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Introduction:

Introduction:

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Published by: raina1988 on Dec 20, 2009
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05/10/2013

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Introduction:
Marks & Spencer is one of the biggest high street retailers in UK with over 600 UK storesand nearly 303 stores in 41 territories. The home country of Marks and Spencer is UnitedKingdom. The head office is located in central London at Waterside House. As thecompany’s principle is to value quality, innovation, personalize service and security to their customers in a very unique manner which builds the trust of the customers towards thecompany.M&S offers stylish, high quality clothing, home products and outstanding service especiallytheir own food brands since 125 years. Through massive supply chain including more than2000 suppliers globally we have used the analytical to tools which are explained as follows:
Pestle analysis
Political Analysis:
In spite of cultural differences M&S have functioned very efficiently in terms of macroeconomic policies and also improved good relations with other countries to expand the business.
Economical Analysis:
 
As the current scenario the economic conditions are adverse because of the recession thereforeM&S is not able to achieve the desired targets due to which they have to reduce their cost of  products and even bargain with the suppliers. ( )
Socio-cultural Analysis:
M&S adopt certain social and cultural aspects which vary from country to country in terms of their lifestyle, values and beliefs. This leaves the impact on diffusion of products onto themarket. As changes in the lifestyle results in both opportunities and threats to the firm.
Technological Analysis:
M&S uses advance technology in order to serve their customers such as enhanced onlineshopping were customers can make choices from various products that are available in relation toclothing, food etc. This provides flexibility in running the business more efficiently.(http://www.oxbridgewriters.com/essays/marketing/marks-spencers-corporate-objectives.php
 
). 
Environmental Analysis:
M&S has developed plan A which makes the company to fight against climate change, wastereduction etc. This is the first company that has removed the artificial colours from the fooditems. They give points to the customers if the customer uses their bags while shopping. This waythe M&S is environmental friendly.
 
Legal Analysis:
M&S has high holding status, so this will influence the environmental regulation with which induties must comply. M&S has standard accounting methods. M&S is listed in on London stock exchange, they are founding member of business in the community
.
Industry life cycle period
There are 4 phases in the life cycle, the M&S had started from introduction phase it had taken along time to developed and move towards the growth phase. In 20
th
century the growth of M&Swas strong enough to compete in the market. The company is still in the growth stage as they areinnovative and creative in terms of developing new products and because of this only theyhaven’t reached to the maturity and decline stage.
Five Forces
Threat of New Entrants: 
In 19
th
century; there were new entries like Asda, Tesco, and Sainsbury. Even Zara and Top Shopwere entering the market. So M&S faced high threat from them and started avoiding productdifferentiation & decreasing the cost through mass production.
Bargaining Power of Buyers: 
M&S bargaining power increases because the quality and the price of the products are hightherefore they cannot hold the customers as Tesco, Asda and Top- Shop do so they havecome up with quality products with cheaper prices to attract the customers, thus M&S is becoming more price sensitive.
The Bargaining Power of Suppliers: 
M&S bargaining power is very high as it is known for its quality & value products. So supplier can threaten the market by increasing high price or decreasing the quality. As M&S is doing partnership widely which increases bargaining power of supplier.
Threat of Substitute Product & Service:
 
Due competition substitute products & services are available, M&S is having brand name whichis valuable, but substitutes are also available like Tesco, Asda, Manchester United, Zara and TopShop.
Intensity of Rivalry among competitors:
 
The Rivalry among the competitors is strong, In case of M&S, there are many competitors sothey use tactics like sales promotions, advertising, product differentiation and diversifying thestructure by introducing other brand products.
 
Threats
Due to high competition, the products substitution is possible & this will further reduce the priceof product e.g. Primark. M&S products are value perspective but there are very small groupwhich constitute value perspective and consumer perspective products as it is having value added pricing methods as other retailers use market skimming method.
Opportunities
The competitive advantage helped the company to expands its business keeping in mind thefuturistic vision in terms of diversification to help market development from the existing products by welcoming new products and make them exist in the global market this denotesthe expansion
 
matrix in terms of M&S as the company is on the edge of establishing its brandacross the territories.
External Analysis:
From the above mentioned analysis one can state that M&S produces the superior quality products and thus M&S can sustain in strategic market for long time but have to be protectivefrom competitors. M&S has strong advertising strategy
(example: clothing).
Mostly there sales promotions are done by online purchases and creating awareness in all the public places like tubestation, train station, bus station etc. Buyers of M&S are gradually falling because the Tesco andSainsbury are providing quality products with cheaper rates. So through all this we can say thatM&S needs to take quick decision regarding various polices and strategies that they arefollowing.
Strategic Alliances
Economy of scale
:
In case of M&S economy of scale it uses the concept of mass production and through thisthey could reduce the cost per unit as well they raise more revenue. As it is one of thetrustworthy brands it had to keep hold on efficiency.
Economy of scope
:
M&S has varieties of products in the different range of stores and locations. Thisdiversification of their products and services as this core quality is giving greater opportunityto compete in the global market.
Economy of learning
:
M&S has additional competence as learning of new markets, new customers and new preferences according their previous pitfalls and achievements.(http://www.marketingteacher.com/Lessons/lesson_PEST.htm)

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