Analyzing Competitive Advantage: Marks & Spencer and Zappos.com Report

This report provides an in-depth analysis of the competitive advantages of Marks & Spencer and Zappos.com. It explores how these companies achieve sustainable competitive advantage through various strategies, including customer support, profit maximization, and product differentiation. The report references key academic sources like Barney (2012) and Porter (2011) to support its findings. It examines factors such as brand image, barriers to entry, product uniqueness, and technological advancements, highlighting how these elements contribute to a company's market position. The report also discusses the importance of employee training, innovation, and effective management in maintaining a competitive edge. Furthermore, the report considers the challenges faced by companies, such as financial market collapses and economic downturns, and how these can impact their competitive strategies. The conclusion summarizes the key findings and reiterates the importance of sustainable competitive advantage for long-term success.

Resource Based View
literature

Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Sustainable competitive advantage has been considered as assets, abilities and attributes of
company. It is dependent on maintaining higher profit margin which is more than the other
companies. It can represent that higher performance and better position in international market.
The present report is based on Marks and spencer which attain competitive advantage and attract
large number of customers as well. In this report, different authors present their views on current
topic. It is the largest supermarket of UK which offer various types of goods and services in
market. In this case study of Zappos.com has been discussed which is world’s largest online
retainer of shoes. It was profitable and had an outstanding reputation for the purpose provide
customers service. It was introduced in year 2008 and it having gross sales of 1 billion dollars.
TASK
According to the words of Barney, (2012), it has been depicted that sustainable competitive
advantage is the helpful tool for the continuous growth of the company. Members of firm are
responsible to use their collective efforts in order to attain their target and maintain performance
in international market. The main components of competitive advantage are customers support
and profit making. Through which firms are able to provide goods and services in across the
national boundaries. They are bound to develop strategies which are framed by them. Members
have to frame various plans and strategies which are beneficial for the development of company.
Barney, (2012) says that Marks and spencer is the largest supermarket of United Kingdom which
provide varieties of goods and services to people in order to attract them and keep them for long
time. Employees having knowledge as well as abilities to attain competitive advantage. They
have to work in a team and try to enhance their skills. Innovation and creation is the helpful tool
for firms. Human resource department is responsible to recruit best person for the company who
having skills, knowledge and experience according to the requirement of firm.
As per the present case study which is based on Zappos.com. It was biggest online store
which offer shores for each group of people such as children, youngsters for men and women
and so on. However, the collapse based on financial market, and prospect of a prolonged
recession created new challenges.
On the basis of views of Chang, (2011), it is affirmed that Marks and spencer is the
multinational company which is responsible to provide safe and secure working environment to
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their employees. Entities which enjoy a culture of aggressive change, better teamwork as well as
innovative spirit which are able to maintain or build upon competitive advantages. Porter,
(2011), says that every department having its own process and system which may directly or
indirectly impact other departments. Cited firm is able to attract large number of customers and
responsible to comply with rules or regulation which are imposed on them. There are several
policies imposed on companies in order to maintain entire performance.
As per the words of Reuter,and et. al., (2010), it is concluded that Competitive advantage
can be earning with the help of conducting training session for employees. Leaders and managers
of Marks and spencer are responsible to conduct training session for their workers for the
purpose of enhance their skill, knowledge and experience. Advance technology play effective
role in continuous growth and development of entity. Latest technology has been used to
promote their products and services in international market. Also it is needs to be opted in
production department. Through which company can produce and distribute better quality of
products and attract people as well. Expectation of buyers can be achieved with the help of this
process.
In the words of Kumar and et. al., (2011), it is stated that capital investments are able to
represent sustainable competitive. Retailer sector firms such as Zappos.com are engaged in the
process of production and distribution. Sustainable business change is not seeming predictable.
Legal authorities of UK framed various rules, regulation and policies which are imposed on
companies. So that, members of firm have to follow rules and perform function accordingly.
McWilliams and Siegel, (2011), stated that Governments as well as markets have begun a
complex process of aligning sustainability goals with economic objectives. Employees can
perform through framing of effective plans and strategies. It is the forecasting process which is
helpful for the growth and development of company. Also try to implement them in effective
manner. Product differentiation is able to maintain competitive advantage which is helpful for
the growth of company.
Advantages of sustainable competition-
Low cost- It will help in achieving Economies of scale and efficient operations which
facilitates a company in competition. It will be significant in creating barrier to entry of new
firms. It will help M&S in building brand loyalty and goodwill of overall concern. Porter,
