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MARKS AND SPENCER CASE STUDY

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Marks and Spencer also known as M&S, is popular as one of the greatest British retail organisations. Main product of the organisation includes clothing and foods. The headquarter is located in London. The company started their journey in the year of 1884. It was started with a stall situated in Leeds, Yorkshire. The company was recognised as Penny Bazaar of Marks. Main products of the stall were household goods, toy, haberdashery and also the business related sheet-music. It was the son of Marks who transformed the business from merely an outdoor stall to an organised indoor shop. You can get custom case study help for any subject from us. The company initiated by launching the products of St. Michael which was remaining a popular brand for a longer run. During the year of 1988, the parent company of Marks and Spencer bought the company of Brooks Brothers. This was known as one of the oldest clothing retailers situated in the United States. The company sold the division during the year of 2001. Researchers have mentioned that, in this present scenario, the company is operating with more than 300 retail shops in the United Kingdom. In this particular study, the paper will analyse the internal and external strengths and opportunities of the organisation. Seek online assignment help from us now if you want to pursue your academic goals. It will be done with the help of strategic tool of SWOT and PESTLE. 

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Marks and Spencer SWOT Analysis

Strength

Weaknesses

  • The company is a well experienced organisation.
  • It is performing for more than 136 years.
  • The company is a recognised brand selling quality products to the consumer market.
  • The feature of multi-nationality is one of its strength.
  • The company serves a plethora of products.
  • The company is observed with declining rate of sales.
  • The company established a common perception that they only target the younger generation.
  • The company performs with a manual procedure. Hence, the products of the brand are generally higher than the rivals.

Opportunities

Threats

  • The company can take the opportunity of Global expansion. They can target different geographical locations to expand the business name.
  • The company only contain one online store. It is not sufficient to beat the competition given by the global e-commerce organisation including Amazon and eBay.
  • The company can implement different segmentation to promote their products.
  • In simple terms, it can be said that, the company needs to renew their consumer segmentation policy.
  • Retail market is always observed with huge competition covering the entire world.
  • Along with this, the company is investing lesser in the procedure of digital marketing.
  • Impact of covid-19 is also another potential threat that has left a crucial impact on the economic field of the organisation.

Strengths

The matrix took more space in demonstrating the strengths of the organisation. Hence, it can be understood that the company has a stronger image in the retail industry covering the entire world. Firstly, the company contains well-experienced labours performing from more than 136 years. This made the organisation as one of the leading retail organisations in the entire United Kingdom. Consumers covering the entire world, recognise the brand by its name. Researchers have mentioned Marks and Spencer has become the second largest popular supermarket within the entire United Kingdom. It has 1463 outlets covering the entire world. The company is also containing one online store that help the consumers to purchased products from a distance. Finally, the company provides a plethora of products to the consumers. We have a team of experienced assignment writer as well.  For instance, it includes the fresh vegetables to designer and fashionable clothes. In this regard, the company showcase a good relationship with different local farmers to provide fresh products to the consumers.

Weaknesses

The company is observed with declining sales from the end of 2019. M&S is observed with declining supply chain procedure that has created much difficulty for the organisation. Secondly, the company established a perception that allowed the consumers to consider as a brand for young generation. However, researchers have mentioned it is completely a wrong perception about the company. Marks and Spencer serve consumers of different demographic features. Third important weakness of the organisation is increased cost due to its manual process. The manual process of the organisation automatically increases the price of the final products. Hence, the common people often search for alternative products with cheaper rate and good quality. There are different brands providing the similar products with cheaper rate and in good quality.

Opportunities

The company can utilise different opportunities of global expansion. Marks and Spencer is already operating in countries including India, Brazil, Indonesia, Brazil, Russia and Poland. However, there are different other developing countries including Australia and New Zealand which will be beneficial for the organisation. It will be helpful for the organisation to increase the brand recognition within a greater number of countries. Along with this, it is already mentioned, the company operates with one single online store. On the contrary, the big giants of e-commerce stores including Amazon and eBay is going far by shifting the main focus on online performance instead of offline performance. Finally, the company need to alter their market segmentation policies to attract different smaller groups of people. In this way, the company will fetch more revenue and win the hearts of millions of people. Wait no more and seek wells marks and spencer SWOT analysis help services from Tophomeworkhelper.com today.

Threats

There are three yet powerful threats for the organisation. Firstly, Amazon and eBay are providing more competition to the company. Apart from these two, other competitors include Tesco, ASDA, John Lewis, Sainsbury, Debenhams, Morrisons, Sports Direct, Next and GAP. Secondly, the sudden pandemic situation caused by the covid-19 outbreak is increasing the challenges for the organisation. The pandemic situation is one of the reasons behind the reduced footfall within the organisation. Finally, the company was alleged with not focusing on the notion of sustainable development by many researchers.

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Marks and Spencer PESTLE Analysis

PESTLE analysis stands for the factors including – political, economic, social, technological, legal and environmental analysis. All the factors help to evaluate the macro environment of the organisation to measure the potential threats and opportunity for the organisation. The following diagram will be helpful to understand the macro environment of the organisation completely.

Factors

Analysis

Political

Political factors include the impact of sourcing costs of a particular nation. Different country contains different policies and regulations to perform greatly. Researchers have mentioned, the impact of Brexit has affected both the political and economic field of an organisation. It has introduced various alterations in the taxation procedure of the organisation. Hence, Marks and Spencer also need to alter their performance according to the imposed policies and procedures. The Asian market also affects the performance of the business due to its continuous political unrest and disturbance.

Economic

Economic factor need to understand the existing conflicts with the smaller retailers covering the entire world. Brexit currency impact has provided an open space of different domestic brands to flourish. Along with this, the covid-19 impact introduced new difficulties for the organisation. Consumers are restricted to move from one place to another and the companies are facing reduced footfall within their organisation. However, Amazon and other e-commerce giants did not face any remarkable challenges during this pandemic situation as they are serving the potential consumers during this situation also.

Social

Marks and Spencer is observed with a huge consumer base that helped the organisation to be considered as one of the top most retail organisation in the market place of United Kingdom. However, they are observed with lesser initiative to acknowledge the importance of the surrounding communities. Their supply chain recalls also creating negative impact on the communal trends. Finally, the company is also associated with a flak of non-fashionable stalls. The community consider the brand as the brand of the young people only.

Technological

Technology is helping the business organisations to promote their names through both the online and offline platforms. Big e-commerce sites including Amazon is utilising the modern technology to establish the notion of omnipresence. A common consumer can find their preferred product at any time and according to their budget. The brand of Marks and Spencer allow the common people to think about their budget before any types of purchase. Along with this the notion of digitisation helps a company to exhibit their concern about their consumers.

Legal

There are limited information related to legal factors that affect the business of Marks and Spencer. In general, the company abides by all the legalities secured by the governments of different countries. They try to build an allies with the government rules and regulations to utilise all the facilities of the operating countries. Considering the developing countries including India, the company has reduced the price of the products that is concerned about the average income of the common people.

Environmental

To maintain their image as a luxury brand, the company needs to consider about the concept of sustainability. It is related to different environmental factors that include the acquisition of food and other products. Along with this, the company also need to utilise the notion of fair trade that help to create a fair compensation for different foreign organisation. Moreover, Marks and Spencer is performing in quite a good way that helps them to maintain a good image in front of the entire world.

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