Value chain analysis for marks and spencer

The frameworks used in the report for investigating the brand in UK are: At first, at its beginnings it encountered a remarkable success, but in time, because of the changes in the market and the inability of using a strategy that match that changed expectation and the lack of competent people to do it, it suffered a decrease. Its current position is improved, the focus on the customers increased along with the chances of succeeding abroad Annual Report and Financial Statements.

Value chain analysis for marks and spencer

An in-depth SWOT analysis that assesses both the internal strengths and weaknesses and external opportunities and threats environment of the company is given.

The paper concludes with a value chain analysis which examines inbound logistics, operations, outbound logistics, marketing, and sales and services. Consequentially, the slight decline of sales and share prices in were followed by steady improvements in both these indicators a year later, thus escaping the hard to reverse grip of discounted prices felt by many other competitive retailers The Marketing Society, By examining these, a company is in a better position to consider likely implications and minimise any future organisation-related risks Makos, In addition, in the past couple of months various macroeconomic issues, falling commodity prices, pound fluctuations and a sudden drop following the Brexit vote caused consumer confidence to drop.

Socio-Cultural Factors Two external factors that affect the retailer include changing values in the population and a generation shift — with the Baby Boomer generation retiring, the company has to redirect its attention to Generation X and the Millennials.

Different generations bring perceptible shifts in consumer behaviour, from the way customers do their shopping, the channels and technology they use to how products are perceived.

As regards its fashion business, the speed with which the latest trends are being communicated to designers has increased as has the speed of transportation. The shopping experience is now largely seamless through the integration of online, tablet, mobile and the physical experience in the shop TaylorWessing, How is the company reacting?

It has moved from a platform hosted by Amazon to its own web platform which was launched at the end of to provide more delivery options and streamlined multichannel services. Environmental Ecological Factors With stricter environmental rules and regulations both at European and international level and increasing consumer pressure concerning business practices, major international retailers and brands have to examine the life cycle of its products from cradle to grave — from the suppliers to end usage and disposal — to be completely transparent about their strategic and tactical environmental practices and be fully accountable.

Continuous investment in the scheme has resulted in numerous Plan A products, a Plan A incubator for the development of sustainable products and services as well as the first UK ecofactory European Commission, With sustainability becoming an increasingly necessary and lucrative strategy, the company is ahead of its competitors in this area.

Legal Factors Health and safety regulations, consumer rights, environmental, antitrust and other legal factors affect the company.

Value chain analysis for marks and spencer

This is an example of the high standards by which the company abides. Losing access to the common market will affect supply chains, the free movement of people, IP rights, international contracts and more. However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors.

In addition, online supermarkets such as Ocado are starting to get the market share of traditional store-only food retailers. As regards its clothing business, the threat of substitutes is high — copying or imitating existing designs is becoming ever easier.

Its premium position is threatened by shifting customer preferences; they might prefer to shop for a label or look for similar quality products offered at a better price elsewhere The Marketing Society, Several shifts in the consumer market such as the increasing price sensitivity of customers seeking classical designs, increasing preference for fashionable items or the disloyalty of UK consumers to British products are increasingly affecting the retailer Cunningham, However, weaker consumer confidence following the Brexit vote Reuters, is likely to affect sales growth and result in the company cutting its prices and focussing on its consumer needs.

The move resulted in a considerable decline in the bargaining power of its British suppliers BBC, and, hence, the bargaining power of its supplier is currently low. Intensity of competitive rivalry In the retail sector in which Marks and Spencer operates, competition is strong and growing — the company is facing intense rivalry from supermarkets chains, homewear stores and fashion retailers.

In addition, the competitive retailing landscape is going through another major transformation — the steady rise of online and catalogue shopping and competitors offering goods of almost the same quality at affordable prices as well as convenient and enhanced in-store experiences for customers Retail Week, The company which is currently years old has built its image on offering a quality value-formoney products strategy has recently started refocusing on a low cost strategy for its clothing business.

The latter has most recently resulted in a 10 year low in the sales of its clothing business Ruddick, A shift from a strong focus on products to a more consumer-focussed strategy has benefited the company.

Yet, these attempts have so far not resulted in a desirable outcome BBC, According to analysts, a steeper fall is expected in the coming years Macalister, The decline in sales lead to the head of the clothing branch of the company, John Dixon, leaving the company in July Macalister, View Essay - Value Chain Analysis - M&S from BUSINESS business m at Westminster College.

Value Chain Analysis Marks & Spencer The value chain analysis singles out the set of specific activities%(10). Marks & Spencer (M&S) is a UK based clothing and luxury food retail company that has been founded in by Michael Marks and Thomas Spencer. The company has over 76, employees in a global level, and deals with over suppliers (Annual Report and Financial Statement, ).

The value shop is an alternative representation of a value chain for a professional services firm which was developed in by Stabell and Fjelstad. A value shop is considered to be a workshop which mobilises resources to solve specific problems.

This report presents a critical analysis of Marks and Spencer (M&S) strategic development history from the s to The external and internal influences on the company’s past, present and future strategies were analysed using various.

Strategic Analysis of Marks & Spencer Plc Introduction This paper examines Marks & Spencer Plc – an iconic brand and one of the UK’s leading retailers.

D. Value Chain Analysis. A value chain analysis is a strategic tool use to identify the activities in and close to an organisation which lead to the creation of a product or a service. The Description Of Strategy Of Marks And Spencer Marketing Essay.

Print Reference this. Disclaimer: The internal environment of Marks and Spencer will be evaluated through value chain analysis, resources and competences framework, and VRIO framework.

and VRIO framework. Value Chain.

Strategic Analysis of Marks & Spencer Plc - Ivory Research