Trends in Retail and Analysis of Organization: A Case Study of Marks & Spencer

This report discusses the recent trends in the fashion retail industry, with a focus on Marks & Spencer. It includes an analysis of the organization using SWOT and Porter's Five Forces models, and provides recommendations for improvement.

FY028-21S2BNT:
INQUIRY BASED
LEARNING

Table of Contents
Introduction.................................................................................................................................................3
Trends in Retail...........................................................................................................................................3
Analysis of Organization.............................................................................................................................4
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Fashion industry is growing significantly in the current period of time in terms of new
and emerging trends that will ensure future enlargement of the companies significantly. In
addition to this, fashion industry is useful in terms of ensuring growth of the economy in an
efficient manner (Bulović and Čović, 2020). The present report is based on Marks & Spencer
that is a well-known British brand that is known for high-quality fashion across the world. The
report will include recent trends related to fashion industry along with suitable recommendations
to make further improvements in business practices.
Trends in Retail
Fast Fashion: Fast Fashion is an imperative approach of designing, manufacturing and
marketing method which significantly focused on producing high volume of clothes. It is related
to producing high-end catwalk designs & celebrity look by producing them in bulk quantity in
order to grab the advantage of latest fashion trends. However, the concept of fast fashion is not
suitable for environment as it creates huge wastage and impact environment, local communities
and fashion designers as well. In current period of time, fast fashion has become a latest trends as
people are likely to demand fashionable products which are available quickly at cheap price
(Kautish and Sharma, 2018). In this regard, Marks & Spencer is a fast-fashion brand that offers
creative stylish clothes based on the current fashion trends. Here, following the fast-fashion trend
is useful in terms of gaining the attention of existing & potential buyers effectively.
Online selling: Here, online selling has also become an imperative trend in context of
retail industry. Nowadays, people are likely to buy the products using different online mediums.
They are likely to use various platforms such as Face book, Instagram, YouTube and more in
order to promote the products in an efficient manner. After COVID-19, the trend of online sell is
increasing rapidly as now people are likely to avoid to visit at public place for shopping rather
they prefer to buy products through online platforms (Nayak, Akbari and Far, 2019). Due to this,
the demand of online products is increasing significantly that will help in terms of increasing
overall profit margin efficiently. In context of Marks & Spencer, they are also likely to use
online shopping platforms to fulfill the demand of buyers in an appropriate manner. Further,

online shopping is also helpful in order to increase the revenue and profit margin of the company
in best possible manner.
Interaction retail experience: With increasing trends of social media, people are likely
to feel comfortable while buying products through social media which further opens up a new
way of maintaining interaction with potential buyers using such platforms. In order to leverage
the respective trends, companies are likely to invest in livestream and virtual shopping. These
investments are helpful in offering better & enhanced experience to customers so that they can
make suitable purchase related decisions (Fernie and Grant, 2019). To interact with customers,
organizations are likely to use videos, photos and more. They post necessary videos on their
social media handlers in order to maintain effective interaction with potential buyers. This is
helpful in attracting more and more new customers in order to get better outcomes in future
period of time. By using social media, it is possible to get feedbacks and reviews of buyers so
that necessary improvements can be done in future period of time to attain pre-defined goals
successfully. In context of retail industry, there is high competition in marketplace (Fares,
Lebbar and Sbihi, 2018). In reference of Marks & Spencer, they also make sure to maintain
proper interaction with customers through social media platforms, websites and more. This is
helpful in getting feedbacks and reviews of buyers to make appropriate improvements for
attainment of stipulated goals.
Analysis of Organization
Primary data and Secondary Data
Questions Frequency
Q1). Do you familiar to the concept of fast fashion in context of retail
fashion industry?
Frequency
a) Yes 5
b) No 2
c) MayBe 3
Q2). In your consideration, what is the impact of online selling practices Frequency

of Marks and Spencer?
a) Increase in overall customer base 3
b) Enhancement in revenue 4
c) Developing strong competitive reputation 2
d) All of the above 3
Q3.) As per you, does there is intense competition with retail fashion
industry?
Frequency
a) Yes 5
b) No 3
c) c) MayBe 4
Q1). Do you familiar to the concept of fast fashion in context of retail
fashion industry?
Frequency
a) Yes 5
b) No 2
c) MayBe 3

