Impact of Market Entry Strategies on Emerging Markets: A Case Study of Marks and Spencers

This study analyzes the impact of market entry strategies on emerging markets, focusing on the case of Marks and Spencers. It examines the factors that can affect the company's success and the barriers to entry in these markets.

The impact market entry strategies on the emerging
markets: the case of Marks and Spencers

Table of Contents
1.1 INTRODUCTION.................................................................................................................3
1.2 BACKGROUND OF THE STUDY......................................................................................3
Literature Review.........................................................................................................................4
Methodology and Analysis..........................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

The impact market entry strategies on the emerging markets: the case of Marks and
Spencers
1.1 INTRODUCTION
The impact market entry strategies on the emerging market of Mark and Spencer wich
analyse the different factors that can ups and down the company. Mark and Spencer is the British
multinational retailer with headquarters in Westminster, London and it is specialized in selling
high quality cloths, home and food products. It was founded in 1884. It has currently 1064 stores
across the world and operates in over 40 countries and it has 700 plus stores in UK. The main
products and services of this company includes cloths, shoes, food and beverages, alcohol,
financial services, Energy services, home-ware, cosmetics and perfumes. The net profit of Marks
and Spencer is of about millions of dollars and that is why Marks and Spencer is the biggest
company in the world. The focus of Mark and Spencer is to give the high quality products and
services and this is the only reason this company has the large customers base. The functioning
environment of M&S is very strong and it incorporates with helping communities, proper waste
management, recycling of the waste to take out the best and also this company focuses on
Corporate Social Responsibilities which helps the company to be socially accountable. The
company needs some improvement in the competitive advantages and this demands the
improvement in the external factors like social campaign and the company should be upgraded
and active in economical, social and technological factors.
1.2 BACKGROUND OF THE STUDY
Mark and Spencer is the largest multinational retailer of the world and also it is the most
evolving organization in retail sector. In previous years during the expansion in other countries,
the company has been using the native rule but this approach was not successful and this was the
biggest challenge for the company, so the mission of M&S is to stay active and productive in the
competition (Rodriguez, 2019). Mark and Spencer uses various types of modes of entry in new
markets and company believes in opening their own stores for increasing their economy. Mark
and Spencer is now planning to make the Plan A which improves the existing marketing
strategies and this Plan will guide the company by following ways such as Inspiration, In touch,

Integrity and innovation and the organization is working hard to make this plan successful. The
aim of this is to examine and analyse the effective entry marketing strategies such as acquisition,
joint venture that can be adopted by Mark and Spencer to enter the selected markets. The
traditional and the old method of market research just focuses on the macroeconomic and the
other external factors such as political factors etc. but forget to follow the important factors such
as emerging market dynamics and the future growth planning and this is the only reason, the
company flops in their starting stages. The aim of this study is to analyse the impact of the
market entry strategies and also the different factors that can used to deeply study the impact of
the company entering into the market and the barriers that can affect the company productivity.
(Rashid, 2016). The need of this study is to analyse the positive aspects during entering the new
market and sometimes the company cannot understand the market trends and go out from the
competition and this is the only reason the companies do not get the proper growth and results in
the failure.
AIM
The aim of the study if to analyse the impact market entry strategies on the emerging markets in
the context of Marks and Spencers.
Objective of the Study
The main objective of this study includes;
 To analyse the different suitable factors of entry marketing strategies for Marks and
Spencer in emerging markets according to the institutional theory.
 To evaluate the market entry strategies on the sustainability and performance of this
organization.
 To examine the barriers of this company for entering into emerging market.
RESEARCH QUESTIONS
What is the effects of market entry strategies on emerging markets?
Rationale of the study
Every company faces some problems during expansion and also this is the biggest
challenge for the organization is to compete with the existing businesses and this requires a
better and effective strategy to compete with the other marketers. There are several methods
which helps the company to enter into new and emerging markets such as franchising the brand,
direct exporting, partnership, joint ventures, greenfield, licensing etc. and Marks and Spencer