(2011), has been defined that Marks and spencer provide products and services in international
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market at reasonable price which is easily affordable for customers. Due to this reason large
number of buyers are attracted towards company.
Makes brand more powerful- Sustainable competition also builds brand image which
helps the entity to achieve great corporate reputation and become market leader. Strong brand
image helps in sustainable competition and building goodwill of overall concern. West, Ford and
Ibrahim, (2015), stated that Marks and spencer responsible to promote their services in across the
national border. This is effective technique to enhance their brand image. With the brand
customers can easily identify goods and services of particular company. Furthermore, it can
reduce confusion from the mind of people.
Barriers to entry- It also helps in restricting new entries to enter the marketplace. It
creates monopolies for existing competitors. Heavy investment costs and strict government rules
rises difficulties for new entrants. As per the views of McGrath, (2013), it is stated that there are
large number challenges face by company which is able to reduce their work and performance as
well. Various of barriers can reduce work quality of products. Through which cited firm is not
able to enter in new market. Members of production department responsible focus on reduce
cost. Therefore, cost reduction is the best way to enhance profit margin of company and attract
people.
Product Differentiation- Product uniqueness plays a vital role in building consumer
loyalty and trust towards the brand. Reeves and Deimler, (2011), says that Quality, size of
models, reliability, extra customer services are the components that makes a product different
from others. There are large number of competitors of marks and spencer present in the market
such as Primark, Tesco and much more. So that, these companies are also produce and distribute
same products in order to earn profit. There is various option are available for customers. Cited
firm is responsible to profit product according to their expectation and demand.
Improved Product Line- It plays major role in competition so improvement in the
product line will put a positive impact on the mind-set of people and customer traffic will
increase. Members have to use their collective efforts in order to attain their target and maintain
performance in effective manner. They have to make significant changes according to the
Outstanding Management– It will facilitate in improving management process. Leaders
motivates their employees to work much better to face challenge and be ready for uncertain
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circumstances. It automatically makes management activities outstanding and results in more
productivity of workforce as well as the business concern.
Pricing Power- Company which is doing well in achieving competitive advantages gets
the power to control the marketplace and takes benefit of manipulating pricing system of entire
market. Hesterly and Barney, (2010), stated that Company which produce and distribute products
or services having power to set price on the basis of their cost and level of earning. They have to
set maximum price which means in case firm sell products lower than this then it is not fruitful
for firm. It should be set according to the expectation of people at reasonable price. At the end of
the year charted accountant of the marks and spencer is responsible to prepare financial accounts
and have to manage them properly. They need to prepare proper balance sheet and record each
and every transaction conducted by company.
Technological advancement- To survive in competition, upgrading the firm’s technology is
mandatory. This improves production process and quality of product. It also boosts up the entire
manufacturing activity and helps in dealing with competitors by standing out as a leader in
marketplace. Latest technology is play significant role in production and promotion of marks and
spencer in across the national boundaries. For the same purpose, members have to use their
collective efforts and try to meet objectives as well. It should also use in case of promotion.
Various types of strategies and plans needs to be frame in effective manner.
CONCLUSION
From the above report, it is stated that Sustainable competitive advantage is the helpful tool
for firm. Through which they can easily attain target and maintain performance as well.
Members of Zappos.com have to use their collective efforts in order to comply with rules,
regulation and policies which are imposed on them. As per the policies of law members are
bound to follow the same and try to perform their functions accordingly.
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REFERENCES
Books and Journals
Barney, J. B., 2012. Purchasing, supply chain management and sustained competitive advantage:
The relevance of resource‐based theory. Journal of supply chain management. 48(2).
pp.3-6.
Chang, C. H., 2011. The influence of corporate environmental ethics on competitive advantage:
Hesterly, W. and Barney, J., 2010. Strategic management and competitive advantage. Pearson,
ed., Pearson Prentice-Hall.
Kumar, V., and et. al., 2011. Is market orientation a source of sustainable competitive advantage
or simply the cost of competing?. Journal of marketing. 75(1). pp.16-30.
McGrath, R. G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
McWilliams, A. and Siegel, D. S., 2011. Creating and capturing value: Strategic corporate social
responsibility, resource-based theory, and sustainable competitive advantage. Journal of
Management. 37(5). pp.1480-1495.
Porter, M. E., 2011. Competitive advantage of nations: creating and sustaining superior
performance. Simon and Schuster.
Reeves, M. and Deimler, M., 2011. Adaptability: The new competitive advantage (pp. 135-41).
Harvard Business Review.
Reuter, C.,and et. al., 2010. Sustainable global supplier management: the role of dynamic
capabilities in achieving competitive advantage. Journal of Supply Chain
Management. 46(2). pp.45-63.
West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
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