M&S Company: Market Structure, Strategies, and Government Intervention

This report provides a comprehensive analysis of Marks and Spencer (M&S), a major UK-based retail company. It begins with an introduction to M&S, highlighting its diverse product range and brand image. The report then delves into the history of the company, tracing its establishment and evolution within the retail market. A significant portion is dedicated to examining M&S's market structure, specifically focusing on perfect competition and its characteristics. The analysis includes the nature of the industry, the strategies employed by M&S, and an exploration of government intervention. The report evaluates how M&S adapts to market trends, customer demands, and competitive pressures, ultimately presenting a detailed overview of the company's operations and market positioning within the context of business development and economics.

Economics

Table of Contents
INTRODUCTION...........................................................................................................................3
HISTORY .......................................................................................................................................3
MARKET STRUCTURE................................................................................................................3
CHARACTERISTICS OF PREVIOUS MARKET STRUCTURE................................................4
NATURE OF INDUSTRY..............................................................................................................6
GOVERNMENT INTERVENTION...............................................................................................7
CONCLUSION................................................................................................................................7

INTRODUCTION
Marks and Spencer is the public limited company is UK. It is a retail company that
produce all type of products like home products, fashion, food products and services and so
more. Its a multinational company customers are set a effective brand image in their mind and
use their products in their life(Ball, Macraeand and Maguire 2013). This company use many
smart and techniques to improve productivity and production of products and give proper
satisfaction to customers. Through this company develop economy of the country and increase
profit and revenue of the country. Its update and change according to market trends and provide
according to customers demands.
HISTORY
Marks and Spencer is the public limited company of UK. It was established in
1884. it is a major multinational retailer company and head office in the Westminster, London.
M&S listed in London stock exchange. Its produce luxury clothes and products to customers and
this is using perfect competition market structure. Founder of this company is Michael Marks
and Thomas Spencer. This company services their products and services in the whole world to
customers. Chairperson of this company is Robert Swannell and CEO Steve Rowe. M&S at this
time 959 stores in UK including 615 only that food products and good. Revenue of this is
10,555.4 million (2016) and profit of this company is 404.4 million(2016). M&S stores are in
UK as well as in India, turkey, Russia, Ireland, France etc(Ball, Macraeand and Maguire,2013).
MARKET STRUCTURE
Market structure is the way to define organisational and market features and trends. Its
help to define market systems and competitors in the market. Market structure though easy to
determine and evaluate marketing services and their trends after that evaluation of their products
and services and update or change their features and quality. Market structure refers to market
completion an their working strategies and techniques and help to determine customers demand
according to that company will produce that kind of products and services to them. In the market
there are many forms of market structure those are help to define structure of the company and
their products feature and status of the company. Market structure can be divide into following:

Perfect Competition: Perfect competition market structure in there are many buyers and sellers
they have all kind of knowledge and information regarding market, customers, market trends,
fashion, strategies and techniques(Rabellotti 2016). In this type of market structure there are no
any restriction and rules / regulations. So there all are free to build a brand image in the market
and sell products at any price according to company status. In this competition market any
company easy to enter and easy to wind up at any time.
Monopoly: In this market structure only one seller of product can be sell product and goods in
the market. There have many restriction and rules nobody follow and adopt strategies and
methods of monopoly products. Its hard to set monopoly in the market. Monopoly means set a
brand image in the market and no one substitute products are available.
Duopoly: Duopoly is other one market structure in which there are only two seller of particular
product and good in the market. There are no any restriction and rules those have to follow both
parties. They can change and update price of products according to market and according to
market trends. They both are free to change in products and their services.
Oligopoly: Oligopoly is the different market structure in which there are few and selected seller
those are produce some selected and special products to customers. In this type of market not
that much competition with each other. They are producing homogeneous and heterogeneous
products to customers(Wills and Lee 2014 ).
In the other hand, M&S company use perfect competition market structure so that will use their
own market strategies and techniques to produce products and effective goods to customers and
they can easy to change price of products according to market trends and customers demand
without any restriction and rules. There are all sellers are freely working with each other but
there are having much more competition with each other. All are trying to build a brand image in
the market. So in the past M&S choose effective and smart techniques so that was set a brand
image in the market and also in the customers mind.
CHARACTERISTICS OF PREVIOUS MARKET STRUCTURE
M&S were using perfect market competition structure. In this market structure buyer and
seller of number is very large. There all are freely working according to company status and
market trends. In this market structure all are freely change and update their products and
services and try to give proper satisfaction to customers. In this market all sellers and buyer have
all kind of knowledge and information regarding market, customers, trends, competition and

