Strategic Analysis Report: M&S Competitive Advantages and Strategies

This report provides a strategic analysis of Mark and Spencer (M&S), a British multinational retailer. It begins by identifying key strategic issues faced by the company, including quality, pricing, and the adoption of advanced technology. The report then delves into an analysis of M&S's resources and capabilities, highlighting critical success factors (CSFs) such as manufacturing with design responsibility, supplier relationship management, brand management, customer service, and excellent working conditions. These elements contribute to the firm's competitive advantages. The report further examines M&S's competitive strategies through Porter's Generic Model, focusing on cost leadership, differentiation, and focus strategies. The analysis underscores the impact of these strategies on M&S's market position and profitability, concluding with suggestions for strategic improvements. The report aims to provide a comprehensive overview of M&S's strategic landscape, offering insights into its challenges, strengths, and strategic choices.

STRATEGIC ANALYSIS
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1). Strategic issues facing by Mark and Spencer........................................................................3
2). Analyse resources and key capabilities to achieve competitive advantages of organisation 4
3). Suggestions for improving strategic issues............................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Strategic analysis is defined as the process in which business strategies are to be
developed and implemented by undertaking research and environment where it operated. It is
necessary to maintain the strategies and its abilities for the purpose of achieving set goals or
future outcomes with an effective manner. In other words, strategic analysis is the process to
conduct research on business environment including internal and external in which firm runs or
operates for the purpose of formulating better strategies in an effective way (Lozano and et. al.,
2012). This report is based on Mark and Spencer plc which is a British multinational retailer and
its headquartered in Westminster, London. It deals in clothing, luxury food products and home
products etc. the assignment will define about key strategic issues that faced by an organisation
and identify resources with key capabilities for achieving competitive advantages. It will assess
the organisation's competitive strategies with issues and provide suggestions for better
improvements
TASK 1
1). Strategic issues facing by Mark and Spencer
In Marks and Spencer, there are various issues which are facing by them regarding
different factors. The firm need to develop strategy that help in enhancing growth and
profitability in better manner. Also company manager require to analyse various issues or
problems which create bad on its reputation. There are three key strategic issues which are
described as under:
Quality strategy – The M&S quality strategy main aim is to provide high quality based
products and services to their customers. They are innovate various unique goods such as
clothes, home products and luxury items along with deliver quality which satisfying customers
needs and wants. In this, the major issue occurs is lack of skilled and experienced labour who
have not ability to produce quality based commodities (Beecham and et. al., 2013). Sometime
workforce are repeating design of products which lose their customers and they bored with same
designs. The quality issue is said to be “strategic” because the company policy is to develop
quality products for attracting new buyers but its price is high due to its quality. According to the
PESTLE analysis “S” which is social factor that provide major impact on Marks & Spencer

quality because they are develop high quality based of food items so they gain more customers
otherwise they lose their buyers.
Price strategy – M&S is such an retail organisation which never fluctuate their prices
because they are offering best and unique products in market area. For example, if cost of an
jeans is 4000 before one month and after 2 or 3 months later price of that product remain same. It
is their strategy to constant cost of their products and don't reduce because such this is an brand
which offer high quality products with some unique features (Cottrell and et. al., 2014) .
Although, in such kind of planning major issue is that it will reduce sales of M&S because of
expensive goods and these are not affordable by everyone. Most of the people don't want to
invest their hard earned money on retail products. Moreover, according to PESTEL analysis
social factor gives major impact on Mark & Spenser price strategy because high cost goods and
services reflect luxury and social status in society. If an individual use M&S products in their
daily life then they will easily gain high status in society from which is their belongings.
Advance Technology – Mark & Spenser use high and advance technology for production
of their products and services. They believe that by utilising updated tools and equipment they
can produce unique and fine quality goods. But implementing such technology is expensive
because it result in high cost. If production of clothes and accessories done through this then,
cost of production will be high. Thus, such practices simply reflect on price of products and these
automatically get high. Major problem raise because of this is high cost of production, expensive
goods & services, require more labour in operation department and many more. Although,
advance technology give wide impact on working of M&S because they can manage their work
on required time as well can produce fine quality of goods and services (Campbell and Rahman,
2010). Technological factor of PESTEL gives wide impact on working of business because now
a days tools and getting more advance so that operation department of every company can work
easily. By modification in technological factor their will be several benefits to enterprise because
they can offer good and fine quality of products to their customers. Apart from this, it will also
assist in maintaining constant quality of offerings.
Above mention are three strategies of Mark & Spenser which get affected through
element of PESTEL and give wide impact on working of the same enterprise.

