquietly-turning-upmarket-grocer-pants. Porter through the study of industrialized countries finds industrial cluster is a common phenomenon in the process of industrialization, in all developed economies, are it is clear that a variety of industrial clusters. 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). However, in 20142015 the company experienced difficulties in marrying its online operations and distribution from its Castle Donington centre. (2011, July 28). The project also summarises the different segments on . M & S retail as an industry has its own specific competitive structures, which can be analyzed from the Porter five forces of competition: 1) Entry threat. Online fashion retailer, ASOS, has been one of the companys main competitors in recent years (Davey, 2016). Market Average Movement. Customers are also increasingly focusing on product design and after-sales service, so Marks & Spencer has also taken a series of measures accordingly. SWOT Analysis is a proven management framework which enables a brand like Marks & Spencer to benchmark its business & performance as compared to the competitors. Retail enterprises to implement the strategic objective is to choose one or the accumulation of a group of market segments as part of its services, target markets, strategic optimization, to seek their presence in the target market on the competitive advantage. M&S raises the stakes in battle over current accounts. Sector and Competitors. A case study analysis report of Marks and Spencer . (2015). The company had been in its business for more than hundred years and has the biggest market capitalisation in the retail industry. Think Innovation: How were encouraging innovation across M&S. For this case study, Marks and Spencer is selected. 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 difference amongst the gross profit alone is a colossal 700%, with the . Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. One of the UK's leading retailers with around 21+ million customers each week. M&S has struggled to adapt. As the retail business more and more abundant supply of commodities, increasing the power of buyers, which forced more and more retailers adopt the low-cost, low-cost, high-quality service strategy, retailers profiteering opportunities less and less. However, despite its successful specialist positioning. Marks and Spencer Group PLC does not currently have any hardcopy reports on AnnualReports.com. Keywords: M&S; Marks & Spencer; SWOT; PESTEL; Porters Five Forces; Strategy; Value Chain Analysis. 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). From the view of Sales category, M&S accounts for 15% of the UK clothing sales, food sales 4.6%. When enterprises have become a cost leader, they can effectively compete against the other forces of competition, obtaining advantage in competition. 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. 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. London: PricewaterhouseCoopers/TNS Retail Forward. Strategic Planning and SWOT Analysis. Retrieved July 2016, from The Guardian: https://www.theguardian.com/business/2016/jul/07/welcome-to-the-ms-merry-go-round. Second, establish and run enterprises to brand image. 4) Diamond system: the State plays an important role in the success of enterprise competition. 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