Business Project: Marks & Spencer's Competitive Advantage Analysis

This report provides a comprehensive analysis of Marks & Spencer's (M&S) business operations, competitive position, and strategic challenges. It begins with an introduction to business administration and the importance of competitive advantage, followed by a detailed examination of M&S's competitive standing in various markets, including an application of Porter's Five Forces model. The report explores how M&S can leverage business activities like cost leadership and differentiation to gain a competitive edge and enhance customer satisfaction. Furthermore, it addresses the challenges M&S faces when trading globally, such as selecting target markets and navigating cultural and linguistic differences. The report also discusses theoretical tools to enhance business performance, concluding with a summary of key findings and recommendations. The report covers topics from competitive analysis to strategic challenges.

Business Project

Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................4
Part 1..........................................................................................................................................4
A. Comparative analysis of the company’s competitive position in various market............4
How company business activity results in gaining competitive advantage...........................6
B. Discuss the different challenges the company needs to consider when trading across
globe......................................................................................................................................7
Part 2..........................................................................................................................................9
Discuss what company needs to consider to enhance their business in market. Support it
by appropriate theoretical tools.............................................................................................9
CONCLUSION........................................................................................................................11
References................................................................................................................................13
Books and references...........................................................................................................13

Introduction
Business administration is the unit where the group of individuals that works composed to
attain administrative targets and purposes, it includes suitable manner of division of work as
the individuals in the organisation that also split the roles and responsibility as among the
team members in the company. The main concentration of any organisation is to work to
improving their effectiveness and output for using the numerous implements and methods as
it develops a significant manner to remain the growth and make income and also to improve
their output in respect to handle with the maximising the competition in the market and to
gain viable benefits in the market place (Kiráľová, A., 2019). The modest benefits is the
aspects that agrees the company to make and gain more profit than their challengers in the
market, it is also termed as the procedure of making quality of products and services that are
compared to their competitors in the market. The competitive advantage works as an
operative tool for the business to improve their productivity and profitability in the market. In
respect to gain the competitive analysis in the market, the company needs to evaluate their
competitive position in the market, considering the position that helps business to understand
where they stand in the market and where they want to reach in the future, so in respect to
know and analyse their competitive position in the market the company can perform the
comparative analysis, this analysis supports company to know the several factors that can
affect the working and effectiveness in the competitive market, also the corrective actions
that can be taken to continue their competitive position in the market and endure to gain
competitive advantage (Kamboj, and Rahman, 2017). The management consider in this
report is Marks & Spencer. Marks & Spencer is one of the top retail company that offers
variety of products like clothing, home appliances and food commodities to their consumers.
Marks & Spencer was founded in 1884 by Michael Marks and Thomas Spencer in Leeds with
their headquartered in London, England and united kingdom, attending at globally. At recent
the company is having more than 960 retail outlets across the United kingdom, more than 600
retail outlet sell only food item covers the majority of city. This report covers detailed
comparative analysis of the company's competitive position and how it effects in gaining
competitive advantage that are also different challenges that needs to be considered while
trading abroad. In addition to this suitable theoretical techniques that are used to deliberate
the company that needs to take into deliberation to ensure their business.

Main body
Part 1
A. Comparative analysis of the company’s competitive position in various market.
Marks and spencer company is the largest company of UK. As it is dealing in selling
various numerous of products and services. It deals in retailing sector, electronic and home
appliances. There are certain number of competitors of company which are producing similar
products and services. These are Tesco, Sainsbury, Asda and Morrison’s etc. these companies
are one of the biggest companies of UK and operating in all over the world like Marks and
spencer. company has to gain competitive advantage in the market among all these
competitors. Competitive advantage is the factors that makes company and organisation
different and unique from various competitors (Adivar, Hüseyinoğlu, and Christopher, 2019).
This works an effective technique for marketing manger to enhance their productivity and
sells and customer satisfaction. Also, it helps the company in gaining their competitive
advantages in the market and among its competitors. M&S company is operating in all over
the world. So to gain competitive advantage of every market. They have to make effective
marketing strategies and increase their productivity. Competitive advantage includes brand
image, customer satisfaction, quality of products and services and loyal base of customers.
For analysing the company competitive position in various market is the competitive analysis
of Porter’s five forces model which is discussed below:
Porter’s five forces model
Porter’s five forces model is the models which is considered to be a marketing tools and
techniques that is conducted by a marketing manager to analyse the various factors which can
that can impact the company and its profitability level. This model helps the company in
analysing the power of bargaining suppliers and customers and also the level of competitors
which are coming in near future. This model is conducted to analyse the external factors
which can affect the business environment (Alaaraj, Mohamed, and Bustamam, 2018). There
is a brief discussion about the model mentioned below:
 Threat of new entrants (entry barriers): Retailing market and organisation a have
high entry barrier because their capital investments are huge to enter into the market
among competitors. Also, to achieve cost efficiencies and economics of scale so that
is why retailing company like Marks and spencer would be difficult to achieve new
player. The case of peer is something different, as Marks and spencer popularity is so
much high as if another company is to enter into the market to compete with M&S

