Value Chain Analysis of Marks and Spencer

Report about Marks
and Spencer

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction about the company .................................................................................................1
Back ground information............................................................................................................1
Products and services of Mark and Spencer- .............................................................................1
Analysis of Competitive environment of Marks and Spencer using Porter’s 5 Force with
justifications................................................................................................................................2
Discuss Value Chain analysis of Marks and Spencer................................................................4
Discuss two support activities in Porter's value chain of Marks and Spencer:...........................6
Identify key value adding activities with justification of Marks and Spencer............................7
Summarise and reflect on how the business could deploy information technology (IT) and use
innovative ideas to improve its business processes and to enhance its competitive positioning 7
REFERENCES................................................................................................................................9

INTRODUCTION
Introduction about the company
Marks and Spencer Group plc commonly known as M&S. It is a most renowned brand
among British retail sector, which majorly deals in quality clothes, premium edible products and
luxurious home décor articles (Baxter, 2019). It is a UK based multinational corporation and its
headquarters are situated in Westminster, London. It has a high rising position in the London
stock exchange list. As a constant component in the Financial Times Stock Exchange 250 Index
since 2019. The company has been ranked as top 7th super brand by Centre for Brand Analysis in
the year 2018. It is among giant global retailer brands with a counting of more than 959 stores
all over the world.
Back ground information
Marks and Spencer was established as a partnership firm by Michael Marks and Thomas
Spencer in the year 1884. It grew up from a small shop to a public company by the year 1926.
Marks and Spencer opened their first food product outlet in 1931(Carvalho, 2019). Company
started the research and planning regarding the production of garment and apparel products
during the interwar period and established its very first textile unit in 1985. as in respect of the
current scenario marks and Spencer trades in more than 30 nations. The growth of brand on a
worldwide level is appreciable as it majorly focused on the core competencies of market. They
always tries to perform every operation in the most innovative way possible. Significant brand
values of Marks and Spencer are its promises for high quality services and trust for providing the
premium products. Marks and Spencer sources raw material only from their verified farmers and
stockist. Business also involve a great role in establishing international connections as it
contributes in their economy as well (Chalaby, 2019). By doing overseas sourcing of production
materials from various other countries as Malaysia, India, Hong Kong, Bangladesh, Turkey,
Thailand, China, Italy, Sri Lanka and Indonesia. Thus such verifications increase the authenticity
of the production process and enhances the quality of it.
Products and services of Mark and Spencer-
They offers a wide range of products and services in its three respective sectors as they
consists of home products, food and beverage items and the foremost part is it clothing sector .
There are numbers of quality products in this segment some of them are women’s clothing,
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denims for each and every age and gender group. men’s clothings from inner wear to formal
suits, school articles comprising of all the major products as bags, containers, classic and sporty
footwear, kids wear; shoes for occasions, accessories for men and women, wallets, jewellery,
watches, hosiery, gem art effects, socks, and cosmetics, beauty products, for bathing, body, hair
care, make up, fragrant soaps, perfumes and deodorants, nail care, and skincare products, extras
includes men’s and kids’ toiletries, travelling gears, relent accessories, and occasional gifts. The
company commits to provide the genuine product on time with full value of money. From past
few years the business faced a bit of difficulties in the market in terms of the increased
competition. As the vast segment of customer shifted towards the electronic shopping platforms.
Where other business entities offers the similar good under same quality and decreased price.
Such replicas of the original product influences the price oriented customers.
Analysis of Competitive environment of Marks and Spencer using Porter’s 5 Force with
justifications
There is a high competition for Marks and Spencer in the market place as there are
numerous other retail businesses which affect the working cycle of company. Porter's Five
Forces is a strategic business model which helps in finding and analysing the competition
surroundings around the organisation (Chlopecký, 2019). Analysing the Porter's five strategies
for Marks and Spencer will help in understanding the pros and cons of brand in market. Such
information plays an important role in the corporate planning for upcoming operations and
management of business. A long term profitability can be achieved by taking corrective
measures after application of these five forces.
Threat of new entrants:
Magnitude of new entrant in the market is quite low. The main reason behind this is that
it take s a huge capital investment for the establishment of the new retail company. It is a risky
task to introduce something new or experimenting irrespectively of market culture. As a new
company has to provide something very different product and service to consumers as it is
necessary to differentiate the product for the effective build up of brand.
All major retailers have strong established brand names and so enjoy customer loyalty, which
becomes increasingly important in homogeneous markets. In a case of a foreign entrant in the
local market the consumer taste and preference would be unidentified by the company. Higher
cost will be incurred to perform the research and development for the company in different
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