2). Analyse resources and key capabilities to achieve competitive advantages of organisation
Critical Success Factors (CSF's) are to be considered as factors or activities which must
be required for ensuring the success of business firm. It generally undertaken for analysing
various data and business in an appropriate manner. These factors are used significantly for
presenting as well as identifying major key factors in which organisations have to focus so that
they can get success with an effective way. It play an important role in identifying strengths and
key components that beneficial in attaining best possible outcomes with the help of enhancing
productivity and productivity in an adequate manner. CSF (Critical success factor) can be
defined as a high level goals which generally used for meeting business objectives. Therefore, it
play a vital role in achieving organisational success and beneficial for entire department of the
company (Evans and et. al., 2011). Mark and Spencer also considered CSF's for creating better
products or services so that more customers can be satisfied in an effective manner. In the
industry critical success factors, every companies used this factors for operating their business as
they have some uniqueness as well as specific CSF's which support to them in increasing more
demands and attracts number of customers towards organisation's products or services in an
appropriate way. Thus, efferent industries have different CSF's where included call centres,
manufacturing, health care, retails, educations, business services and many more examples of
this factors. In other words, every and each firms have their own critical success factors which
support to them in generating higher demand and get best possible outcomes while running
business. Mark and Spencer plc is dealing with varieties of good and services including
clothings, home appliances and luxury foods etc. in the market place.
The resources and capabilities of Mark and Spencer plc are various that differentiate to
them from other competitors and help in attaining competitive advantages in an efficient way
(Bowers, 2010). They always used different types of resources and capabilities for the purpose of
producing varieties of products or services to meet consumers demands and needs as well. Some
of key resources and capabilities of M&S are as following; Manufacturing with designs responsibility: This is one of the best resource for getting
success by company as they focused on empowering various suppliers and other key
people so that better quality of products can be manufactured. M&S is selling its products
with unique designs as they formulated strategies for manufacturing best quality of
products so that more customers are to be attracted towards company.

 Manage supplier relationships: This is another major capabilities to manage the
relationship with other suppliers and produce effective goods or services that M&S does
for achieving success as well. Brand management: Mark and Spencer plc have good reputation in international market
so they focused on managing as well as maintaining brand image among competitors so
that better competitive advantages can be sustained. Excellent customers services: This is another capabilities of M&S that they focused on
providing better products or services and meets their desired needs so that goals can be
achieved (Turker and Altuntas, 2014). M&S consider the customers view points and
feedbacks after getting goods or services so that better relationship can be maintained and
managed. It is essential in attaining long term objectives and goals with an appropriate
manner.
 The excellent working conditions: In the industry, there is necessary to have effective
working environment and healthy relationship among employees so that better outcomes
can be attained. M&S has created more appropriate working environment which
facilitates in making conditions better as it also considered in Critical success factors for
the firm so that effective competitive advantages can be achieved in adequate ways.
Therefore, Mark and Spencer plc is considering various kinds of resources and
capabilities that beneficial in getting competitive advantages. They also using Critical Success
Factors for identifying their key components of achieving success. Company formulated
strategies for the purpose of generating higher demands and satisfying customers desired
expectations as well.
Porter's Generic competitive strategies for Mark and Spencer plc:
Every organisation focus on analysing the environment and competitors in the market
that can affect on the business in various ways. They undertake Porter's Generic Model for
identifying competitive strategies in which determine the organisation's position as well as
profitability which can be above or below the industry average (Knowles and et. al., 2011).
M&S considered this model for formulating better strategies so that goals or objectives can be
gained. Porter's generic model is mentioned below; The cost leadership strategy: In this strategy, company consider the lower cost for
gaining competitive advantages as well as success among tough competition in an

effective manner. M&S also formulated the strategies for attracting number of customers
towards company's products or services. This strategy is beneficial in increasing more
sales and revenues so that profits can be generated by M&S plc. Company also focus on
enhancing market share by charging lower prices that directly affects on the sales of
company as well. It is best strategy for leading a particular market through reducing
prices or costs of products or services. The differentiation strategy: In this strategy, company focus on making its products or
services more effective and efficient that differentiate them from other competitors
(Spitzeck and Hansen, 2010). It is depends on the nature of industry as well as products
or services of company that help in attracting huge audiences towards particular items in
an appropriate way. In this involves the features, durability, functions, quality and added
values that make the products more unique and effective as well. M&S also considered
this strategy for getting higher returns. In this required proper research and development
so that better innovations can be brought for creating effective goods or services as well.
It is best critical successful factor for Mark and Spencer that facilitates in getting
competitive advantages in an efficient way.
 The focus strategy: Company is focusing on its target customers so they concentrate on
particular niche market. It is essential in analysing and identifying target audiences so
that sales can be increased with better manner. M&S also considered this strategy for
serving best to the customers as it support in building good relations with them and
making strong brand image as well (Linkins and et. al., 2013). Company have selected
group of customers for particular customers so that goods and services can be provided to
the right customers at right time.
 Differentiation leadership- As per this element, an organization is going to target larger
markets and trying to gain competitive advantage through differentiation across the entire
industry. In this strategy, manager is selecting one or more criteria which is consider by
purchaser at a marketplace and then positions the organization in unique manner to meet
that requirement. Basically, this scheme of marks and Spencer associated with the
demanding of premium price for a specific goods in order to highlight the higher
production charges as well as added extra value to the product provided for the
consumers. Moreover, this method includes such as;