a) Yes b) No c) MayBe
0
1
2
3
4
5
6
Interpretation: It is analyzed that as per 5 respondents they are well-familiar to the concept of
fast fashion in context of fashion retail industry whereas 2 participants are not familiar to the
respective concept. There are other 3 individuals who have been shown neutral response
regarding the knowledge of fast-fashion.
Q2). In your consideration, what is the impact of online selling practices
of Marks and Spencer?
Frequency
a) Increase in overall customer base 3
b) Enhancement in revenue 4
c) Developing strong competitive reputation 2
d) All of the above 3

a) Increase in overall
customer base b) Enhancement in
revenue c) Developing strong
competitive reputation d) All of the above
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Interpretation: It is monitored that as per 3 individuals online selling practices of Marks &
Spencer is helpful in increasing overall customers base whereas 4 participants consider that
online selling practices is useful in terms of enhancing revenue. There are 2 respondents who
consider that online selling helps in developing strong competitive reputation of brand in market
place whereas 3 participants consider that online selling is helpful in generating all the above-
mentioned impacts profoundly.
Q3.) As per you, does there is intense competition with retail fashion
industry?
Frequency
a) Yes 5
b) No 3
c) c) MayBe 4

a) Yes b) No c) c) MayBe
0
1
2
3
4
5
6
Interpretation: Based on above-graph, it is analyzed that 5 respondents consider that there is
intense competition across retail fashion industry whereas 3 individuals consider that there is no
competition within retail fashion industry. Also, 4 participants have been shown neutral response
regarding level of competition in retail fashion industry.
SWOT Analysis
Strengths Weaknesses
 It is considered as one of the powerful
retail brand with superior level of brand
image within the industry.
 It has significance presence across the
world by having more than 1000 shops
across numerous countries worldwide.
 Being in retail industry, Marks &
Spencer has to face high competition
from other competitors brand present in
market place (Nucamendi-Guillén,
Moreno and Mendoza, 2018).
 As Marks & Spencer is a popular brand
hence they need to save their brand
from imitation by other rival brands.
Opportunities Threats
 Here, the respective brand has  Increasing level of competition across

opportunity of introducing new market
segment to earn substantial amount of
profit margin in an efficient manner
(Granata, Moretta Tartaglione and
Tsiakis, 2019).
 The brand has opportunity to expand
business by opening more new stores
across different countries that will lead
them towards higher profitability.
fashion industry is a great threat for the
respective company that will hamper
their future positioning as well.
 It is analyzed that uncertain events such
as COVID-19, Brexit and more are
creating significant threat for business
functions profoundly.
Porter’s Five Force model
Threat of new entrants: Marks and Spencer is a well-established player in fashion
industry since long. They have presence across more than 1000 locations at global level. Being a
multinational brand, they have established positive image in the mind of customers. In this
situation, it is quite complex for a new entity to enter in such market and compete with a well-
established firm. Therefore, threat of new entrants is high for the respective company that will
affect their future potential as well.
Threat of substitutes: The respective entity operates in clothing and food industry which
falls under basic necessities of human being. Hence, there is no substitute of such products
(Gupta and Gentry, 2018). In terms of competition within industry, there are ample of other
brand present within the industry that are likely to offer similar products at cheaper price which
makes threat of substitute high for the selected company.
Bargaining power of buyers: In retail industry, there is extensive competition due to
presence of numerous brands. Also, retail industry is highly competitive and its customers are
price-sensitive (Landia, 2017). Here, customers are likely to switch from one brand to the other
in search of better products at lower price. In addition to this, alternative are available in both
expensive and affordable rate which create high bargaining power of customers.

