M&S: Evaluating International Market Trends and Competitive Advantage

This report provides a comprehensive analysis of Marks & Spencer's (M&S) international market operations. It begins by evaluating current trends in the global clothing retail market, including population shifts, technological advancements, and increasing competition. The report then examines the market structure of the retail sector, focusing on geographical spread, customer segmentation (demographic and behavioral), and competitive positioning. Section 2 delves into M&S's background, product offerings, market focus, and current competitive advantages, including Porter's Five Forces analysis and strategic marketing challenges. Finally, the report offers recommendations for building a sustainable competitive advantage in the future, emphasizing competitive differentiation as a core strategy to navigate the complexities of the international marketplace and maintain social development while meeting business needs. The report aims to guide M&S in adapting to evolving market dynamics and securing long-term success.

Assessment 2
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Contents
INTRODUCTION...........................................................................................................................3
SECTION-1.....................................................................................................................................3
Evaluate the Trends in the international market in which M&S operates...................................3
The market structure of retailer sector, including geographical spread of item, customer
segmentation, competitive positioning........................................................................................4
SECTION-2.....................................................................................................................................5
SECTION-3.....................................................................................................................................5
Recommendations on how to build the sustainable competitive advantage in future.................5
Implementation of action that will build competitive advantage................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Global marketing is a marketing done on word wide scales reconciling commercial advantages
of the global operation different with respect to similarities and opportunities with meeting up of
the global objective in a trending manner. These strategies will be helping out in identification of
the new international opportunities by evaluating recent trends of international markets in
significant manner.
Marks and Spencer are the leading British retailer specializing in manufacturing fashionable
trending clothing styles. Being the dominant force, the firm is having more than 700 stores in the
home country UK and 1463 stores across the 57 countries. In this report, there will be discussion
on the recent trend of intentional clothing retail markets and firm global development. In
addition, the report will also have recommendations to build sustainable competitive advantages
along with-it implicative action.
SECTION-1
Evaluate the Trends in the international market in which M&S operates
As the economy grows slowly at marketplace, M&S may have to look at selling product as
well as service internationally. In order to remain maintain the profitable rate. It is important for
M&S to aware about the major international trends so that they can take benefit, advantage of
those might favor towards organization (Bolton and Shankar, 2018). Usually, international
markets are evolving rapidly and take advantage of changing the current environment to create
niche for M&S. There are considered the major trends in the international market where M&S
operates.
 Population and demographic shifts- The overall population of industries are aging
while many other developing nation still have a powerful population. In this way, it is
useful for M&S to target the youth people and provide the various benefits, advantage.
M&S business catering is well off pensioners that can gain more benefit from focus on
the international market for exploring the business (Brennan, Canning and McDowell,
2020). Generally, M&S is targeting the young families, children those who want to buy a
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stylish clothes. In this way, M&S can gain more advantage while increasing growth
within international marketplace.
 Advancement of technology/innovation- The pace of innovation is rapidly increasing in
the international marketplace. M&S can develop new product and service, improved their
version of traditional item so as they can maintain their position in the international
marketplace (Brennan, Canning and McDowell, 2020). it helps for enhancing the
business to achieve desirable goal and objective. M&S have no longer expect to be
automatically at forefront of technical development. The trends can be intensify as more
enterprises in developing nations. In order to acquire more expertise to innovate the best
quality of product and service.
 Increased business competition- As M&S enter into international markets, alternative
companies will increase the competition level because it is based on the developing
market. It often have a lower labor price/costs. Sometimes, it will be developed the
challenges for alternative enterprise is to keep ahead with faster through innovative,
automation services.
These are different trends in the international marketplace, M&S operates their business in global
market by consideration of different trends. At certain level, Key trends affecting the
development of M&S. therefore, organization can gain more understanding towards marketing
environment in which operating especially in target market. it involves cultural, political,
economic, legal, technology and environmental factors.
The market structure of retailer sector, including geographical spread of item, customer
segmentation, competitive positioning.
In M&S, It has been restructured its marketing team to help for increasing the sales and
production. It is always support for changing the perception of M&S within international market.
Sometimes, it can possible through market structure for enhancing the current business
performance as well as efficiency.