their working strategies and techniques. In this market structure all sellers try to build a effective
image in the market and try to increase profit and revenue of the company. Perfect market
structure of many features or characteristics those are help to define this in the effective manner.
Large number of buyer and seller: Perfect market competition in large number of buyer and
seller. There are heavy competition with each other all companies are try to beat each other and
provide better and effective services to customer(Fu, Pietrobelli and Soete 2011 ). All buyers and
sellers have knowledge and informations regarding market and customers so they can easy to
evaluate and update their products and goods.
Freedom of entry and exit of firm: In this market structure any firms or company can easy to
entry and start their own business and easy to exit form the market. There are no any restriction
and rules those have to follow by them. There all are doing their own work for to earn high
profits and build an effective brand image in customers mind. In this market structure cannot
follow rules to seller and buyer they can update and decide goods feature and quality those will
be produce to customers through the company.
Homogeneous products: In the prefect competitive market structure all business firms are
produce homogeneous products to customers. There are all free to produce substitute products of
the other company there have no any restriction.
Profit maximisation goal: These type of market structure in high chances to earn profit because
there are many competitors in the market and many substitute of the products. So there are high
chances to earn profits and easy to set a brand image in the customers mind and in the market. In
the market all firms try to earn profits to beat all other competitors.
Perfect knowledge of market conditions: perfect market competition in there all sellers and
buyers have all knowledge and information regarding market, customers, trends, fluctuations,
fashion, demand etc(Bolton and Jeanne 2011). so they can easy to evaluate to customers and
easy to set and adopt effective and suitable strategies according to situation.
Absence of transport costs: Other one feature of this market structure there are no any
transportation cost of products and goods to customers. So they can easy to select effective
products of the company. In this market transportation cost already added in price of products by
the company, that's why company will not take transportation cost through the customers. And
company can build best image in the customers mind because they can provide goods without
taking cost of delivery and this is the best strategy to attract customers.

Absence of selling cost: Perfect competition market in no include selling cost of products and
goods because there are all business and firms are produce homogeneous products to customers.
So there are not including selling costs of products. In the other hand, perfect market competition
structures used by M&S that's why this company build a brand image in the market and provide
effective products to customers. That's why this company earn higher profits and easy to beat
competitors because this company provide good and effective quality of products to customers
and give proper satisfaction to them.
NATURE OF INDUSTRY
M&S is the retail company at multinational level in the world. Its produce all kind of
products and services to customers like, home products, fashion clothes and so more. This
company using perfect market competition structure to earn high profit and beat all competitors
in the market. In the perfect market competition structure have many buyers and sellers all are
trying to earn high profits and try build a effective image in customers mind and in the market. In
this market structure has no any restriction and rules to follow by the company they can easy to
decide on the basis of market, competition, substitute products and company status. They are
totally free to change price of products and they can freely update their products and give proper
satisfaction to customers so they can easy to attract towards their products and they can use those
products in their life. M&S company of features or natures are under the following those are help
to represent this company.
Provide high quality of products: this company provide good and effective quality of products
and easy to attract high customers towards their products. Its hard to maintain products quality in
the market because there are many competitors those all are try to build a effective and branded
image in the market(Ghosh 2013). So this company already build a effective image in the market
so customers are easy to do trust on products of this company.
Sales promotions: This company to promote sales in the market so they are using many methods
and techniques to achieve targets and goals of the business. Methods and techniques are help to
increase production of the products and increase profit level of the company.
Stores and branches: M&S opened many branches and stores in whole world. Its try to diverse
their business and provide services to customers in the whole world. Through the opened many
stores and branches in the world so its help to increase chances to earn profits and increase

revenue of the company. And promote their business in the world to know all customers or
persons about this company.
Fashion and trends: this company also provide clothes to customers with better and effective
quality so this company determine and evaluate all market and market trends after that this
company produce clothes to customers according to fashion and trends. Through this customers
are get proper satisfaction by this company and easy to attract by these products and clothes.
GOVERNMENT INTERVENTION
Government intervention means when a company in the perfect competition market
structure take wrong decisions regarding their customers and in the market. So government of
the company will take legal actions against that particular company and create some rules and
regulation for this company those have to follow by this company(Buehnand and Schneider
2012). Government take legal cations when a company provide worst quality of products to
customers and that products may be harmful for them, higher price of products and services, no
proper communication with customers, through the company not solve any issues and problems
of customers and threatening to customers and all so in these situation government can take legal
actions against that company and made some legal rules and regulations those are have to be
follow by them.
CONCLUSION
As per this essay, M&S is the retail company that provide branded products and good
quality of services to customers. Customers are easy to trust on these company's products and
they build a effective image in the customers mind and in the market. This company were beat
all the competitors and opened many stores and branches in the whole world. This company were
using perfect market competition structure to increase production and increase productivity of
products. So its help to earn maximum profits and give proper satisfaction to them. M&S provide
clothes to customers according to trends and fashion before manufacturing products and clothes
that determine market and customers needs and wants after that choose the techniques and
strategies according to situation and market portions.

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