then they should have to come with high quality of products and services to break the
trust of customers of marks and spencer. so, it is very difficult for new entrants
(Porters 5 Forces Analysis of Marks and Spencer Marketing Essay, 2021). Keeping
other competitors at bay is difficult because company’s products are qualitative and
also, they are offering discounts and less prices sometimes on occasions. So, it said
that threat of new entrants is low.
 Threat of substitute products: Marks and spencer continuous focus on their
innovation ideas and their strategies to enhance their brand image and to make it
strong in the market in front of competitors (Arend, and et.al., 2017). They also have
to focus on meeting customer demands and their satisfaction. The clothing and
groceries business is increasing very much as it is growing and many of the subtitles
are coming on the way. They are coming with new innovations and promotional
strategies, many new designs and at reduced cost. Food business is already under
attract by many of the competitors. Competitors of M&S are Tesco, Sainsbury and
Morrison’s etc. they also sell similar types of products and services to the customers
in order to increase their satisfaction. As threat of substitute is high because these
competitors are selling their products and clothes at cheaper rates and also Tesco is
introducing Dinner jackets.
 Bargaining power of buyers: Bargaining power of buyers are high because the
concentration of buyer is high and they can change their taste and preferences at
anytime and shift to another brand. There are various alternatives for the customers so
that can easily shift to another brand and another company which is offering them low
prices. For this Marks and spencer should have to build its loyalty and offer more to
customers to match their customer demands and needs. If there is any move towards
the disloyalty then this can affect overall business outlook. As in previous time the
UK economy is going to be slow down because companies as more focus on cutting
their prices and meeting customer needs.
 Bargaining power of suppliers: Bargaining power of supplier is low. M&S is a
listed company with enormous turnover and suppliers want their goods and services to
retailer defers to spread the great customer base (Armenski, Dwyer, and Pavluković,
2018). In addition, Marks and spencer is not dependent on suppliers as other stores as
it usually sells own branded products and services. This means that company
purchases raw material and not finished goods which is favourable margins. As many

of the suppliers are from developing countries and they are depending on modern
companies for their contracts.
 Intensity of competitive rivalry: Competition level in retailing sector is very much
as there are certain competitors of M&S company and these are Tesco, Sainsbury,
Morrison’s etc which re also selling similar products as company is selling. The
problems are that most of the competitive firm are trying to introduce new products
and services to gain competitive advantage. Clothing competitors of M&S company is
Next, Zara, Topshop etc. company has long tried for differentiate themselves from
competition by positing their products and services in the market in front of
customers. So, the intensity of competitive rivalry terms is so much high for the
company.
So, this the analyses of external environment which is done through Porter’s five forces
model, as by this company will be able to know what factor can affect the busines high nd
what low and to which factor they have to more focus on.
How company business activity results in gaining competitive advantage.
Competitive advantage plays major role in enhancing the profitability of the company and
the organisation. Company has to gain comparative advantage in the market by introducing
something new products and unique products which helps them in gaining their profitability
and customer satisfaction both (Banerjee, and Mishra, 2017). There are various business
activities which helps company in gaining competitive advantage among competitors. There
are some of the factors and forces which are being considered by company in gaining
competitive advantage are discussed below:
Marks and spencer company can make use of cost leadership strategy to gain competitive
advantage among competitors. Under this strategy company can offer products and services
at lower prices and maintain their cost for gaining competitive advantage in the market. Also,
they can cut down the cost of transportation and reduce operation cost. Company is using this
strategy to gain competitive advantage and gaining customer satisfaction also (Chen, and
et.al., 2017). This will result in increasing their profits and revenue.
 Another strategy is differentiation strategy which can be used by company in order to
gain competitive advantage among competitors. Company can introduce and new
products and make unique products which is different from its competitors and gain
customer satisfaction. Bu this their productivity also increases and results in
increasing their profitability.