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The target marketing includes identification of most profitable segments. Therefore, M&S
may decide to focus on the one or more segments and develop product to satisfy the each
selected segment (Brennan, Canning and McDowell, 2020). M&S have been used the mass
marketing endeavours as increasingly targeting small segments and also customised with
different programs.
M&S can adopt Oligopoly market structure within international sector. This will help for
expanding the business across 30 nations around globe. In UK, M&S has more than 500 chain
aside from the fact, considered as largest clothing retailer in country.
Geographic spread of products: In M&S, Geographic segmentation is based on the
component that competently complement a marketing strategy. In this way, it is targeting the
specific innovative product and service on the basis of consumer reside. M&S can be divided the
products and service on the basis of regions, cities, nations and states (Verhoef and Bijmolt,
2019). Each and every individual have a different requirement so as understand the specific need
of audience. In order to fulfil their specific demand in proper manner.
Customer segmentation: The segmentation means that dividing the market on the basis of
customer demand, need or requirement. Basically, it is depending on the purchasing power and
buying behaviour of client. M&S will be segmenting the client on the basis of demographic,
behavioural segments. Mostly, it is targeting the young people, who will attract towards
innovative product and service. In additional, it will be targeting the business age group of 20-40
years old, including both male, female.
Competitive Positioning: The competitive Positioned of M&S as premium brand in global
marketplace. Potential consumers are willing to pay premium cost/price for M&S brand so that
organization have set up their high prices due to perception of premium brand among customer’s
mind.
SECTION-2
Background
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The international business has fully embraced on rationalism and repositioning prior to the
transformation’s programs and further progress. The major objective of M & M&S is to create
more levels of conceptualized local versions in the market where companies can attain
sustainable market share. The firm has to build the scalable business at international level by
continuing to localize the range to markets (Porter and Gilkey, 2020). M&S have positioned
itself as their premium brand in super markets as brand perception in the mind of customers
M&S is the leading British retailer bringing out quality, great value of food, clothing and
homeware to millions of customers around the world.
Products
The firm is a popular and top retail brand chain covering all the items of all age groups
that is men, women and kids. The firm has an offering of products which have inclusion of
clothing such as Blazers, Cardigans, Cashmere, Jeans, Linen, shirt, skirt and many more. In the
foot wear sections have inclusion of boots, sandals, loafers, pumps, heels etc. Bags and
accessories for women include handbags, beach bags, jewellery, sunglasses etc. In addition to
that the firm has home and furniture sections which have clear inclusion of other accessories
along with taking care of food and wine sections. The firm basically has the selling of in-house
brands as comparative to international brands in specific manner.
Market focus
The firms have segmentation of the international correspond to different people on the basis of
purchasing power or buying decisions in a perfect manner. In addition, the firm has respective
segmentation according to the demographic, geographic, psychographic and behavioural
segments. The firm is offering the customer with a selective range of high-quality products with
attractive design and merchandise being at the premium price customer.
In their year 2019, the firm has a sustainable increase of around 15% of local designed range of
clothing. The firm has grasped international markets by growing the Indian joint ventures with
around 80 stores (Joo, Eom and Shin, 2017). In addition, the firm has launched up their specific
level of websites and platform the business in the republic of Ireland. At the international cycle
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the firm has economic integrations in order to have proper facilitation of information,
technologies, good and service, capital and human resources. The firm has developed customer
service programmes in order to provide maxim satisfaction to customers along with establishing
the reasonable ratio between the premium quality and moderate proceed.
The firm have used mass marketing endeavours which are increasingly targeting the small or
niche segments along with providing the facilities of customized programmes.
Current competitive advantage
As per the focus of porter five force analysis, the firm is successful in building the sustainable
competitive advantage in the retail industry. The implicative porter five force analysis have
helped the company in formation of strategic positioning and explore profitable opportunities in
the whole retail sector.
• Threat of New Entrants
New entrants in retail are brought out by the new innovations putting pressure on M&S through
lower pricing strategy, reducing costs, and providing new value propositions to the customers.
So, the company should develop new products for new customers and provide a reason to
existing customers for buying M&S products.
