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Swot Analysis Of Marks And Spencer

1054 words - 5 pages

Marks and Spencer, which is a public limited company in the London Stock Exchange list, is UK’s one of the leading retailers which sells great value and high quality food, clothing and home products. M&S, founded over 125 years ago, at present have around 21 million customers visiting its store each week. M&S source their products from over 2000 suppliers round the globe and have over 78000 personal working in UK and 42 other territories globally. The core values of M&S are quality, value,
service, innovation and trust (Marks and Spencer group plc 2011).
The group is one of the leading brands in the United Kingdom in the category of clothing, food and home ware. A general SWOT analysis ...view middle of the document...

From being the cheaper food retailers, Marks and Spencer rose to provide quality in food items thereby the group were successful in improving the perceptions of value for the food customers. The company introduced about 1800 new products in food and is considered as the UK’s leading high quality food retailer which helps the group to attract much more customers.
• Strong brand equity.
The key values of the company are known to be Quality, Value, Service, Innovation and Trust. M & S stands for high quality products at reasonable price offerings. This improves its brand image and assists company to attract customer’s loyalty and to improve repeat purchases.

Weakness
• Competitive disadvantage factors from the industry opponents (e.g. Tesco).
Competitors of M & S benefit in terms of Supplier power, IT, Supply chain and other systems. Store layouts of the competitors are comparatively suitable and the traditional inconsistent legacy stores of Marks and Spencer for effective customer demands.
• Geographic distribution.
Majority of company’s revenue, about 92% in the financial year 2007, is from the UK markets which clearly brings competitive disadvantage for the M & S group. It makes the company vulnerable to changes in UK market conditions. On contrast, its competitors’ wider global geographic distribution of market has assisted in better economies of scale and revenue profile.
• Sales decline in the UK.
The recent crash in the global market had added more pressure on the company’s existing lower sales in the UK of 1.1%. As the UK market holds 92% of the total share of revenue for M & S, this decline in sales will affect their economy adversely.

Opportunities
• Online sale promotions.
Previous years witnessed significant growth in M & S sales online for about 18%. Consumer preference have shifted towards better deal with improved delivery speed and fulfilment together with quality products of reasonable price have led to improvement in online sales. The company delivers products of customers’ choice through M & S Direct which is an asset to the group’s revenue.
• Expansion in Indian and Chinese markets.
The growth of Marks and Spencer with its expansion in the fast growing economies of China and India is a strategic step that can actually boost the existing economic returns. China , which is...

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