 Next, company can gain competitive advantage in the market by using unique strategy
and added products and services which can fulfil customer demands and results in
increasing customer satisfaction. By this company will be able to continually interact
with their customer effectively and this will bring increase in customer loyalty
towards the brand and organisation.
B. Discuss the different challenges the company needs to consider when trading across globe
There are number of task available that business might face when they trade across
the country. In the context to Marks & Spencer, organisation desires to deliberate several
tasks while trading across the country that are as deliberated below:
Choosing the accurate target market : It is very important for the business to place
themselves well. Linguistic have the major issue as the most of the individual that cannot be
able to purchase the creation from the business’s website if the merchandises that cannot be
described in native linguistic. In respect to draw the probable consumer the business that
requirements to interpret the magnitude the capacities as according to the local capacities that
also to deliver prices in the local notes (Liu, and Atuahene-Gima, 2018). The targeted
marketplace is the field from where the business that has the probability of the major trades
and that field of the market is very important for the business as it will not only maximise the
transactions of the business but also supports the business to become popular. In context to
Marks & Spencer, the business that uses their internet website to reach as many individual as
possible by adjusting their websites as according to the confined linguistic.
Having a trusted logistics partner : The business needs to discover the trusted
logistics partner for doing external company as they supports the business to store account to
achieve their orders that grip to returns full provide the consumer facilities. When the
consumer gets effective logistics facilities that they are likely to make other directions as
again that will not only maximise the returns of the business that will also help the business
in building goodwill to cross boundaries. As the effective logistics is one of the major factor
that can attract the development of the business in the new nation as people likely to be more
involved in the business who can deliver them their better facilities (López-Robles, and
et.al., 2019). In reference to Marks & Spencer, that they are creation for sure that their
consumer that are getting their products on the correct time and as according to their
accessibility.
Lower international costs : The business might try to discover the key for global
currency interchange. The currency interchange that can be a big obstacle for the business as

firm’s trade with high rates of interchange that are actually facing this issues. The interchange
rates are one of the most essential portion of the income as without the interchange of the
business that cannot get their earnings for future use. The consumers that are naturally wages
in their local exchange and it is the job of the business to exchange it in respect to get the
exchange they want. For that interchange government charges some amount from the
business (Lu, Papagiannidis, and Alamanos, 2018). The quantity that are taken by the
administration from the business that is known as exchange rates. In context to Marks and
Spencer, they are travel money facilities to provide themselves the service of currency
interchange that means that they are promoted from this previously.
Dynamic regulatory changes : The organisation will incessantly have to come up
with the controlling variations for dominant in the frugality of the nations in which they are
trading. The company wants to take constant monitors with the controlling changes in respect
to enhance that the goods and their facilities of the business that are satisfying all the legal
supplies. In context to the Marks and Spencer, they are trying to continually remain efficient
as according to the new instructions and guidelines of the nation in which they are trading. In
respect to make their business ethical and responsible that they make sure that all the legal
supplies that are get fulfilled by the business.
In-consonant standards : There are several guidelines as across the nation and the
businesses that wants to fulfil with those values as per to the nation they are trading as
exclusively. The business that does not have the control to trade with the same terms in every
country that they are dealing with the big disadvantage for the business as the corporation
have to ensure that before doing trade in a particular nation that they wants to ensure that they
fulfil with their directions first. In context to Marks & Spencer, the organisation that is
currently distributing in 30 countries and its essential for the business to deal with each and
every nations rules and regulations as separately.
Long waiting to enter the market : As to all the issues and the controlling passivity
of the access time of the business in the particular marketplace that gets overdue by which
they are not only maximise the cost of the business but also make the huge alteration in the
development approach of the business. The interval as sometimes that takes too much phase
for the business that they have to suffer all the harm (Mody, Suess, and Lehto, 2017). The
business goes to skill as the cross border in respect to release the probable market as before
with other competitors because of controlling interruption the competitors that gets
themselves for get prepared for the entrance in the marketplace with even less problems. In
context to the company, the organisation will get entered in the market of diverse businesses

