Compare and Contrast Theory and Practices of Competitive Model for Identifying Competitive Advantage and Failure

Strategic management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Compare and contrast theory and practices of competitive model for identifying competitive
advantage and failure...................................................................................................................3
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is the ongoing process of planning, monitoring, analysing and
assessment of the important which organization has needed to meet goals and objectives of
company in effective manner. Changes in business environment will require organization to
constantly assess strategies for success of company. The present report is based on Marks and
Spencer which is British multinational retailer. The company is specialized into various products
and services like clothing, home product and food products. An objective of company strives to
achieve and one is survival as well as development in long run within the industry. In the
organizational setting, a strategy entails long term plan of organization firm to ensure about their
competitive advantage. In that company requires to analysis competitive advantage for
improving and maintaining its market share. For that report will compare and contrast different
theories and practices of competitive advantage in effective manner.
MAIN BODY
Compare and contrast theory and practices of competitive model for identifying competitive
advantage and failure.
For the success of company, it is very important and effective to analysis competitive
advantage. This help to make effective and valuable strategies for company in order to get
effective and higher success at competitive era. For that selected company is Marks and Spencer.
Background of Marks and Spencer:
Marks and Spencer is British multinational retailer with specialise into selling clothing,
home product and food products. The company is listed into London stock exchange. The
company has 80000 numbers of employees with 1463 numbers of locations. Company has
various brand per una, autograph, limited, etc. company is first British retailer to make a pre tax
profit over the billion. The company sets vision, mission and objectives which are help to get
effective success at market place in effective and respective manner. A mission statement is
reflect the organization business is and purpose (Marks and Spencer mission, vision and values,
2019). Company have mission to make inspirational quality of accessible to others. On the other
side, vision statement of company is help to working in goal congruence. It comes from within as
well as outside and it is accomplished by the future decision making strategy. This create a
successful platform with same purpose behaviour guideline inspire emotions reflects values
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Marks and Spencer vision is to be the standard against which others are measured performance
through benchmarking. There are various values which are used by companies for attracting
more customers such as quality, services, innovation and trust. Those are help to create positive
success at market place in respective and in effective manner.
Porter five force analysis:
Porter five forces model is widely used by organization for analysis their business and its
environment. With the help of this, businesses are able to analysis their actual sales at market
place in effective manner. This refers with the overall attraction of the retails markets. This
model is help to compare the general environment of company and have ability to earn money
and profit from the market activities. The profit of company is analysis as well as determines the
market value of company in effective manner. This is model is includes various factors and
concept such as bargaining power of customers and suppliers, threat from substitute and new
entrants as well as competitive rivalry (Ansoff and et.al., 2018). This serves to make sure that
business maintain strength and improve weaknesses in order to avoid mistakes. Therefore, it can
be said which the five force model is providing a framework to the organization for analysing
profitability within industry. The presences of different competitive force affected to the
company performance. Porter five force analyses for Marks and Spencer are as follows:
Threat of new entrants:
This forces which is determine easy it is to enter a particular industry. Industry is
profitable and there are few barriers are entered into workplace very soon. Analysis of this factor
is very important for company to analysis the actual threat for Marks and Spencer. This create a
higher barriers to enter deter new entrants. Company have high threat from new entrants like
when amount of capital is low, existing companies do little to retailers, higher customer
switching cost, no government regulations, existing firm do not passes patent. The threat of new
entrants is low because it takes enormous capital investment to set the successful chain of stores.
The market is mature and an entrant has needed to offer new product and services, which is
rather difficult to do in food and apparel retailing (Porter five force analyses of marks and
Spencer, 2017).
This is very weak force for Marks and Spencer because company have effective capital
investment. As per that, this is very weak force for company because new entrants are also
required higher and strong capital investment for managing business in successive manner. this
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