Competitive Environment Analysis of Mark and Spencer

BUS3005 SM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
LAUNCHING INNOVATIVE PRODUCTS..............................................................................4
DIFFUSION INNOVATION THEORY.....................................................................................4
SWOT ANALYSIS.....................................................................................................................6
INFLUENCE OF CSR GOVERNANCE....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The company marks and Spencer first opened in Leeds as a grocery story in 1884. The
company is now known for their retailer product and is now the 2nd largest retailing brand in UK.
Their headquartered in London now and are specialized in selling clothes, home products or food
items. The company has currently approx 1000 stores in UK and out of by which 600 are
dedicated to sell food products. It also offers the online food delivery service through a joint
venture with Ocado. The company has a global presence and have a good market share in
international market. The company was initially known as Marks And Sparks. The company
made its reputation in early 20th century which has a policy that the brand will only sell the
British items or products. The company main emphasis is on the quality of the product rater than
the price. The company first international expansion was in Canada in early 70s.
The company usually operates in the market of retailing in grocery. The company does
not hold the huge market share in food sector and has only been around 3%. The company Mark
and Spencer has to increase its market share as compared to other brands who are also in the
retail food division so that Mark and Spencer can run into profitability and introduce new food
into their menu and may try to innovate new food items which will result in increase of
popularity of their food division segment. Mark and Spencer finance sector has been brought by
HSBC in 2004 by 100% share capital and is now run as a joint venture. The company is success
in the home country which is UK because Mark and Spencer promote core brand values which
are quality, service,trust and innovation. These elements or values have remained constant from a
very long time. The company has a sheer presence in the country and around the globe as it has
alone 300 stores in the country and have a expansion in around 30 countries (Omoikhudu,
2017).
MAIN BODY
LAUNCHING INNOVATIVE PRODUCTS
The company has launched their online clothing collection brand and this was a huge
success because of the factor that internet services are available 24×7 and the physical stores are
time bounded and that resulted in increase in number of sales as compared to the stores. The
company has a tough competition in online clothing and had an over the head edge on the basis
of their customer support. Mark and Spencer provide their employees a much higher payroll as
compared to any other retail company which affect in increase in loyalty of the employees