also follows the same method to enter into new markets. The study helps the marketers and
managers in evaluating the new market and also the company makes the new strategies and plans
to achieve goals especially regarding development and style furthermore as alternative selling
ways like pricing policies. It'll additionally give an improved understanding and analyses of the
market surroundings and guide businesses going forward. This research analyses highlights and
analyse the appropriate market strategies and the different marketing barriers that hinders the
marketing performance of the company. There are several logical factors and reasons that can
prove the marks and Spencer is facing the problems i.e., the M&S is facing the problem of being
too bureaucratic and also some start-up companies are facing the problems during entering the
new market and this adversely affect the whole production of the company and this results in the
closing of the company. The reason behind conducting this study is to analyse the factors that
can impact the company in every aspect while entering the new market and the live example of
Marks and Spencer that are failed during entering the new market and also there are several
financial decline of Marks and Spencer in year 2000 and 2001. (Wilson, 2018).
Literature Review
Institutional theory and Market entry strategies
The literature review examines the different factors of entry marketing strategies and it
argues that the choice of appropriate market entry strategies makes the firm successful and
energetic and this also helps in giving the competitive advantage (Kolawole., 2018) Argued that
the organization management established the better marketing strategies and this gives the better
impact on the future outcomes and the results. The organizational environment includes both
formal and informal methods or forces in the form of rules and regulations which affect the
organizational and human behaviour. This recommends that the company uses the acquisition
and joint ventures and also this can be beneficial for the company to know the market and allow
Mark and Spencer to enhance the experience and gain, deal with the local marketers and also
penetrate the market which changes the practices, culture and failure of the company. (Khalid,
2016) states that the one decision can change the whole scenario and also helps the company to
enter the new market especially in the emerging market where the existing companies are
regularly increasing and this is the biggest challenge for Mark and Spencer. (Popoola, 2015
argues that the foreign marketers expand their business in the emerging market but faces many
challenges such as government failures and this is because of regularly changing the political

parties and this affect the export policies, poor economic conditions. In case of developed and
professional markets the cost factor does not matter and also the Foreign marketing strategies has
high management complexity and a higher exposure to political and economic risk as a result of
institutional weakness. (Vincent., 2015) states that control of production and protection of the
resources gives the tremendous growth to the organization and these are very critical for the
retail companies i.e., Marks and Spencer.
Market entry Strategies
Organization uses the various types of marketing strategies to enter this competitive market and
in today's time, the most competitive and emerging markets are China, India, Brazil, Mexico and
South Africa. Marks and Spencer uses the following marketing factors such as acquisition, joint
ventures, entry strategies and the network relationship. Companies who follow the acquisition
model are always sensitive and also it can impact on the financial markets. The predefined
strategies of the Marks and Spencer are always facilitates the financial market this helps in
showing the transparency. Acquisition is beneficial for the market where the legal laws and
intellectual property rights do not interfere the market deeply (Bierman., 2018). The biggest
disadvantages of the acquisition is that it is less connected with the outside companies and also
do not have the local partners. There are several countries like India, Russia, the corruption and
terrorism are the problems which affect the market and also the foreign existence and also the
regularly changing of the political parties affect the companies and their different rules and
regulations affect the company productivity and the stops the success rate of an organization.
The countries like Bangladesh, Pakistan are suffering from the serious terrorism attacks and this
is the major factor which stops the companies to start the company in the new market and the
existing companies gives the major competition to the new companies. So, these are some factors
which should be analysed before making the marketing strategies for the new markets (Burt, Coe
and Davies., 2019).
The another factor i.e., joint venture reduces the market risk which is associated with the new
markets and also helps the companies in making the new marketing strategies and also gives the
ideology to gain the local competitive market because the customers are the only factor which is
responsible for the making the market up and down and the regularly changing demand of the
consumers is the challenge for the businesses and the most important challenge for the
companies is to complete the needs of the consumers and here the joint venture works as an

important tool. The other local retailing firms is appropriate for Mark and Spencer to enter the
new market and also helps in making the close connection with the marketers and the
stakeholders of the emerging market because the existing companies already knows the current
market trend. (Toms and Zhang., 2016) reveals that the countries like US, China, India, Russia
and UK are the most developed and the evolved market in today's time and the companies like to
star their firms in these markets and also these countries improves the capabilities and
performance of the companies.
The Greenfield acquisition is the another method which helps the company in entering the new
and emerging market. Greenfield acquisitions makes the better marketing presence and also it
helps the organization to know about the local market so that companies gives the significant
contribution in making the existence of the company stronger and also the company can put their
steps in new markets. Some international retail companies are always faced some challenges
while entering ion the new market and the biggest danger of Greenfield acquisition is the
collapse of the business and this creates the bad impression of the organization and also makes
the company culturally unfit.
Barriers to enter the Emerging market
The Literature review shows the barriers that can be come in between the success and also this
makes the barriers to enter the new market. Most of the barriers which includes changing
government policies and the political parties which create the barriers to enter the new market.
Another barriers of in the expansion is the social, economical and the cultural barriers which
creates the huge difference and also the developing markets creates the language difference. The
developed markets like India, South Africa are having their own languages and also this can
create the barriers in the expansion of the company and this is the biggest barriers because the
customer services will also in their languages and this affect the company productivity and
customers will not use their services and in some countries like Saudi Arabia uses their own
language on their websites also so that the users are not able to understand their language and
this creates the communication gap in between company and customers. The cultural barrier is
the another factor which can derail the success and also affect the professional environment of an
organization and creates the biggest obstacle for the small and medium companies to enter the
emerging market (Damgaard and Spencer., 2016).

