Strategic Management: Analysis of Marks and Spencer's Entry into China Market

Running head: STRATEGIC MANAGEMENT
Strategic Management
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2STRATEGIC MANAGEMENT
Table of Contents
External Environmental analysis.....................................................................................................3
Porter five forces analysis................................................................................................................4
Internal environmental analysis.......................................................................................................4
Value chain analysis of M&S to understand the organizational capabilities..................................4
Core competencies...........................................................................................................................7
References........................................................................................................................................8

3STRATEGIC MANAGEMENT
External Environmental analysis
Marks and Spencer is a popular global fashion and food retailer. This company has been
operating for 20 years in the global market. In order to enhance their business in the international
market, they have faced many challenges. Therefore, this company has adapted new challenges
while entering in China market (Marksandspencer.com 2018).
From the PEST analysis of China, it has been found that the government has given focus
on developing e-commerce. On the other hand, high inflation rate in China creates challenges for
M&S to grow their business in this country. Therefore, changing behavior of the customers is
another big challenge for this organization to meet the needs of the current market. However,
M&S has adapted the changing technology in China, which is a great challenge for this
organization while taking entry in this market (Ahmed 2016).
Strength
High brand recognition
A wide variety of the products
Trends
China market focuses on the innovation and the
consumer demand is changing. This market
trend is quite challenging for M&S to take
entry in this market.
Opportunities
In China market, the scope of foreign direct
investment is good as the government gives
scope to the foreign investors. This brings an
opportunity for M&S.
Threat
Economic recession in the year 2008 affected
the China market badly. The profitability
became lower and the FDI is also affected. This
is a big threat for M&S to enter in China