marks and spencer competitive environment
Funding it will require M&S to release development value that exists in some of its older sites across the UK. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. It also has to do with the choice of colors for the products and how the products are packaged. It did not represent the modern womans taste for a more casual look. However, there is a need for consistency when marketing products on Amazon.com. For instance, their clothing range - especially womenswear - has suffered from lack of novelty. Superior organizational strategy are generated by the top level management whereas the middle level management and lower level management of the company implements objectives and strategies to accomplish the complete strategy gradually. A new partnership with Ocado has cost 750m, but will at . Generic strategy was developed strategies under this school, especially it can identify position in the market. Changing store environment, design, fashion, food and change in lay out can attract more customers. Ten years later he was joined by Tom Spencer, and the partnership grew into the company known today as Marks & Spencer (Marks In Time n.d.). M&S has to make plans for future recession and how to cope with recession if it happens again. The paper concludes by presenting the final strategic position of Marks & Spencer using the SPACE analysis and providing recommendations for future growth. The drop in sales in the clothing division has been taken by the management of M&S as an incentive for it to strengthen the marketing of the division. The company has its main presence in UK where it operates over 700 stores. Strinfellow, A 2010, About flat Organization structure, Web. Customers at M&S stores can leave their feedbacks freely. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. It depicts that for Marks and Spencer the proposed business strategies in reference to new product development must be scaled. Thompson, J & Martin, F 2010, Strategic management: awareness and change, Cengage Learning, South Western. Marks and Spencer Marketing Mix: Marks and Spencer, commonly called M&S, is a public limited company of British origin. M&S relies on differentiation and positioning to attract and retain its customers. Due to its good reputation in online marketing, Amazon.com is the leading online retail company in the globe. Positioning entails using various strategies like promotion, distribution of products or services, and production of unique products with low prices to build an identity of a particular Company in the minds of consumers (Armstrong & Kotler 2009). Newstatesman.com: Marks & Spencer: great food, bad clothes 2013, Web. 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. As a business thats been around since 1884, we know how important it is to look to the future. Positioning seeks to stabilize and retain the positions of the differentiated products for a particular Company so as to retain the competitive advantage of the Company in regard to those products (Ferrell & Hartline 2010). Economic situation of the country is the factor that can pressurise the M&S business. We employ around 65,000 colleagues across our stores, support centres, logistics operations and international teams. The analysis as a whole, however, has a number of limitations, including the fact that the companys financial factors for 2011 are not available. The Organization, therefore, needs to establish a division to deal with the designing and production of the customized products for customers who need such products. The discussion has been described in detail about the core analysis of M&S' internal and external environment, SWOT analysis of M&S has been included. And its UK success has been built on low prices, cultivating customer loyalty, unbeatable quality, offering a range of different store concepts and expanding into retailing services (Tesco Plc annual review, 2005). M&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. Marks and Spencer, originally known as Penny Bazaars, was founded by Michael Marks in 1884 as a clothing sales company in Northern England. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. A general overview of Marks & Spencer is followed by a PESTEL analysis which offers a comprehensive look at the company's strategic business environment. Retrieved from https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. One of the most effective ways that the Marks & Spencer brand has evolved to adopt new ideas of "value" in the modern world, is with their "Plan A" strategy. According to the Chief Executive, Mr. Marc Bolland, the Organizations focus over the last 3 years has been to strengthen its foundation by investing in areas that improve customer satisfaction. Employees are selected not on the basis of friendship, but on merit and qualification. The Organizations positioning initiatives are likely to remain the same over the next 12 months. Also there will be, analysing the two companies in terms of size and perception, in the sense of the growth of both companies over the years and perception on how the Tesco and Sainsburys are perceived by their customers and also themselves., Marks & Spencer have recognised that they havent responded quickly enough to consumers changing needs and preferences. We know its our people who make M&S successful. Unlike many of its competitors, M&S does not operate factories and as a result, it does not manufacture any products for itself. At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position. Taylor, F.D 2008, The principles of scientific management, Digireads.com Publishing, Philadelphia, PA. Focusing on all the market segments would also enable the organization to improve customer loyalty and its brands, which would be sustainable in the long-term (The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014). The strategy has also enabled the Organization to constantly update its customers and stakeholders on its undertakings. Weakness of Marks & Spencer - Internal Strategic Factors . 