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Outline
INTRODUCTION
History
Aim
External Environmental Factor
Competitors
Impact External Environment
Major Challenges
Porters Five forces
Theory of retail development
SWOT analysis
Strategic options
Resources and Capabilities
References
Company introduction
multinational retailer.
M& S operate in across more than 40
countries
M&S are specialists in the selling of clothing
food and luxury products
History
Marks & Spencer was founded in 1884 as a
Political
Economical
Social
Technological
Legal
Environmental
Political Factors
As business taxes such as co operation tax has remained
the same for the last 5 years this will not affect M&S.
The introduction of new business restrictions policy's.
Environmental regulations such as air pollution from
farming could affect M&S supply chain.
Economical Factors
Credit is very hard to obtain for consumers however M&S
Social Factors
Changes in UK population shows that there
are more retired people than children.
There is an increase in the demand for
organic food.
The UK is becoming very multi-culture.
Consumer attitude towards food is changing
as they have become more health conscious .
Technological Factor
Technology is rapidly changing and very
Legal Factors
Competition laws
Consumer laws
Employment Laws
Advertising Standards laws
Health and Safety laws
Environmental Factors
Global warming is increasing.
The potential impacts of climate change is affecting
http://
news.sky.com/story/1164063/m-and-s-upbeat-despite-clothing
-sales-falling-again
Impact of external
environment
Change in operation
Change in customer trends
Changing Buying power
Opportunities for competitors
New user Technology
(Grundy, 2006)
For example information technology completely
changed the way of work, customer behavior and life
style as well.
Future challenges
M&S needs to start outsourcing suppliers in
Competitive rivalry
M&S have different competitors as they have
Bargaining power of
suppliers
M&S have a lot of power over supplier as a lot
Bargaining power of
customers
Luxury products which M&S sell such as
Threat of substitute
products
For M&S threats of substitutes are high.
Other stores such as Next , house of Fraser
SWOT Analysis
STRENGTHS
.Good quality products
.Diverse ranges of
Products
Largest retailer in UK
Increase turnover and
trading profits
OPPORTUNITIES
Introduce new products
Provide more organic
goods.
Build up more alliances
Develop overseas
supply chain
WEAKNESSES
Losing young customers
.Perception of High Prices
Customer disinterest
Environmental issues
Substitute products or
technologies
THREATS
Instability in the prices of
raw products
New legislations
Economic recession
Low cost retailers
Extreme competition
Strategic options
Consider the benefits and impacts those can
new point-of-sale
Building a strong multichannel capability
Major technology-driven change projects
of supply chain
2. Primary Activities: the primary activities take in hand
References
Grundy A. N. 2006. Competitive strategy and