Bargaining power of suppliers: In case of Marks and Spencer, they have multiple
suppliers hence they are not likely to obey the rules and policies of vendors. In addition to this,
they can easily switch over other suppliers to get necessary raw material. The respective brand
has presence all across the world that makes it easy for buying necessary materials from global
suppliers. Therefore, bargaining power of suppliers is low in context of the existing brand.
Competitive rivalry: In retail industry, competition is really high due to presence of
numerous brands. There are numerous players who are likely to offer similar products to the
buyers. In addition to this, customers of the respective industry are price sensitive as well
(Morotti, Donatiello and Marfia, 2020). They can easily switch to get products on lower price.
Hence, competitive rivalry for respective company is high that will affect future growth as well.
Recommendations
 The selected company is required to implement sustainable practices in order to build
strong brand image in market. In current time, following sustainable practices is highly
imperative to maintain positive image of the entity to maintain significant competitive
position in market place. This will allow the respective company to attract more number
of customers that will lead the brand towards higher productivity and profitability.
 It is suggested that the respective entity needs to motivate its workforce to work with
their utmost potential. For this purpose, they can adopt suitable motivation strategies like
monetary and non-monetary. In terms of monetary aspects, they are required to offer
incentives, bonus and other such benefits to individuals. On other side, they are also
required to adopt necessary non-monetary aspects like acknowledgement, appreciation,
promotions to employees in order to develop their willingness to perform their duties
appropriately for success of entity.
 It is analyzed that Marks & Spencer is required to strengthen its online presence in order
to improve the brand image. In this regard, they are required to regulate their social
media and online presence constantly. Further, they need to maintain proper interaction
with existing & potential buyers using different social media platforms as it will help in
developing competitive edge in the fashion industry. Further, this will also prove useful
in terms of attaining higher amount of profit in an efficient manner.

 There is requirement to train and develop workforce so that they can fulfill their assigned
duties in the best possible manner. Here, training is useful in improving skills,
competencies, knowledge base of workers which further makes them enable to improve
their productivity. In case of Marks & Spencer, they are also suggested to provide
appropriate training to their employees in order to improve their overall capabilities to
perform their jobs effectively. This will lead ample of benefits for company along with
enhancing their existing revenue and profitability.
 It is suggested that the selected brand is required to maintain proper communication with
team members. In this regard, they are required to use different communication tools
such as emails, video conferencing, zoom meetings and more. Here, using such tools will
prove helpful in exchanging necessary information with team members so that prompt
and effective decisions can be taken for future betterment.
Conclusion
After going through with above-information, it can be summarized that Marks and Spencer is a
well-known British fashion retailer. In above-report, three major trends have been identified as
fast fashion, online selling, interaction retail experience and more. Furthermore, there is
discussion regarding two major models such as SWOT analysis and Porter’s Five Forces which
is useful to make detailed analysis of the company. Moreover, the entity is suggested to motivate,
train the workers along with maintaining necessary communication to get better outcomes in
future period of time.

References
Books and journals
Bulović, V. and Čović, Z., 2020, September. The impact of digital transformation on
sustainability in fashion retail. In 2020 IEEE 18th International Symposium on Intelligent
Systems and Informatics (SISY) (pp. 000149-000154). IEEE.
Fares, N., Lebbar, M. and Sbihi, N., 2018, April. Quick response in fast fashion retail: An
optimization supply chain responsiveness model. In 2018 4th International Conference
on Optimization and Applications (ICOA) (pp. 1-5). IEEE.
Fernie, J. and Grant, D.B., 2019. Fashion logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Granata, G., Moretta Tartaglione, A. and Tsiakis, T. eds., 2019. Predicting trends and building
strategies for consumer engagement in retail environments. IGI Global.
Gupta, S. and Gentry, J.W., 2018. Evaluating fast fashion: Examining its micro and the macro
perspective. In Eco-friendly and Fair (pp. 15-23). Routledge.
Kautish, P. and Sharma, R., 2018. Consumer values, fashion consciousness and behavioural
intentions in the online fashion retail sector. International Journal of Retail &
Distribution Management.
Landia, N., 2017, August. Building recommender systems for fashion: industry talk abstract.
In Proceedings of the eleventh ACM conference on recommender systems (pp. 343-343).
Morotti, E., Donatiello, L. and Marfia, G., 2020, March. Fostering fashion retail experiences
through virtual reality and voice assistants. In 2020 IEEE Conference on Virtual Reality
and 3D User Interfaces Abstracts and Workshops (VRW) (pp. 338-342). IEEE.
Nayak, R., Akbari, M. and Far, S.M., 2019. Recent sustainable trends in Vietnam's fashion
supply chain. Journal of Cleaner Production, 225, pp.291-303.
Nucamendi-Guillén, S., Moreno, M.A. and Mendoza, A., 2018. A methodology for increasing
revenue in fashion retail industry: A case study of a Mexican company. International
Journal of Retail & Distribution Management.
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