• Bargaining Power of Suppliers
Suppliers are having dominant power which can reduce the margin of a company (Jin, Miao,
and Park, 2018). Suppliers have high negotiating power which lead to higher increase in the
prices which lower the overall profitability of the firm.
• Bargaining Power of Buyers
Buyer has high demand for the M&S products as best offerings of product are present at the
reasonable price. The firm has a smaller but powerful customer base. So there is higher
bargaining power of the customer and higher ability to seek their increasing discount and
offers.
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• Threat from Substitute Products
When the substitute product is successful completing the need, the profitability of the firm
suffers. So, the firm is currently facing the threat of being replaced. M&S is offering value
propositions that are uniquely different from the present offering of the industry.
• Rivalry among the existing players.
The industry has intensive competition which drives down the price and overall profitability of
the industry. Hence the firm doesn't toll on the overall long-term profitability of the organization.
The firm needs to focus on product differentiation so that action of the competitors has less
effects and customers are able to seek unique products. As the industry is growing, the firm
needs to focus on the new customer along with existing one. There is a need to build greater
updatability in supply demand situations in terms of prevention of overproduction.
Strategic marketing challenges
Being the British retailer, the firm has to develop their strong future strategies to become more
environment friendly and customer focused (Śmigielska and Oczkowska, 2017). The firm has a
determination of aim in keeping in mind the major issues such a reduction in waste, the climate
change, reserving the natural materials, fair trade practices along with building their healthier
nation. M&S have a lot of competitors which are more customer focussed keeping in mind and
analysing existing business conditions.
The firm has proper brand management which is helpful in providing the clear guidance how to
use the Marks & Spencer brand to ensure maximum impact. Marks & Spencer also work closely
with the franchise partner to help them gain maximum value from one of the world’s greatest
brands. The human and resource development of company’s tends to provide proper guidance
and focus on direction and manage the business in an effective manner. So, the firm have
determination in operational effectiveness which can used to have suitable competitive
advantage
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SECTION-3
Recommendations on how to build the sustainable competitive advantage in future
M&S retailer is considered as its own specific competitive structures, which can be
analyses from competition level of international marketplace. M&S have faced the tough
competition when they enter into international market (Verhoef and Bijmolt, 2019). Afterwards,
organization have been successfully used various competitive strategies to improve of build the
sustainable competitive advantage. It is also supporting in future to maintain social development
and measure suitable business needs.
It has been recommendation to adopt the competitive differentiation as basic strategy to
build the sustainable competitive advantage in future. This type of strategy will help for M&S
business in context of production and sales (Hardaker, 2018). Thus, it makes their product and
service become unique. The potential consumers are willing to pay high price/cost. M&S can
differentiate their market position through effective strategy in order to determine the
competition level in the international marketplace. By using differentiation strategy, M&S can
implement the strategic objective to select one accumulation of group in the international market
and then segmented in proper manner.
Furthermore, it has been suggested to maintain the customer loyalty for long term growth
and development. So as developing the emotional bond with M&S, organization can easily
identify their interest towards particular product as well as service (Mkansi and Nsakanda, 2019).
In this way, it is always support for building the sustainable competitive advantage in future.
In Future competition, M&S should consider the strategic option and select the Franchising
as market entry method. It is similar to the licensing in term of intellectual property which are
sold to franchisee. However, M&S can use franchisees carried out the business into another
international marketplace. In this way, it helps for expanding the business in global world.
Implementation of action that will build competitive advantage.
In today’s competitive international market, M&S strive to gain the advantage, benefit over
competition. It is getting harder to maintain the buyers need and requirement because it
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continuously changed. In this way, M&S will require to build the competitive advantage but
require the possible differentiate strategies to retail potential consumers throughout their client
buying lifecycle. Furthermore, it will be implementing the suitable actions to achieve desirable
competitive advantage in the global marketplace.
Develop an effective corporate culture that attracts the talent- M&S always tried to find out
the talented people who will help for business to increase production and sales. Sometimes, it
helps for minimising the price/cost. It is an essential for organization to fulfil need or
requirement of customers and create better experience (Saravanan, 2019). Within international
marketplace, Customer know the difference between buying from firm where employees are not
happy. That’s why, M&S know about their employees and resolve their issue or problem. In this
way, it helps for gained the competitive edge and build a strong position in global marketplace.
