STRATEGIC MARKETING ANALYSIS

Strategic Marketing Analysis Marks & Spencer



Strategic Marketing Analysis Of Marks & Spencer

Introduction

Intensive competition among firms in the same industry tends to be one of the major characteristics of modern market-led economies caused by the pace of globalization of markets and industries as well as technological developments in areas such as information communication technologies, ( Johnson & Scholes, 2002). It is unsurprising as a result to see firms in many industries seeking to create competitive advantages in response to increasingly demanding customers and crowd markets which are a feature of their markets. Porter's (1980) five forces framework which refers to potential entrants, buyers, suppliers, substitutes and industry competitors provides a useful means of analysing industrial environments in order to assist companies in choosing effective competitive strategies. However due to different features within various industries which can be defined as the collection of organisations with similar technologies and products with markets and customers in common it is vital to be aware of the forces forming change driven models within particular industries, (Hooley, Saunders & Piercy, 2004).There is growing interest in the study of retailing which itself has reflected the growth of the retail industry with Potter (1982) describing the academic study of retailing as 'the Cinderella of the Social Science'. Particularly due to the features related to the fashion (and high-street clothing specifically) retail industry the rapid pace of changes tends to shape the forms of competitive strategies available to UK high-street fashion retailers such as River Island, Selfridges and Primark. The British Retailer Marks and Spencer Group plc is a popular and the largest clothing retailer in the United Kingdom. Marks and Spencer has a global presence and with 760 stores, Marks and Spencer is the 43rd largest retailer in the world (as of 2008 data). This multi-million pound food and clothing retailer has now expanded the operations to house ware and furniture. Marks and Spencer started in 1884. It was at that time only a sole market stall and Michael Marks was the only operator. In 1894, Thomas Spencer joined and the little business of Leeds was renamed as Marks and Spencer. Reputation was however gained by Marks and Spencer in the 20th century. The policy adopted was to sell only British-made clothes and food and started selling them under the brand of St. Michael. There was a policy of refunding cash to the customers in case they wanted to return some unwanted items no matter when they bought those. The company started international expansion in the year 1974. It was marked by the introduction of Asian food. Marks and Spencer opened a store in continental Europe in 1975 and four year after this, the company opened a store in Ireland. Acquisitions by Marks and Spencer began in 1988 when the company took over Brooks Brother, a clothing company of America and Kings Super Market, a food chain of USA. They were sold off respectively in 2001 and 2006. The fiscal year of 1997-1998 was the period ...