2021, ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. As the students are the most valued customers due to frequent money spenders, Primark attracting them by officering cheap and fashionable clothes. The company is employing approximately 80000 people in 2020. External Forces Marks and Spencer has many external forces that affect the company. There are six of these forces, Political, Economic, Sociological, Technological, Legal and Environmental factors. In this case, Nordstrom uses these types of tool in developing their strategic plans which are the BCG matrix and SOAR analysis. The analysis of external environment enables M&S to understand the changes in business environment and brings ahead of its competitors. However, its main target is women who earn a high income. Doing the right thing is in our nature and as a company, embedded in our values. M&S hopes to make huge profits from the sale of womens outfits (M&S: transforming M&S 2014). This entails the study of how the company deals with change in the market, how it responds to the market demands. M&S needs to show its innovation and create the fashion style in clothing. Marketing is largely concerned with strategies to ensure the sale of product which include influencing consumers to buy product by altering, design, pricing, the image of the product in the market, promotion and the quantity produced. Primark has captured a big market in United Kingdom. The assets and ventures of the organization together ought to be utilized to eradicate the failures and the threats so as to build up a demanding philosophy against the dangers seen as threatening the progress of the company. Advantages: The initiative was designed to incorporate the customers in making decisions about product development. Marks and Spencer will use social and electronic media to target its audiences as companies are increasingly using them in the modern competitive environment (Vizard 2015). (Drummond and Ensor, Strategic Marketing Management, p. 149, Butterworth Heinemann) Marks & Spencer is a perfect example of a company that had a successful strategy but failed to adapt to the changing environment and have therefore suffered from strategic wear-out. Under the 480m investment plan M&S is to open 12 new food halls in communities including Stockport, Barnsley and the seaside town of Largs in North Ayrshire, Scotland. M&S is growing in menswear and kids wear market rapidly. M&S uses email for advertisement purposes. M&S operates in dynamic social, political, and economic environments. Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. 1. Leat, M 2012, Exploring employee relations, Routledge, London. IvyPanda. Political decisions and circumstances are very important for the M&S. In-text: (Sanchez and Heene, 1997) Your Bibliography: Sanchez, R. and Heene, A., 1997. Following is highlighted some factors of M&A's external environment and how they effect Marks & Spencer in executing its strategies: (P)OLITICAL We're here to answer any questions you have about our services. Discuss this statement with reference to the performance of the UK retailer Marks & Spencer over the last 10 years. The management of the organisation has been assisting. Sir Richard Greenbury, insisted that the profit loss was due to the competitive environment. The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014, Web. However, that does not mean that it has neglected the other segments such as low-income earners. Operation decisions are influenced by marketing strategies while marketing strategies are affected by the outcomes of other KBFs. If done well, differentiation enables customers to purchase specific products or services in a market flooded with many varieties of products and services (Thompson & Martin 2010). Over the last one quarters, M&S's revenue has decreased by 0%. However, in terms of responsibilities, those at the bottom are mostly involved with the daily activities of Organizations while those at the top are mostly involved with policy issues and public relations activities. McDonalds 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. Keep up to date with all the latest news from M&S. Moreover, according to Business Engine, Inc. (2006), it reports that close control of internal resources and diligent monitoring of all expenditures are also the critical aspects for Tesco to maintain its leading position in the market. If we compare the prices with BHS or top shop we will find that BHS has lower prices than M&S. Boosting personalized selling (Thompson & Martin 2005). The report presents an interesting business case and competitive analysis for M&S which illustrates that only an educated business strategy for implementing market segmentation, bolstering online presence and reducing reliance on UK market will help M&S overcome its present challenges and tread on a trajectory of growth and success. When people like the page they are able to access the Organizations business information such as services offered, physical addresses, the Organizations mission and vision among other information. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The Organization also enjoys the goodwill of the host governments, which has enabled it to invest heavily without the fears associated with political risks (Slideshare.net: Marks & Spencer strategic analysis 2015). Looking for a flexible role? Our store rotation programme is about making sure we have the right stores, in the right place, with the right space and we're aiming to rotate from the 247 stores we have today to . Keeping in mind PESTEL analysis and competitors, it is being summarized that M&S has to make the strategies taking into considers its weakness. The reason is that many people use their e-mail addresses to register with Twitter and Facebook. Marks and Spencer is a general retailer that sells clothes, gifts, home furnishings and foods. The company has 979 stores around the United Kingdom plus 454 stores on the international field. April 26, 2021. https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. Socio-cultural environment The external environment analysis pays attention to the factors affecting the company and is often referred to as the macro environment. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. Out of fashion and high prices of clothes are two of main reasons of reduction in number of M&Ss customers. As shown above, M&Ss customers are classified into various segments. Sims, R 2007, Human resource management: contemporary issues, challenges and opportunities, Information Age Publishers, Greenwich, Conn. Slideshare.net: Marks & Spencer strategic analysis 2015, Web. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. Copyright 2022 IPL.org All rights reserved. Last accessed 16 May 2011., In this assignment, there will be a critical comparison of the UKs biggest retailers Tesco and Sainsburys, outlining their marketing strategy, the key factors of their success and also the advantages and disadvantages of both companies. These are known as macro environmental factors. It is true to say that under globalization, firm will have to meet competitive environment which for some company, it is hard for them to survive, but like what we always know: "competing makes developing" so they . Mark and Spencer mission statement as former times and still is 'Good quality for the penny' whereby the penny turned . Pricing strategies, for example, cant be set lower than the costs of making the products (reaching break even point). 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