 High quality of product.
 Strong brand image or customer recognition.
 Broad distribution channels across the nation.
3). Suggestions for improving strategic issues
The Marks and Spencer need to formulate their strategy which help them in gaining
attention of more customers. SAFe is stands for Suitability, acceptability and feasibility. The
SAFe test assist in analysing that company strategic issue which occurs within business
operation on daily basis. These are described as under:
Suitability – It is one of the most essential factor in the SAFe strategy which help them in
identify the suitability of organisation strategy and how this will be used in attracting large
number of buyers (Samy, Odemilin and Bampton, 2010). It is mainly deal with overall rationale
of company strategy. They are determining key points which address the strategic issues with
underlined by organisation strategic position. From the above description, it can be analysed that
quality strategy consider as developing quality based products in which major issue that occur is
lack of skilled workforce who have not ability to producing innovating products. So they will not
gaining attention of new customers towards the M&S goods. For instance, if company have
unskilled staff members so that they does not able to develop suitable quality based commodities
which satisfying their desire buyers needs and requirements in proper manner. While conducting
this test, the firm can easily find out their buyers choice and preferences. Along with this, firm
need to assessed various factors such as environmental suitability, expectation suitability and
capability suitability. After that, company separate their customers suitability according to their
demand and wants.
Acceptability – It is mainly concerned with expectation of recognised stakeholder with
the standard performance outcome that can be in the form of risk, return and response. This
factors of SAFe strategy model is identify and measure the returns, risk and stakeholder response
which provide outcome related to specific tactics (Aaker and McLoughlin, 2010). Such type of
returns will be evaluated on the basis of benefits which expect from stakeholder and it can be
financial or non financial. In this, price strategy of marks and Spencer in which they never
change its price of products whether they lose their customers due to expensive goods. The major
issue occur is that it will reduces sale of company products due to costly items and by this

everyone does not buy such commodities at the same rate. For example, if Marks and Spencer
charge high price on their products so this will reducing sales volume of company. It is necessary
for firm is to provide reasonable goods which gaining attention of large number of buyers
towards their products and services. For this, most of the people does not try With the help of
this test, the firm can find out the acceptability regarding price among customers and also they
need to deliver those rates which are affordable by every buyers.
Feasibility - In SAFe strategy model, feasibility portion is actually the making or
breaking of any selected scheme. This mainly show concern with the availability of resources,
abilities and aptitude for really implementing the strategy (Thompson and Martin, 2010) . It is
known as key to the success, thus fiscal feasibility requires to be assessed by predicting as well
as evaluating cash-flows of organisation. This can be done by conducting break-even analysis
and via lots of other financial tests. “Quality Strategy” is one of the important strategy of Marks
& Spencer. According to this, company wishes to manufacture superior quality merchandises in
seek attention of their customers by meeting needs and demands of them. But they are facing
issues regarding designing better quality products and services. People who are performing at
work premises of M&S are not having proper skill. In-fact, they are also not so much
experienced, thus unable to produce innovational goods and services. Employees are producing
old fashion or similar pattern of clothes again and again. This is impacting negatively on the
purchasing rate of buyers since they are not showing interest in buying old fashion garments as
they wish to wear modern and attractive clothes. As a bad result, they are moving to other
companies in search of garments of their taste and choices.
M&S can solve this issue by implementing SAFe model. In this regard, they should focus
on arranging huge amount of capital or revenues since by doing so they will be able to hire more
skilled and experienced workers at their organisation (Richard and et. al., 2013). They can take
loans from banks, creditors and other members for raising their financial feasibility. After that,
Marks & Spencer can easily recruit qualified participants by offering them opportunity of
earning handsome salary packages. Hence, as a fruitful outcome, company can attain their aims
& objectives of developing best quality garments and several other commodities. Large number
of new customers get easily attracted towards their deliverables in-turn. Company can thus able
to earn higher amount of profitability and productivity as well.
Improvements:

There are various improvement which require to conduct by marks and Spencer at the
time of overcome with such strategic issues within an organisation (Richard and et. al., 2013).
After that, they will gaining attention of large number of buyers by provide them reasonable rate
of products. Such improvements are described as follows:
 Marks and Spencer need to produce quality based products with the help of skilled and
experienced labours who have ability to develop unique commodities for attracting more
buyers. They should always change their design of clothes and varieties of food item.
 Firm require to provide affordable rate of goods and services through which they can
acquire new customers who willing to purchase only this company products.
Lastly, they need to adopt new techniques and methods which help them in developing unique
and new design commodities that gaining attention of buyers.
CONCLUSION
From the above described report, it can be analysed that strategic analysis is the process
which conduct research of organisation and also its regulating environment to develop specific
strategy. It help in providing accurate direction towards getting desired goals and targets in
proper manner. In this, there are three major strategies which includes price, quality and
technology and also identifying its main strategic issues of marks and Spencer firm. The SAFe
test is used by company for address the major issues which need to make improvement for future
time period and also gain attention of customers.

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