Methodology and Analysis
Research methodology is the complete road-map of planning the strategies for the
organization. It also helps the company to analyse the strengths and weakness of the business
that can affect the company growth and success. The research of any organization requires the
numerical as well as the other theoretical data that helps in identifying the company current
process and the retail companies uses the different marketing strategies to grow in the
competitive markets and also the study of several companies (Nusrat., 2016) states the different
types of methodology of the company and identifies the organization form the ground level.
 Data collection
Data collection is the method collects the useful and numeric data of the company which
is related to the economic and financial growth of the company. There are so many questions
asked from the high personalities of the company like mangers and the CEO of different
companies and firms to know the current structure of the companies and this analyses that the
company is having the great growth rate and also the different marketing segment of the
company like cloths, and the other products are getting the better response in the existing and in
the other competitive markets. This tool helps the company barriers of this company for entering
into emerging market in providing the transparency and this detects the different problems and
weakness of the company.
 Sample frame and Sampling techniques
The sample frame includes the analysis of the employees and their contribution and the
views about the company about the culture and the work environment and the strategies used by
the company to bring the success sin the company. The study analyses the relevant knowledge of
not only of the companies also of the employees. Since the entry market strategies and the
decision-making process, the middle and the top order employees are involved in the analysis of
the data (Engelke., 2017).
 Data analysis and presentation of data
After the whole collection of the data, the complete data is deeply analysed and also the
feedbacks and questionnaires are also analysed which comprises the different aspects and the
themes of the study and this also helps in detecting the major areas that are in a slow growth.
 Research Design

The research design of the company shows the blue print and the different types of
research design such as exploratory, descriptive and causal research designs. The research design
explains the mandatory CSR for the private sector companies. The different analysis of the
company are as follows - It analyses the objective management and the statistical, mathematical
and the numerical analysis of the data by doing the surveys or by the polling, questionnaires by
using the computational techniques. On the basis of collected data the research data identifies the
management, staff culture, working strategies of the company and also the system culture of the
company. The qualitative research focuses on the obtained data by using open-ended collection
of the data and also by interviewing the employees of the company randomly and by visiting the
nearby stores and the shopping malls to collect the feedback of customers to know the brand
value of the company among people and also it helps in analysing the ups and downs of the
company (Trewin, Vanzetti and Thang., 2016).
 Research Philosophy
The research philosophy is the subjective analysis of the company so the descriptive and
the interpretative approach analyse the people view and the beliefs towards the working
environment of the company and this strategy helps in identifying the research which can be
individual or it can be based on the hypothesis of the research that developed and form the
analysis, explanation and understanding of the qualitative data from the research.
Analysis
The analysis of the complete collected data of Marks and Spencer about the impact of the
different marketing strategies and the strategies on the sustainability and performance of this
organization and the barriers of this company for entering into emerging market. The first
objective of Marks and Spencer focuses on the expansion of the company in the competitive and
emerging market and in M&S, this is the biggest opportunity of this company and this
organization is regularly evolving in the new market and it is very important for making the
proper marketing strategies and also the strong decision-making. There are several countries like
India, Russia, China, South Africa are the most evolved and the competitive market where all the
companies especially the retail companies expand their businesses in these countries and also the
factors like acquisition, joint ventures are the factors which helps the company in analysing their
string and weak points. UK is the developing country in terms of retail marketing and the
traditional marketing is the biggest disadvantage of this country in which the new companies

