Marks And Spencer Case Study Analysis

Values

 trust, innovation, service, value and quality

Mission

 the creation of aspirational quality that has to be accessible to everyone

Vision

 this is the standard against which all the others are calculated

Strengths

Weaknesses

Clear brand image:

Ø The company have positioned itself as a high-end value product targeting the premium segment. Synchronized with brand image, the products that are sold by retailers are particularly in a clothing line that is sophisticated, modern and stylish. It is found in their clear branding and level of customers who are assured to expect from M&S.

Private labels:

Ø Apart from selling premium brands such as Louis Vuitton, Vero Moda and Versace, the organization has its own labels. This is in almost every category. Few of their leading private label brands comprise Per Una, North Coast, Indigo Collection, Autograph, and Classic Collection. Those are successful in making customers stay familiar with their name and develop brand recall.

Innovations:

Ø About 150 years of various operations, the company has been in competition mainly due to the spirit of innovation. Their innovation is also the same as people, communication and creativity around different levels that are encouraged in thinking out of the box. They propose ideas as they feel necessary. It is their biggest asset.

Diversity:

Ø They have approximately 80000 staff working in offices and showrooms across the globe. Further, they have encouraging diversity and hence having people from every gender, religion and ethnicity. Marks & Spencer also have equal scopes of employers and assures that no discrimination is there one type at the workplace. The factors assure that their employees and sensitive culturally and knows customers better.

Multichannel presence:

Ø They have both online stores and brick and mortar and provides options for franchising. They have been operating in 300 full-line stores, 310 franchised, 220 owned and 910 stored in the UK of simply food stores. Apart from that, they have an online store from where customers throughout the globe are able to shop for their merchandise.

They indicate to sectors where brand or business needs development. The primary weaknesses are as follows.

Ø The inability of penetrating foreign markets successfully:

o They have their main presence in the US, the UK and in Europe. Although they have stores in the Middle East and Asia, they are unsuccessful in winning customers mainly due to maximum of their designs has been western in style and never traditional.

Ø Customer satisfaction:

o Their customers frequently exhibit a low level of satisfaction and lots of problems are there regarding their return policy and in-store experience. It has led to a rise in brand switching and poor brand loyalty.

Ø Supply Chain Scalability:

o Their one of the greatest weakness is poor scalability in the supply chain. However, Marks & Spencer has attempted to provide international access to merchandise with online stores and failed to scale the supply chain for delivering to all locations throughout the world. Although they have attempted in reaching out to Asia of unsold stock and inventory situations, they needed to resort to ending season sales for selling off merchandise.

Opportunities

Threats

Their scopes indicate avenues in the environment surrounding business on which that capitalizes rise in returns. A few of the opportunities are as follows.

New segments:

For Marks & Spencer, fashion is evolving business. New segments are emerging daily. In Asia, large demand is there for traditional and ethnic wear that they have failed to capitalize on at present. It is a sector that can indicate lots of commitment to retailers.

These factors in the environment of Marks & Spencer are detrimental to their development of business. The threats are as follows.

Competition:

Their main competitors are United Colors of Benetton, Zara, Tommy Hilfiger Gap Uniqlo.

Factors

Discussion

Political Factors

 Though the free trade policies have huge political advantages for M&S and their overall 1500 overseas stores, with the closure of Brexit hanging, many of the policies have been no longer applicable to them. Further, it is expected that this would be followed by specific tax embargos that are hard placed and can affect every brand to be shipping out of the UK. In this way, it has resulted in a large cost of productions for them. As the UK has been falling apart truly, their outlets overseas need to increase costs and shut down, losing the customers.

Economic Factors

 Though there are retail giants, their present trend in the market in the UK is transforming towards smaller stores. Those stores deliver lesser cost of markup and thus permitting them in retaining premium status. Most of the population in the UK is considering local retail stores preferred instead of their premium products. Their budget stores are a direct risk to their target market and their brand is unable to devise ways of fighting the risk.

Sociocultural Factors

 They are a household name and because of their longstanding presence, Marks and Spencer is not what they refers to as the brand for the youth. The maximum of their population is related to the brand with the previous. They are devoid of up to below revamp of business persona where they are projected for losing most of their customers from recent generations. However, their brand is able to fight this threat by dominating the ready meals industry.  Thus, there is a sharp rise in the consumption of ready meals throughout the UK and this world. At present, they are one of the top providers of ready meals in the UK.

Technological Factors

 The present-day stores of retail are adapting and changing to new innovations. The introduction of retail and food joints that are self-checkout based is anything that is actually considered in the present industry. Moreover, they are introduced to numerous such self-checkout stores and planning to enhance the application of artificial intelligence-based checkout in upcoming days. Besides that, they have established an eCommerce store that is efficient in the United Kingdom. Their goods can be seen on their site and in this way people are able to save time through shopping there. This type of the adoption of new innovation might help their brand image to make stronger existence among present generations.

Legal Factors

 In due years, they are included in numerous legal disputes. These have made that complicated for the brand in holding their image at consistent stature with their long existence throughout the century. Moreover, their current legal dispute that happened between Frascati landlord is a dispute. Their transformation in trade laws of Britain has posted Brexit to other legal factors that affect that brand highly. It is anything that a business strategy can be elevating.

Environmental Factors

 They have been promoting themselves with a luxury brand. Because of that, they are largely linked to environmental impacts that their brand has been leaving behind. These people have promoted the idea of a sustainable retail sector on numerous vows and occasions to stay caring of their production process. Having the present climate crisis at hand, the move from the company is largely considered and different other retail brands in the UK have followed suit.