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Marks and Spencer Case Study SWOT & PESTLE analysis
Marks & Spencer is a multinational retail firm based in the United Kingdom. The company was founded in 1884 by Michael Marks and Thomas Spencer. Ever since then, the Marks and spencer brand has opened about 1463 locations throughout the world. The company's headquarters are based in London.
Home products, food and consumable things, and clothes are among Marks and Spencer's most popular items. Products are sold under the company's own brand name. M&S is a firm that is traded on the London Stock Exchange.
The following contents include SWOT and PESTLE analysis of Marks and Spenser. For a good case study on Marks and Spencer, one must first comprehend the internal as well as external environment of the company.
SWOT ANALYSIS OF Marks and Spencer
SWOT analysis is a strategic planning technique for identifying strengths, weaknesses, opportunities, and threats in company competition or project planning.
The following are some of Marks & Spencer's most notable strengths:
Marks and Spencer has a reputation for offering high-quality products to its clients. As a result, when individuals go shopping in the UK streets, they prefer to go to Marks & Spencer. Marks and Spencer is the second-most popular supermarket in the United Kingdom, according to Statista.
Marks & Spencer markets them as a high-end value offering aimed at the high-end market. The retailer's products, particularly in the clothing line, are trendy, modern, and sophisticated, in keeping with their brand image. Customers know what to anticipate from a Marks & Spencer store as a result of this strong branding.
Marks & Spencer has its own labels in practically every category, in addition to retailing premium brands like Louis Vuitton, Vero Moda, and Versace. Per Una, North Coast, Indigo Collection, Autograph, and Classic Collection are some of their well-known private label trademarks. These private brands have been successful in familiarising clients with the Marks & Spencer brand and improving brand awareness.
Marks & Spencer has offered a huge number of well-known designers from various brands a presence in its stores. North Coast, Autograph, Collezione, Big & Tall, Blue Harbour, Indigo Collection, Portfolio, Classic, Per Una, Limited Collection and many others are just a few of them. M&S has become stronger than ever as a result of bringing several brands under one roof.
Throughout its 150-year history, Marks & Spencer has remained competitive primarily due to its innovative attitude. Marks & Spencer associates innovation with creativity and communication, and employees at all levels are encouraged to think outside the box and offer suggestions whenever they see fit. This unfettered spirit of innovation is the company's greatest asset.
Around 80,000 people work for Marks& Spencer in their showrooms and offices around the world. Because the organisation values diversity, it employs people of many nationalities, religions, and genders. The company is also an equal opportunity employer that prohibits any form of discrimination in the workplace. All of these aspects ensure that employees are culturally aware and unaffected.
Marks & Spencer includes both physical and online stores, as well as franchising opportunities. In the United Kingdom, the company runs 910 full-line stores, 220 owned and 310 franchised Simply Food Stores. Additionally, they offer an online store where clients from all over the world may purchase for Marks & Spencer products.
Not able to penetrate in foreign markets
Marks & Spencer's main markets are Europe, the United Kingdom, and the United States. Despite opening stores across Asia and the Middle East, they have had little success in attracting clients, owing to the fact that the majority of their designs are western rather than traditional.
By the end of 2019, sales in several M&S outlets were on the decline. It was due to a faulty supply chain system and a lack of product availability. During the 2017 Christmas season, the same issue happened: the company was unable to meet the required demand for food and clothing products. It had a negative impact on the company's image.
Low customer satisfaction
Marks & Spencer consumers are frequently dissatisfied, and there have been several complaints about the returns policy as well as the in-store experience. As a result, brand loyalty has declined and brand switching has increased.
Scalability of the Supply Chain
Marks & Spencer's supply chain scalability is one of the company's main flaws. Despite the company's efforts to provide global access to its items through its online store, it has been unable to scale up its supply chain to deliver to all places worldwide. They've tried to reach out to Asia, but due to inventory issues and unsold product, they've had to rely on end-of-season deals to clear out their inventory.
Marks & Spencer is an international retailer with stores in India, Russia, Brazil, Poland, and Indonesia. Now is the time for the company to expand in those countries. It means that the brand must take an active position in those countries by opening more and more branches.
Marks and Spencer has an online store as well. However, when we compare the company's position to that of other world's major online retail e-commerce stores such as Amazon or eBay, the company falls behind. M&S, on the other hand, is much behind the competition. Despite the fact that the organisation is well-established, experienced, and has a strong brand identity.
Because individuals are getting busier and prefer to avoid public and crowded venues, ecommerce retail is the way of the future for purchasing. As a result, the corporation should concentrate on expanding its online store. In fact, M&S just announced that it will be bringing its clothes and home product lines online. If you are looking for such relevant case study factor. then take help from Allessaywriter.com's professional writers.
The technique of segmenting the client market into separate groups based on similar groups is known as market segmentation. When we look at M&S's policy, we can see that it is based on the same premise of opening megastores worldwide. If the organisation adheres to the customer segmentation policy of offering items depending on consumer needs.
The company might benefit from a customer segmentation approach in a variety of ways. Small stores mean lower rental costs and, as a result, higher profits, because administration and maintenance costs are lower.
The retail market in the United Kingdom and around the world is becoming increasingly competitive. Amazon, Tesco, John Lewis, ASDA, Debenhams, Sainsbury, Sports Direct, Morrisons, Gap, and Next are some of Marks & Spencer's key competitors. Because the competitors are so strong, if the company does not adjust its approach, it would gradually fade away from the market.
Different countries have different laws, which are always changing. Because liability rules vary by country, Marks & Spencer could be vulnerable to a variety of liability claims if regulations in those areas alter. Given the diverse regulations and constant fluctuations in product standards in those areas, the corporation may face lawsuits in numerous markets.
Rising pay level
The rising salary level also poses a concern, especially in light of China's $15-an-hour wage hike. Marks and Spencer may be put under a lot of stress as a result of this.
Because the company operates in a variety of nations, it is subject to currency fluctuates, which are exacerbated by the turbulent political atmosphere in a number of markets throughout the world. This poses threat to the company.
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ü Free trade
ü Liberalization in east Europe
ü Rising income
ü Discounts rivals of M&S
ü Changes in consumer preferences and lifestyle
ü Internet has developed as a powerful tool. Thus give rise to e-commerce.
ü Self-check-out facility
ü Follows regulations for standard packaging, eco-friendly measures and materials and even in process of manufacturing.
ü Conducts waste management
ü In this regard, it implements a plan called Plan A for sustainability.
ü Conducts fair trade
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