cannot grow according to the market requirement and this is the only reason the companies starts
expanding their business because UK follows the traditional marketing strategies and this is not
helpful for the company's growth (Meyer and Peng., 2016). All these methodologies are used to
analyse the impact of company and also the barriers that can come in between the success of the
company. Like Research design and the Research philosophies are used. it is important to
determine the exact philosophy that will be used in the research. There are two main types of
research philosophies that are analytical and descriptive where the investigator is able to
critically evaluate the variables and influence them to determine his research. The analysis of the
company bny using different methodology such as the The Green acquisition is the methodology
that is used by Marks and Spencer that helps the company in expanding in the new and emerging
market and also there are several benefits of Greenfield acquisition if the tax breaks, financial
incentives, compete with the local marketers that are already exists in the market and gives the
power of controlling the venture capital. But on the other hand, there are some disadvantages of
the Greenfield acquisition is the greater capital requirements, complex plans and strategies and
the long term commitments and the long term commitments are the biggest risk of the Marks and
Spencer because of the political instability and the changing government policies gives the direct
demotion to the Marks and Spencer and the countries like India, Pakistan, Saudi Arabia are the
hub of corruption and terrorism which can downsize the company because these reasons are the
barriers for the growth and the development of the company and also the corrupted and terrorist
areas is having the one opposition factors which can decrease the productivity and unbalanced
the company which can put the question mark in the sustainability of the company. There are
some negative aspects of the company is that it completely depends on the local marketers and
the other companies which can only help this organization in knowing the market but this can be
the dangerous situation Mark and Spencer. The biggest weakness of Marks and Spencer are
analysed by research analyses and the data collected after the complete interaction with the
senior employees like mangers and the financial management so the result was found that the
company expansion in the other countries like Asia and Europe are the failure or the M&S and
also fails in getting the customers attention and the customers are not going towards the new
market because of the price distribution and the customers finds the alternative of the product
and this is the biggest challenge for the organization and the poor feedback from the consumers
was not up to the mark. The company should surround the business with the reliable parters that

can be helpful in achieving the customers attention and this will increase the capital and
economy of the company and also increase its return and this is the main missions of Marks and
Spencer (Meyer and Peng., 2016).
CONCLUSION
The whole file conclude the impact of market entry strategies on the emerging market
related to Marks and Spencer. This also concludes the different suitable factors which are helpful
in analysing the strengths and weakness of the company that are acquisition, joint venture and
the Greenfield acquisition while entering in new market and it also concludes the barriers that
can come in between the expansion of the company and also the Literature Review of the whole
company and the different research methodology of Marks and Spencer that can be research
design, philosophies and the data analysis of the company related to finance and other factors.

REFERENCES
Books and journals
Rodriguez, O., 2019. Artificial Intelligence in the Business of Tourism: A Market Strategy in the
UK Travel Distribution(Doctoral dissertation, University of East London).
Rashid, M.D., 2016. Perception of Employee’s about the Human Resource Management
Practices (Talent Management) in Marks and Spencer in Waterloo, London (Doctoral
dissertation, University of East London).
Wilson, S., 2018. What attributes from Food Aesthetics, Service Quality Cues or the Roles,
Consumption Rituals or The Norms and Boundaries of the Service Provider contributes to
customer Service Experience in a Fine Dining restaurant context? (Doctoral dissertation,
University of East London).
Kolawole, B., 2018. The “Inside” and “Outside” Perspectives of Corporate Rebranding: A case
study of Greggs Plc (Doctoral dissertation, University of East London).
Khalid, M., 2016. How cultural brands from evolving markets distinguish its brand image in
international market from customers’ perspective?–A case study on Pakistani clothing Brand
‘Khaadi’launched in London (Doctoral dissertation, University of East London).
Popoola, A., 2015. A Critical Analysis of the Recruitment and Selection Process in the Nigerian
Public Sector: A Case Study of the National Space and Research Development Agency(Doctoral
dissertation, University of East London).
Vincent, C., 2015. The Impact of Macroeconomic variables on economic growth: A Panel Data
Analysis of selected Developing Sub-Saharan African countries (Doctoral dissertation,
University of East London).
Bierman, A.N., 2018. Examining United States Professional Women’s Volleyball Entities Use of
Twitter for Social Media Marketing and Brand Development (Doctoral dissertation, University
of East London).
Burt, S., Coe, N.M. and Davies, K., 2019. A tactical retreat? Conceptualising the dynamics of
European grocery retail divestment from East Asia. International Business Review,28(1), pp.177-
189.
Toms, S. and Zhang, Q., 2016. Marks & Spencer and the decline of the British textile industry,
1950–2000. Business history review, 90(1), pp.3-30.

Damgaard, T. and Spencer, R., 2016. Coordinating supply chains... interfacing production
networks... or creating markets? The case of global integrators and sourcing in China.
Nusrat, S., 2016. Do screened indexes and their portfolios experience a performance penalty due
to the application of screening criteria? Empirical evidence from a study of the performances of
four FTSE indexes (Doctoral dissertation, University of East London).
Engelke, F., 2017. How does Snapchat as a social media marketing platform influence consumer
behaviour? (Doctoral dissertation, University of East London).
Trewin, R., Vanzetti, D. and Thang, T.C., 2016. Safe Food Trade, and the Roles of Governments
and Markets: The Case of Vietnam Pork Trade. In CRUCIAL AGRICULTURAL POLICY:
Analysis of Key Threats to Food Security (pp. 171-204).
Meyer, K.E. and Peng, M.W., 2016. Theoretical foundations of emerging economy business
research. Journal of International Business Studies, 47(1), pp.3-22.