Marks and Spencer: Competitive Analysis and Value Chain

Marks and Spencer

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction of Marks and Spencer.............................................................................................3
Background information about M&S..........................................................................................3
Product and services of Marks and Spencer...............................................................................3
Analyse the competitive environment of M&S by applying Porter's Five forces model ...........4
Analyse Porter's value chain of M&S ........................................................................................5
Summarise and reflect on how business can deploy information technology and use
innovative ideas for improving business processes ...................................................................7
CONCLUSION................................................................................................................................8
Reference.......................................................................................................................................10

INTRODUCTION
Introduction of Marks and Spencer
Marks and Spencer is one of the best British multinational retailer which is headquartered
in Westminster, London and this brand is famous for selling home appliances, effective quality
of clothes and food products. It has been formulated in the year of 1884 by Michael Marks and
Thomas Spencer in U.K. This organization is listed on London Stock Exchange and currently
operating 959 stores across the U.K. in which 615 only sell food items. Respective organization
is dealing with large number of product and services so that they have many more opportunities
to attain future goals and objectives.
Background information about M&S
In terms of products, M&S developing their own knowledge and understanding for
offering exact goods which is required by customer's at marketplace (Acuña-Carvajal, and et. al,.
2019). Thus, they are focusing on their each and every product by which they can easily satisfy
consumer's needs and wants through giving them high quality of goods. As this brand deals with
large number of home appliances, clothing and many more so that it increase market value of
respective firm and encourage them to achieve specific goals on time. By having such kind of
background they have opened so many stores in different different place in order to increase
themselves productivity and profitability to attain competitive advantages in an effective manner.
Therefore, by having large number of stores globally, they have opportunities to gain successful
business.
Product and services of Marks and Spencer
M&S is leading British retailer that always bring high quality, great value of food items,
clothing and home ware to large number of people across the globe. Food items of this brand
includes different types of food and taste that directly influence several customers at one time.
This is because respective organization use new techniques and supply chain of their items by
which they can give better quality food of their customers and make them happy. Through
applying innovative thoughts within the food they become more relevant and gain high profits.
On the other side, this brand dealing with clothing and home wares that reflected their sales in a
positive manner (Amran, and et. al., 2016). When this brand saw rise in consumers numbers and
their growth towards purchasing products of this company than their aspiration is to be famous

for effective value of business. Thus, their efforts towards making several kind of home
appliances and fashionable clothes has been increasing day to day. At present time the main aim
of this brand is to become more successful and develop huge competition for others at
marketplace. Sometimes respective firm has faced few issues while manufacturing its goods such
as lack of employs, funds, machines and so on. In order to improve these sorts of issues they
have been developed training and development programmes for their employees so that they
worked effective and able to achieve goals successfully (Johnson, 2016). Therefore, the
effective collaboration of different products have positive impact on customers that maximising
overall sales of respective firm with high profit and sales properly.
Analyse the competitive environment of M&S by applying Porter's Five forces model
This is a strategic tool used by management of the company for analysing industry and
profitability levers. The leaders of M&S uses this model for determining different competitive
forces which affects profitability. These are used for developing strategy and enhancing
competitive advantage of M&S. By evaluating this model effectively, M&S is able to attain
competitive edge in market. There is need for analysing this model in effective manner. This is
an important part for an organisation to analyse the need of competitive advantage that will help
a company to build within market. It is essential for a company like Marks and Spencer to know
it's value within market as in this way, the managers will know what are the segments in which
this company can work. The managers and leaders of M&S have to pay more attention for
analysing market condition. The five forces given by Porters model are explained below -
Threat of new entrants: This is defined as entrance of new entrants in the market for
identifying competitive edge. The main reason behind this is that M&S is taking enormous
capital investments for setting up new and successful retail stores (Kono, 2016). Market of retail
industry is mature and this requires offering of new products in market and gaining competitive
edge. Different major retailers of market are establishing strong brand image. It is helpful in
increasing customer loyalty and trust. Major business people know in what way business should
be done and market share will be enhanced. There is barrier for foreign companies to enter
international markets. Marks and Spencer has good reputation and it has strong image in market.
This helps it to have low threat of new entrants.
Threat of substitutes: In the retail market, there are no substitute of clothes and food.
The threat of substitute for M&S is very low. There is substitution of products offered by M&S