Marks & Spencer External Analysis

ASDA has recently converted its stores to a type of Wal-Mart Supercenter format using the “price-rollback” strategy in its stores.

2. NEXT, a London-based retailer sells mid-priced clothing for men, women, and children as well as house-wares and furniture. NEXT has a Web site store, and operates in Europe, Asia and the Middle East.

3. Tesco is an UK company that runs a chain of over 2,300 convenience stores, supermarkets and hypermarkets in the UK, Ireland, Central Europe and Asia. its found Sir Jack Cohen has changed the format originally founded under his philosophy of “pile it high and sell it cheap ” and is opting for a mid-market format with operations including Tesco Express, gas and convenience store retail, Tesco Metro, small urban stores, and Tesco Extra, its hypermarket store.

IV. External Analysis:

Strengths:

More sub-brands strengthen product offer at M&S

Men opt for convenient locations and an engaging store environment

Quicker responding to fashions with greater efficiency than those new in business.

Award winner in community, environment and global award areas.

Established Brand in Clothing

Streamlining in operations has already been addressed

Weaknesses:

Dependent on behavior of consumers and other factors that our not within control of the company.

Still needs development in integration of stores in terms of retailing format.

Opportunities

Increasing importance of fashion and price sensitivity Men opt for convenient locations and an engaging store environment

M&S Plans to: Accelerate Retail Change Program in stores/reducing Head Office costs, extend the accessibility of Simply Food offer, extend the reach of our &more card, open a M&S Lifestore in Kingston & Thurrock,

Threats:

Hard to beat the price of the value retailers who are moving fast on Retail sales growth is slowing and mens outwear clothing sales are under performing in growth.

ACDS showing gains against M&R in the food industry.

Weakness in over all growth expected further weakness in the corporate sector.

Considerable downside risks

Economy expected to operate below capacity for the next three years.

Conclusion:

Marks & Spencer faces many threats in the coming year however, the company has already responded to the economy in the UK with viable plans for offsetting those threats with opportunity. The company has made plans for dealing with the sluggish and fickle economy of the UK and is attempting to hold its own until the tide of the economy makes a turn for the better.

References

Kripple, Julie (2004) Marks and Spencer Group p.l.c. “Fact Sheet” http://news.ft.com/FTCorporate/Site/html/uk/research/askft.html

Hoovers Online located at: www.hoovers.com[Company Information for Marks and Spencer] retrieved October 18, 2004..

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