Business Strategy Analysis: Marks & Spencer's Global Expansion

This report provides an analysis of Marks and Spencer's business strategy, examining its diversification efforts, particularly its expansion into new markets and product lines. It explores the extent of the company's diversification, identifying the types of strategies employed, including related and unrelated diversification. The report investigates how Marks and Spencer has adapted its global ambitions, considering changes in consumer preferences and the competitive landscape. Furthermore, it delves into the strategic relationships the firm has developed to achieve its goals, such as alliances with other companies and its e-commerce strategy. The study also highlights the significance of market research and competitor analysis in shaping the company's product development and marketing initiatives. The conclusion summarizes the key findings and emphasizes the importance of strategic planning in the retail industry.

Business Strategy

Table of Contents
1.) Introduction................................................................................................................................3
2.) To what extent is the firm diversified? What type of diversification strategy is the firm
following..........................................................................................................................................3
3.) How have the firm's global ambitious changes? What sort of relationship firm developed with
other firms for achieving goal..........................................................................................................4
4.)Conclusion ..................................................................................................................................5
References........................................................................................................................................6

1.) Introduction
The present study is based on Marks and Spencer which is known for selling variety of
products and services at different countries. It have 843 stores in UK and more 200 stores in
different country such as Russia, Ireland, Poland, India etc. in the present report discussion will
be done on diversification strategy which Marks and Spencer chosen for entering into a new
market. Apart from the way company make relationship with other firm in order achieve its goal
and objectives on time.
2.) To what extent is the firm diversified? What type of diversification
strategy is the firm following
Diversification is a form of growth strategy which involves a significant increase in
performance objectives usually sale and market share based on past level performance.
Company get diversified because of one primary reason that is bigger is better. Marks and
Spencer has diversified a lot for introducing new product into new markets (Zhao, Wen and
Zhou, 2013.). Moreover, risk is very high but still it implemented right strategy to beat its
competitor who are already exist in that market.
Marks and Spencer sales variety of product such as clothes, accessories, kitchen items etc
and it continuously innovates new product for increasing market share. The organization
diversify its business like other retail company that is Sainsbury finance, Tesco finance, Tesco
mobile etcs. Diversification help organization in different in capturing lard market share. Firstly
they started selling cloth and then move to drinks and foods. This diversification support
organization for standing on their feet again and encourage to achieve their goals. Further,
company also diversify its business in different country by selling different types of high quality
products to its customers.
There are different type of diversifications strategy which include development of new
product and modernization, new technology licensing etc. Marks and Spencer alternative for the
essential growth in which it adopts the following strategies that is related diversification,
unrelated diversification. The strategy used by marks and Spencer is both because it products are
related and unrelated (Peteraf, Gamble and Thompson 2014). In addition to this cited
organization also make new product for new market and it implements this strategy by adding
differentiation factor in its products and pushful new commodity in new market. This above

strategy is very effective which help in increasing its Market share in the United Kingdom. The
organization increase its number of customer which help it in increasing the market share. Marks
and Spencer conduct market research and then develop new product for new marker where
demand is high this leas to reduce the risk of loss which company can face at the time of selling
new product in new markets. A present now organization make its brand more popular by
making innovate product which lead to increase in sale and objectives. By selling product in new
market company can easily expand its business in different country for capturing large number of
market share.
3.) How have the firm's global ambitious changes? What sort of relationship
firm developed with other firms for achieving goal.
“High expectation are the key of everything” with the changes in lifestyle of people and their
taste and preferences company also modified its goals and objectives. By conducting market
research it helps in identifying the factors which are becoming barrier in achieving goals and
objectives. Further its ambitious is to regain clothing crown which is dented by Global rivals.
The organization is still one of the biggest sellers if a of Britain. But today it is an weaken big
by other brand such as primark and H&M which have remade the rage trade as a global business
in which buyers power far stand out that of national chain.
Marks and Spencer conduct competitor analysis in order to identify the way its
competitor are developing product and services. Further, competitor analysis is a critical part of
organization marketing plan (Hill, Jones and Schilling, 2014.). This help cited organization in
making product and services with unique features. The organization firstly need to place its
competitor in a strategic group, then for each competitor group it need to list their marketing
objective, its profitability and current and past strategy. Marks and Spencer can identify its which
product of its competitor sale is high in market. Then it can easily make same product with
unique product for increasing its sale product. Further, with the help of competitor analysis it can
easily identify types of media other competitor is using for increasing awareness of its product
and services among customer. Apart from this in order to achieve goal Marks and Spencer signed
a strategic alliance with confetti network (Fan, Lau and Zhao, 2015.). This partnership with make
Marks and Spencer to improve its reach to customer and make good relationship with Europe
number one wedding portals. This make easier for the organization to reach its existing and new
customers. After partnership company started focus on E commerce strategy and make online

websites for grabbing the attention of large number of customer in concern to achieve aims and
objectives
4.)Conclusion
From the above report it can be concluded that diversification strategy help Marks and
Spencer in selling new product in new market with high risk. Market research help organization
in identifying its potential customer and taste and preference of customer which support in
modifying the product and services as per their need. Marks and Spencer are making innovative
product which help company in expanding its business in new country. Further it can be
concluded that company can used competitor analysis so that it can easily identify what type of
products its competitor are making and what media they are using for promoting its products.
Apart from this it also signed agreement with confetti network for selling its product through
online website. This help organization in reaching to its potential customer in different country.

References
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Kim, H., Hoskisson, R.E. and Lee, S.H., 2015. Why strategic factor markets matter:“New”
multinationals' geographic diversification and firm profitability. Strategic Management
Journal, 36(4), pp.518-536.
Peteraf, M., Gamble, J. and Thompson Jr, A., 2014. Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
Zhao, J., Wen, R. and Zhou, F., 2013. Competitor analysis for electronic business area based on
web user logs-A case study on 11 electronic commerce websites [J]. Journal of Information
Resources Management, 4, pp.53-62.