Without satisfying customers businesses cannot run their operations for long time. In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. M&S targets various segments of customers such as the youth, low-income earners, high-income earners, and the elderly. In this book, along with an in depth analysis of the competitive strategies which are Cost leadership, differentiation and Focus, he also concentrates on the firms value chain. However, its main target is women who earn a high income. For any brand to be popular among customers, it does not only need to be marketed on popular sites like Amazon.com but it also needs the development of an excellent brand image. This is IvyPanda's free database of academic paper samples. This assessment on Marks & Spencer Companys Marketing Environment was written and submitted by your fellow Marks and spencer is a public limited company because they sell shares to the public. In order to take competitive advantage, Marks & Spencer should have good relation and understanding with their buyers and suppliers. In-text: (Sanchez and Heene, 1997) Your Bibliography: Sanchez, R. and Heene, A., 1997. The reason is that it aims at delivering quality and affordable products and services to all its customers over the next three years. M&S uses email for advertisement purposes. Our academic experts are ready and waiting to assist with any writing project you may have. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Consequently, their perception of M&Ss brands has been strengthened. https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/, IvyPanda. It is true to say that under globalization, firm will have to meet competitive environment which for some company, it is hard for them to survive, but like what we always know: "competing makes developing" so they . The reason is that the closure would negatively affect customers loyalty to the clothe ware products of the Organization. Marks and Spencer (M&S) has a tough and competitive external environment. They should also internalize the Organizations core values and embrace them at all times. According to Mr. Robert Swannell, who is the Chairman, the Organization is currently better positioned than it was three years ago. The reason is that the Organization always aims at treating all its customers equally. However, the company is vitally investing in online business marketing to boost the sales of home-use products. As a result, it is important for Organizations to ensure that they have elaborate communication strategies to reach their customers effectively. The reason is that many people use their e-mail addresses to register with Twitter and Facebook. Just like other multinational corporations, M&S was not exempt from the effects of the recession (Slideshare.net: Marks & Spencer strategic analysis 2015). This includes having an organisational culture which promotes diversity, inclusivity, personal development and respect. 0 1 0. We will write a custom Assessment on Marks & Spencer Companys Marketing Environment specifically for you for only $16.05 $11/page. (2021, April 26). In order to achieve competitive advantage M&S needs to focus on the following steps: M&S is offering different kinds of products like food, clothing and furniture. M&S operates in dynamic social, political, and economic environments. Also there will be, analysing the two companies in terms of size and perception, in the sense of the growth of both companies over the years and perception on how the Tesco and Sainsburys are perceived by their customers and also themselves., Marks & Spencer have recognised that they havent responded quickly enough to consumers changing needs and preferences. 1. The Organization has rules of conduct at the workplace. Customers at M&S stores can leave their feedbacks freely. How Sainsburys have capitalized on their sales. In 1985, Harvard Business School Professor Michael Porter published his new book The Competitive Advantage which focuses the organisation internal environment. The store rotation programme plans to modernise stores and create a retail environment that customers want today. We're here to answer any questions you have about our services. It can be said that by means of organisations competitive strategy, it can achieve an upper hand in the business market over its rivals. Focusing on all the market segments would also enable the organization to improve customer loyalty and its brands, which would be sustainable in the long-term (The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014). It also operates a website where it posts business information for access by potential customers (M&S: student information 2010). There are three broad categories of clothing articles and accessories as defined by the store management itself at M&S. these three categories are different in the sense that they have different levels of various features attached to them. It is associated with lifestyle and Retail since it operates in the retail sector. Marketing is largely concerned with strategies to ensure the sale of product which include influencing consumers to buy product by altering, design, pricing, the image of the product in the market, promotion and the quantity produced. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! As M&S has more almost 800 stores throughout . Specific needs of chief executive officers: The following are the ideal communication channels for all the segments: Organizations to realize their mission and vision, need to take care of the welfare of their employees. HelpMe.com: Marks & Spencer strategic analysis 2015, Web. Communication is an essential component of business strategy because it enables organizations to reach their customers. The price sensitivity of the customer has produced more competitive environment. Human resource cannot be imitated and helpful to firms value. M&Ss e-business model is focused on marketing and sales (Strinfellow 2010). In clothing each business has to modernise the clothes according to the latest fashion. M&S markets products for both sexes. Marks & Spencer launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. The second most important thing is price control. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. VRIO: From Firm Resources to Competitive Advantage. The friendly social environment has been achieved through the sensitivity of the Organization to the needs of the local customers as well as the provision of very friendly goods and services at affordable prices. Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. Public spending cut is another political decision that is a big hurdle in the business growth too. The main reason for not to attract the new customer is high price and old fashioned clothes. Facebook has a function that allows people to like the Organizations page by clicking on the like button. Do you have a 2:1 degree or higher? It also has to do with the choice of colors for the products and how the products are packaged. -This school emphasis on analysis and calculation can be a very strong support to the strategy development process M&S is making investment in customer services and assistance section. 3.1 PESTLE Analysis It stands for Political, Environmental, Social, Technological, Legal and Economical factors that are within environment. Company Overview The motivating factors of the customers in these segments include differentiation and positioning. However, in the fiercely competitive market environment, operational management strategies are quite important for retailers to obtain a competitive advantage and access to greater income. The main aim of marks and spencer is to maximize profit and become the worlds most sustainable major retailer by 2015. The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. The aim of this report Is to identify the key factors that allowed M&S to outperform its competitors up to the mold asses. Responsible Sourcing & Human Rights in Foods, Responsible Sourcing & Human Rights in Clothing & Home, Sustainability Report 2022 - Resetting Plan A to Deliver a Net Zero M&S, Results, Reports, Webcasts & Presentations, M&S Teams Up With Agrisound To Boost Pollinator Activity On British Farms. IvyPanda. The company's stores and outlets are strategically located across London. Media has played a big role in communicating new Fashion and price comparison to the customer. The penny bazaars were a huge success . Marks and spencer 1. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. External environment in which M&S operates can be identified through PESTEL analysis that shows what is exactly happening outside the organization. Pearson & Saunders 2013, Strategic management of information systems, John Wiley & Sons, Hoboken. Reinventing strategic management: New theory and practice for competence-based competition. M&S has placed itself in a strategic position to effectively compete with its rivals. The Organization, therefore, needs to establish a division to deal with the designing and production of the customized products for customers who need such products. In food industry Tesco, Iceland are the main competitors of M&S. On the side M&S has earned reputation in meeting the customer demand. Your privacy is extremely important to us. PESTEL analysis gives us an idea about the external environment of M&S. Introduction of products is only possible with best marketing and advertising approaches. Managing Supply Chain Management: Coles/Woolworths vs. However, its general merchandise did not produce impressive results as expected (HelpMe.com: Marks & spencer strategic analysis 2015). The objective of M&S has always been to transform itself into a leading player in the retail industry. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. M&S will also clarify the position of its sub-brands, moving them from labels to real brands, According to him In Food, M&S will gain a clear market position as a specialist high-quality retailer, inspiring customers with unrivalled quality and innovation. Boosting personalized selling (Thompson & Martin 2005). In an effort to increase audiences for various advertisements, Twitter has a tailored audience feature that enables those with email addresses to get updates from Twitter via their e-mail addresses. Marks and Spencer should focus on developing economies throughout the world for expanding their business and gaining sustainable competitive advantage. Currently M&S is regaining its better position as economic conditions are moving positively. The reason is that those women have expressed a lot of interest in womens outfits which are currently sweeping across the UK and in other markets. Customer service staff members are the representative of any company, Marks and Spencer Customer Assistance is the face of corporate staff that provides high quality services with their commitment and enthusiasm to make sure they deliver the service according to the customers expectations. Iraq war was one of the biggest cause of slowing down the UK economy. 2021. The retailer focuses mainly on manufacturing of the clothes, furnishings and homeware accessories, luxurious food. RECENT STRATEGIC DEVELOPMENT HISTORY 2.1 Background Marks and Spencer, commonly referred to as M&S was founded by Michael Marks who opened a penny bazaar at Leeds market stall in 1884. The initiative was designed to incorporate the customers in making decisions about product development. Iceland is the big player in food market and captured the big market in UK and emerging as a main rival for M&S. The analysis as a whole, however, has a number of limitations, including the fact that the companys financial factors for 2011 are not available. Marks and Spencer will use social and electronic media to target its audiences as companies are increasingly using them in the modern competitive environment (Vizard 2015). Today, we'll discuss the swot analysis of Marks and Spencer. 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