Analysis of Industry Environment and Success Factors of M&Co.

Running head:
Topic:
Name of the Student:
Name of the University:
Author note:
Executive Summary
This report presents and analysis of the industry environment and success factors of a Scottish
fashion retailer M&Co. that has been operating for more than 50 years in the Scotland, UK and
in the Middle East. As the growth of online fashion retail is negatively affecting the sales and
revenues of the physical stores, the companies must create new and innovative strategies by

1Appendix 3
utilizing its resources and capabilities to retain their market share. In this context, this report also
appraises the strategy of M&Co. through business model canvas, VRIN framework and Porter’s
value chain analysis to evaluate its competitiveness in the market.

2Appendix 3
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Analysis of the industry environment and survival / success factors........................................3
2.1 Industry environment analysis...............................................................................................3
2.1.1 PEST analysis.................................................................................................................3
2.1.2 Porter’s five forces analysis............................................................................................4
2.2 Analysis of the success factors for M&Co............................................................................6
3.0 Appraisal of the strategies of M&Co.........................................................................................6
3.1 Resources:..............................................................................................................................6
3.2 Capabilities:...........................................................................................................................7
3.3 Business model canvas..........................................................................................................8
3.4 VRIN Framework..................................................................................................................9
3.5 Porter’s value chain analysis...............................................................................................10
4.0 Conclusion...............................................................................................................................12
References......................................................................................................................................13
Appendix 1.....................................................................................................................................15
Appendix 2.....................................................................................................................................15
Appendix 3.....................................................................................................................................16
Appendix 4.....................................................................................................................................17

3Appendix 3
1.0 Introduction
This report explores and analyzes the market position and competiveness of M&Co. in
the retail fashion industry through its environment analysis and the success factors in the times
when there is a rapid growth of online fashion retailers. M&Co. is a Scottish chain retail fashion
store that sells clothing of various ranges for men, women and children and also small homeware
products. The business was set up as a family based business 50 years ago and it still works in
the same principle. The company has more than 300 stores across Scotland and London and an
employee base of 3900 (Mandco.com 2019). It also has a website with online purchase facilities.
The environment and success factors analyses will be done through PEST and Porter’s five
forces analysis. This report will also appraise the strategy of the organization undertaken to
expand its growth in a highly competitive market by applying the business canvas model, VRIN
framework and Porter’s value chain analysis and will present a relevant conclusion.
2.0 Analysis of the industry environment and survival / success factors
2.1 Industry environment analysis
2.1.1 PEST analysis
PEST analysis stands for political, economic, social and technological factors that make
external environment for an industry. This framework is used to analyze the external influential
forces that affect the business of the fashion retail in Scotland and the UK.
Political  After the Brexit referendum, there has been uncertainties and upheaval
in the political scenario of Scotland and the UK (Dhingra et al. 2016)
 Government provides supportive incentives to the businesses to grow
Economic  Fall in pound after the Brexit referendum has affected the international
businesses for fashion retail industry (Kierzenkowski et al. 2016)
 Profit margins for fashion firms has declined substantially after Brexit
referendum (Busch and Matthes 2016)
Social  The rate of increase in population is quite high.
 There is high demand for plus size as well as petite size clothes (Chan,