Business Contexts and its Management - Strategic Planning for Marks and Spencer

Business
Context and
its
management
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Contents
PART 1............................................................................................................................................3
2.1 INTRODUCTION.....................................................................................................................3
2.2 External environment analysis.........................................................................................3
2.3 Internal environment competence analysis......................................................................4
2.4 Impact and influence of change and culture.....................................................................6
PART 2............................................................................................................................................8
2.5 Strategic planning.............................................................................................................8
3 CONCLUSION.............................................................................................................................9
REFRENCES.................................................................................................................................11
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PART 1
2.1 INTRODUCTION
The high-end retail industry is continuously changing and COVID-19 has accelerated changes
occurring in the high-end retail industry. Marks and Spencer is the elected organisation for this
report which is one of the most successful high-end British retailor. Marks and Spencer was
founded in the year 1884 and is expanded 200 countries reaching millions of consumers. This
report includes an industry trends analysis using appropriate tools along with recommended
strategic planning for Marks and Spencer to attain profitability after pandemic.
2.2 External environment analysis
The high-end retail industry is facing different changes simultaneously as COVID-19 has
disrupted the entire retail sector (Chen, Eshleman and Soileau, 2017). The main component
which affects the external environment of Marks and Spencer is the increase in digital shopping
and online retail bought about by COVID-19. Consumers have shifted to online retail instead of
physically shopping at retail outlets because of COVID-19 restrictions. This means that Marks
and Spencer need to focus on growth in online retail in order to adapt to consumer shift towards
digital shopping.
Another component which affects the external environment of high-end retail is the
rising consumer demand of no contact shopping. No contact shopping trend has also increased
because of the pandemic as it supports safety and reduces the spread of virus. Finally the UK end
retail sector has to deal with largely uncontrollable pandemic and Brexit caused complications
through supply chain. This has created difficulties in maintaining quick delivery experience for
high end retailers such as Marks and Spencer.
Market Opportunities for Marks and Spencer
There are different strategies which can help Marks and Spencer exploit market
opportunities in the high-end retail industry. The Blue Ocean and red ocean strategies can be
used to analyse the high-end retail industry and identify market opportunities for Marks and
Spencer. The red Ocean strategy focuses on industries which have existed for a long time period
and have intense level of competition (Evans and et. al., 2017).
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In context of Marks and Spencer, the company is currently operating in a red ocean
industry as the high-end retail industry have existed for a long time period with intense
competition from physical retailers as well as E-commerce organisations.
Covid-19 pandemic has increased this competition in the high-end retail industry as
international E-commerce companies such as Amazon are also offering high end retail products
Marks and Spencer need to move on from the reduction industry of high-end retail as there are
very low market expansion and development opportunities in this industry.
Identification of demand, which is not existing and expanding industry boundaries is the
focus of blue ocean strategy, which helps the company develop growth in uncontested markets
instead of fighting with existing companies in the red ocean industry (González-Rodríguez and
et. al., 2018). The rise in ecommerce shopping for high end retail products In the high intensity
of the competition in traditional high end retail industry, it is important that Marks and Spencer
adopt the Blue Ocean strategy by expanding industry. Marks and Spencer can expand industry
bold leaders of the high-end retail sector by offering differentiated consumer service through e-
commerce retail and innovative product portfolio, which meets the constantly changing
consumer requirements.
This can be done by improving delivery services and creating a strong supply chain so
that consumers are able to gain option of trying the apparel products before purchasing. In
addition to this investment in virtual reality and augmented reality trial rooms can also help the
company provide consumer services which help them try their products before purchasing. This
can, reinvent the whole high-end streets to shopping experience for consumers and deliver them
innovative value (Grayson and Hodges, 2017). Marks and Spencer will be able to create a blue
ocean market with the help of Innovative technology and better supply chain management.
2.3 Internal environment competence analysis
VRIO framework
Resource Valuable Rare Imitable Organized
Distribution
system
Yes No No No
Human
resources
Yes Yes No No
Product Yes Yes Yes No
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