Supermarkets have introduced 'high quality' food ranges, such as Sainsbury's 'Taste the Difference' and now supply many other goods - others have developed inexpensive ranges of clothes with 'designer labels' - for example, George at Asda. 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. The international franchise businesses of M&S in the Middle East, Russia and Ukraine also suffered significant decline due to geopolitical instability, local currency fluctuations and decreased consumer demand (Marks & Spencer, 2015). We will be discussing Marks & Spencer's SWOT Analysis. The marketing strategy of M&S is to emphasise the quality and style of its products. 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! Marks&Spencers is a leading retailer of clothing, food, home ware and financial services. Molinero, CM, Bishop, H & Turner, M 2005, 'The distress of Marks & Spencer PLC in 2001: a multidimensional scaling analysis/Los problemas de Marks & Spencer PLC en el 2001: anlisis de escalamiento multidimensional', Cuadernos De Estudios Empresariales, . Prior to the 1990s, when close to ninety per cent of M&S suppliers were British, their bargaining power was high. Both Marks and Spencer and John Lewis cater to a young audience with a good E-Marketing strategy to drive their business. They used their resources and subsequent capabilities to exploit their differences from the competitors and create competitive advantage by: *Empowering suppliers/manufacturers with design responsibility *Closely managing supplier relationships Marks and Spencer Group plc (commonly abbreviated to M&S and colloquially known as Marks's or Marks & Sparks) is a major British multinational retailer with headquarters in Paddington, London that specialises in selling clothing, beauty, home products and food products.It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index; it had previously been in the FTSE 100 . Competitors were obtaining products from sources outside of the UK at much cheaper prices while M&S continued to maintain rigid loyalty towards expensive local suppliers. The company is losing key employees to its main competitors, including product developers, food technologists and General Merchandise design team members. The availability of these stores and accessibility are also . The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. Further, clothing sales reached a ten-year low in Britain (Davey, 2016) and falling oil prices negatively impacted stores performance in the Middle East (M&S, 2016). Marks & Spencer Competitors Marks & Spencer competitors include Volvo IT, Tesco Corporation, PACCAR, MS Global Inc and Phoenix Technology Services. 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 latter has most recently resulted in a 10 year low in the sales of its clothing business (Ruddick, 2016). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. London: Retail Week. 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. 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). Almost no food online M&S will begin selling its main food ranges online on 1 September, after missing out on the market for years. A shift from a strong focus on products to a more consumer-focussed strategy has benefited the company. However, despite its successful specialist positioning. Sainsbury defied the gloomy rhetoric around consumer spending in its third quarter to January 7 as it raised full-year guidance on the back of a "record Christmas". For M&S, basic earnings per share are 1,6p, whereas for NEXT Plc, basic earnings are share is 416,7p. 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). Too many shops: M&S is closing a third of its 300 high . The profile has been compiled by GlobalData to bring to you a clear and an unbiased view of the company's key strengths and weaknesses and the potential . This saved a lot of costs, and profits began to improve. Competition is so fierce that Marks and Spencer faces a big threat of losing its scope in the business. (2015, February). 10% most volatile stocks in GB Market. 1. Competition: Very high: the levels of competition in the apparel, food, . 1st jan. Capi. Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. Once the biggest clothing retailer by volume, M&S has now dropped to third position after Primark and Asda (Butler, 2015). Now they sell stylish, high quality; great value clothing and home products and outstanding quality food. Revenue. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. As regards its clothing business, the threat of substitutes is high copying or imitating existing designs is becoming ever easier. Harrison, J. In 2007 Marks & Spencer (M&S) was the UK's largest clothing retailer with a market share of 11.1%. Marks and Spencer faces some great competitors both in the UK and abroad. According to an estimate, Marks and Spencer have more than 1463 location points in Asia, Europe, and the Middle East, and out of which 1035 stores are in the UK. Marks and Spencer Group plc announced that Fiona Dawson has been appointed a member of the Remuneration Committee with immediate effect.. | January 17, 2023 . The Competitors analysis of Marks and Spencer Enters China looks at the direct and indirect competitors within the industry that it operates in. Industrial cluster is defined as a specific area, with competitive and cooperative relations, and geographically concentrated, with interactive relevance enterprise, specialized suppliers, service providers, financial institutions, related industries such as manufacturers and other relevant bodies composed of groups. As Britain's favourite retailer loses relevance to today's shoppers, Retail Week asks: can M&S be saved? Marks and Spencer food sales offset clothing weakness. . The companys legal environment and hence its legal department were paramount during the companys Simply Food chain expansion in 2007 and especially in allocating new store sites at BP petrol stations (Dry, 2007). Add to Library Added to Library Add to Library Remove. The group's international business accounted for 7.1% of turnover and had grown to 219 franchise stores in (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. Marks & Spencer is one of the UKs leading retailers with over 21 million people visiting their stores each week. TaylorWessing. Jun. With sustainability becoming an increasingly necessary and lucrative strategy, the company is ahead of its competitors in this area. Strategic Planning and SWOT Analysis. Retailing 2015: New Frontiers. This allows people to see a century-old shop in the face of challenges, courage to change themselves and innovative vigor (Jemmeson, 1997). 4) Diamond system: the State plays an important role in the success of enterprise competition. Marks and Spencer has nearly a thousand of suppliers, and suppliers Dibos companies having more than 100 years cooperation, with more than 60 suppliers with more than 50 years of partnership. ACCESS NOW More on Marks & Spencer News M&Ss products are perceives as value for money due to quality, convenience and wide range of products. Technical analysis trends MARKS AND SPENCER GROUP PLC. An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. There are several brands in the market which are competing for the same set of customers. 5) Industrial clusters: regional competitiveness has a great impact on competitiveness of enterprises. Marks & Spencer and suppliers have far more than a general partnership, but rather become a complicit relationship to work. The company targets same C1 category customers. Customer satisfaction business philosophy: customer satisfaction has always been Marks and Spencers business philosophy. A dedicated digital lab team of 150 in-house software engineers is working to make sure the company stays at the forefront of technological developments (Marks & Spencer, 2016). London: Routledge. 0 1 0. 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. The value chain is analysed to explain M & S's competitive advantages. Commercial retail enterprises can be achieved through the following areas cost leadership (Voss, 2003). 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). Competitor comparison. 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! SWOT Analysis of Marks & Spencer evaluates the brand's strengths, weaknesses, opportunities, and threats. In Marks & Spencer SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. 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). Being a popular brand, they need to protect their brand from misuse of fake imitation products. European Commission. Marketing Excellence 2 . Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/business/2016/05/22/the-week-ahead-in-business-and-finance/, Curtis, S. 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