Establish Unique Value Proposition: M&S often use value proposition in context of quality,
price, brand recognition and services (Verhoef and Bijmolt, 2019). In this way, it gains more
competitive advantage while improving the product as well as service in competitive
marketplace. Every consumer is talking about the quality of customer service so that M&S can
implement the value proposition concept. This will help for considering the up-to-date quality
factors that always support for fulfilling the demand of client. M&S can maintain 24*7 customer
service provide with guaranteed on-site care within 2-3 hours.
Identifying the footprint of Idea customers- All customers are not the same, in fact just willing
to purchase an idea and does not make them best client. M&S is targeting the potential client
who will purchase new product and aware about the buying process. The involvement of client
depends upon the decision-making. When client feel that M&S understand them, truly fulfil the
need and requirement client. It is useful for M&S to build competitive advantage while gaining
more popularity within competitive international marketplace.
Reward the behaviour that support mission, value of business- Whether M&S seek to reward
as top performers within global world. But it is important for identifying the perception of buyers
and rewards on the basis of their purchasing power. In case, potential client can purchase items
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from M&S (Schweizer, 2020). so as giving the travel incentive, discount, offers and provide the
opportunities to combine with leisure with business. In this way, it will be developing the strong
relationship with consumers and employees. This type of implementation action will support for
business to gain competitive advantage.
CONCLUSION
From the above file, it can be M&S can be divided into the various products and service as per
the basis of regions, cities, nations and states. The firm is targeting the the young people with
innovative product and service. Firm have positioned itself as their premium brand in super
markets. In addition, the firm have mass marketing endeavours with providing the facilities of
customized programmes. there is focused in keeping in mind with analysing the business
conditions. The firm is implementing the different strategic objective with accumulation of
groups in international markets. This have helped for gained the competitive edge and build a
strong position in global marketplace.
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REFERENCES
Book and Journals
Bolton, R.N. and Shankar, V., 2018. Emerging retailer pricing trends and practices. In Handbook
of research on retailing. Edward Elgar Publishing.
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publications Limited.
Hardaker, S., 2018. Retail format competition: The case of grocery discount stores and why they
haven’t conquered the Chinese market (yet). Moravian Geographical Reports. 26(3).
pp.220-227.
Mkansi, M. and Nsakanda, A.L., 2019. Leveraging the physical network of stores in e-grocery
order fulfilment for sustainable competitive advantage. Research in Transportation
Economics. p.100786.
Saravanan, R., 2019. Is traditional retail moving to e-commerce in the field of the fashion
industry in India? (Doctoral dissertation).
Schweizer, H.J., 2020. Marketing in Integrated Design Engineering—Fundamentals and Effects
on Development. In Integrated Design Engineering (pp. 647-678). Springer, Cham.
Verhoef, P.C. and Bijmolt, T.H., 2019. Marketing perspectives on digital business models: A
framework and overview of the special issue.
Porter, N.W. and Gilkey, L.N., 2020. Separate Effects Validation for Subcooled Boiling in CTF
(No. SAND2020-3890R). Sandia National Lab.(SNL-NM), Albuquerque, NM (United
States).
Joo, J., Eom, M.T.I. and Shin, M.M., 2017. Finding the missing link between corporate social
responsibility and firm competitiveness through social capital: A business ecosystem
perspective. Sustainability, 9(5).p.707.
Jin, H., Miao, Y. and Park, S.T., 2018. A Case Study of Marks and Spencer lost China. Journal
of Industrial Convergence, 16(2). pp.15-23.
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Śmigielska, G. and Oczkowska, R., 2017. Retailers’ competitiveness on global markets.
International Entrepreneurship Review, 3(1). pp.175-196.
Blas, A., 2018. The Competitiveness of the Spanish Clothing Industry.
Online
Marks & Spencer: A Global Expansion to Acquire Lost Momentum? 2016. Available through
< https://link.springer.com/chapter/10.1007/978-3-319-29139-0_7>
M&S International. 2020. Available through
< https://corporate.marksandspencer.com/ccaboutus/mands-international>
INTERNATIONAL DELIVERY 2020. Available through
< https://corporate.marksandspencer.com/aboutus/mands-international>
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