Marks & Spencer Case Study

Marks & Spencer

Case Study

Introduction........................................................................ Page 3

EXTERNAL ENVIRONMENT

1.0 PEST Analysis................................................................ Page 3

2.0 Porters Five Forces Model................................................. Page 4

INTERNAL ANALYSIS

3.0 Auditing the Resources of M&S.......................................... Page 5

4.0 Value Chain Analysis....................................................... Page 8

5.0 Analysing the Culture & Stakeholders in 1998 ....................... Page 11

6.0 Evaluation of M&S´ Strategy............................................. Page 15

6.1 SWOT Analysis..................................................... Page 16

7.0 Recommendations for future Strategies................................. Page 19

Introduction

Marks & Spencer p.l.c. is one of the most recognizable clothing retailers in the UK. The company´s stores also sell food and homeware and provide financial services. M&S has enjoyed a consistent record of success and profitability since its origins, with a worldwide reputation for its innovative, high quality products and competitive prices. However, M&S´ prestige and outstanding long-term performance have been hit in recent years by falling sales and declining customer satisfaction. The aim of this report is to identify the key factors that allowed M&S to outperform its competitors up to the mid 1990s.

Swot analysis

Swot analysis image

Illustration of Porters 5 Forces. Illustrates arti...

This assignment also explores the reasons behind M&S´ recent crisis and it suggests a number of strategies to regain competitive advantage and to deal with the challenges M&S faces, currently and into the future.

Question 1

Identify M&S´resources and capabilities up to the mid 1990s and hence the sources of competitive advantage

We can use two different approaches to identify the main drivers of M&S´ success up to the mid 1990s, as well as its recent crisis. A well-known approach is to examine the external environment in which M&S operates. PEST analysis or Porters 5 Forces model are common techniques associated to this traditional approach. Although the external environment has an indisputable impact upon M&S´ performance, it is also important to carry out an internal analysis of the organisation. This second approach examines M&S´...