Case Study on Marks and Spencer
Company Name: Marks and Spencer
Subject: Strategy Analysis and Implementation in Marks and Spencer
Marks and Spenser, no doubt, is one of the world’s best clothing brands. Over the period of last 131 years, this business has grown from a stall in a street to one of the world’s largest clothing brand. In this memo, we are going to shed light on the success of their strategies. This analysis of the implementation of past and present strategies will help us better understand the future planning and implementation needs of the company.
There are some resources and capabilities that formed the basis of Marks & Spencer’s (M&S) competitive advantage in the core business. M&S key competencies led to their development of a robust model, outstanding high-quality control and great customer care. Even so the strict managing composition proved adamant in adjusting marketplace disorders: plans and procedures built by top management weren’t trying to be changed or modified by lower management.
In addition to great success in the clothing industry, it has also been successful in getting the competitive advantage in the food industry. The reasons behind this new launch was the fact that they had been able to provide their customers with the best quality products in the past. Due to this repute, they managed to reserve a great deal of brand identity in the eyes of their customers.
One of the techniques employed by M&S from the start was to earn goodwill. The quality of the products, customer’s requirements and satisfaction of customer were the key pivots of M&S strategies that guided them to competitive advantage and success. These key principles have been replicated in each and every store and facility of M&S which gave birth to the uniformity of operations and products everywhere.
Although the management of M&S kept changing all the time, but the management of M&S did everything with proper planning. For example, they expanded the business after keenly studying the demands of the market. This principle and other such kinds of principles saved them from bearing loss. They entered into new markets, for example, Canada and then France, after proper planning. Another key principle was the consistency of growth of M&S.
Predominantly, the competition in the UK market was so high and it was not easy to maintain a separate and distinguished entity in the market. M&S got so much popularity from the start, but it started to enter new markets after a long time. It started with the Canadian market and then entered into France. These new markets were also full of potential buyers, and due to this reason; M&S also got so much popularity in Canada and France. They, then, entered into other markets of Europe and American. It was their success in these markets that made them think about entering new markets. All market entries had been successful for them.
In light of our understanding of their resources and capabilities, we can recommend that: Intercontinental enlargement should be dealt with utmost care because some countries, like China, India, Bangladesh and Pakistan are providing very cheap clothing around the world. Financing a business is also a big concern. People can be lured by employing rewards and membership schemes. E-commerce is an emerging phenomenon and it can be used to increase sales. Home-wares should be eliminated.
Following is a resource-based analysis to support our recommendations.
|Type of Resource
|Lower Occupancy Cost
|Limited Advertisement needed, no promo sales
|Low turnover 8.7% vs. 20%
|Lower cost and superior quality goods
|Fewer layers of hierarchy
Cynthia A. Montgomery. (1994). Case Study on Marks and Spencer, Ltd. (A).Harvard Business School.Harvard Business School Case Study, 391-089.
Marks and Spencer‘s Website