Marks & Spencer: The

Phoenix Rises

Introduction

1975: Acquired two retail chains in Canada

1985: M&S charge card introduced
1994: Listed as UKs most profitable retailer
1996: Restructuring of board and release of
Queens honors list
1998: Financial crisis and fall in retail sales
2000s: Reconstitution of leadership team,
minimization of St. Michaels brand, major
appointments, launch of Perfect Campaign
and CUBE recovery plan

 Basic facilities in stores

Limited investment in inventory
Inefficiency
Frequent restructuring and layoffs
Catering to too many segments
High time to market

Strengths

Opportuniti
es

High Quality
Narrow range
Good value
Partnership with all stakeholders
High turnover for apparel

Weaknesse
s

Threats

Introduction of charge card in 1985

Investment in IT
High growth in food and financial services
Acceptance of general credit cards
Convenient locations for food stores
Bringing influential people onboard
Attention to youth and diversity

Low cost and high quality goods by competitors

by outsourcing
Increased spend on consumer electronics
New competition in womens clothing

PEST
POLITICAL:
-Asian and UK financial crisis
-Release of queens honors list in 1996
-Internal rivalry among board members

ECONOMIC:
-Low economies of scale due to high labor
intensive product
-High interest rates
-Increasing competition for cheap products
with high quality
Unsuccessful acquisition of Brooks Brothers
and Kings Super Markets

SOCIAL:
-Strikes and unemployment
-Increased inclination towards consumer electronics
-Media frenzy over possible takeover contributed to
firms weakening position

TECHNOLOGICAL:
-Large investment in IT
-Acceptance of General as well as M&S Cards