and they also had suffered various difficulties as in inflowing each of the marketplace but that
doesn't mean that if now they arrive any other marketplace then they will not suffer any
trouble. With each new possible that comes new regulatory issues.
Huge compliance cost: The price of trading with all the instructions and guidelines
as plus the postponing the cost to makes as really costly for the business to enter any new
market. This will affect the values of the goods and facilities that are presented by the
business (Öz, 2019). The cost of production will maximise when the company will trades
with new problems and capitalise in their time as expenses and will the final have the burden
of that is on the consumers and they have to recompense the values for that. It is essential for
each multitude organisation to ensure that the organisation for coming in the nation that must
fulfil with all the guidelines and instruction of the nation. So that the native organisation will
feel protected and the external corporation cannot lead the host nation's market. In context to
Marks & Spencer, the business tries to satisfy all the parts and duties which is important for
the business to fulfil before arriving into any new marketplace.
From the above report if the company desires to be an effective in the prospective
marketplace of other country and it is important for them to fulfil with all the instructions and
guidelines of that nation. By fulfilling with all the guidelines and principles of a particular
country the business will able to build trust as among to the consumers of the country (Sautto,
and et.al., 2017). The following tasks that needs to be get considered as effectively for
dealing across the country also to improve their business.
Part 2
Discuss what company needs to consider to enhance their business in market. Support it by
appropriate theoretical tools.
While growing competition in the market, it so most essential for the organisation to
enhance their business and increasing their productivity (Daly, and Frikha, 2017). This can be
done through by analysing internal and external factors which can impact the business
performance and its activities. This is done through by suing certain theoretical aspects and
framework. In context of Marks and spencer, company is analysing its internal and external
factors through some framework which are discussed below:
Macro environment analysis
This is one of the best and commonly sued frameworks which is conducted by company in
order to analyse external factors of company which can affect business performance in
serious way. This includes PESTLE analysis which is conducted by organisation in order to

analyse various factors which can affect business function. This stands for Political,
economic, social, technological, legal and environmental forces which are to be most
considered by the company weather they are introducing any products or whether they are
expanding their market globally etc. In relation with Marks and spencer, in order to gain
competitive advantage in the market, factors like political stability, economic and social
trends, customer taste and preferences, government rules and regulations, technological
changes, environmentally friendly laws these should be considered in mind. So that they can
gain more competitive advantage in the market (Ferreira, and Fernandes, 2017). This will
result in increasing the productivity of the employees and business both and increasing
profitability of the company. These all factors are properly considered by the marketing
manager of the company and they more focus on enhancing the productivity of their business.
Ansoff’s matrix
This is one of the next framework models which is used by company when they are
introducing any new products in the current market or in the new market. This is essential
tools which is used by may of the organisation to grow and develop their products and
services. This consist of four strategies which are used for enhancing any business (Huang,
and Wang, 2017). These are market penetration, development of product, development of
market, and last is diversification. Let discuss about these strategies in detail:
Market penetration: This is the first strategy which is used by company to enhance
their business. As in this company increase their sales of exiting products in existing market
or already established market. As this can be done through offering discounts, customer
loyalty cards etc to increase their profitability and productivity.
Development of product: in this strategy, company focus on innovating something
new products and services and established them in to the existing market. This will help them
in attracting customers which are looking for unique and new products from the existing
brand. As in this company can introduced any products which is not related with that firm
and gain competitive advantage.
Development of market: In this next strategy, company can introduce existing
products into the new market. As this is done to attract new customer which are of new
market (Shin, and et.al., 2017). This is done when company wants to expand their business in
various market or global markets. This attracts new customers towards their brand and results
in increasing their profitability and revenues.

Diversification: This is considered to be the riskiest strategy because in this company
launch new products and services in the new market whether it can be globally. In this
company came up with new products and launch it in new market to gather new customers by
their new ad unique products (Kaivo-oja, and Lauraeus, 2018). But this is considered as most
risky because if customer do not like the product them company might get loss.
According to the given strategies, M&S company is using product development
strategy as they are introducing new products into the exiting market and they are more
focusing on innovations. So that their employee’s productivity increases and also business
enhanced.
CONCLUSION
From the above report it has been concluded that, business organisation will supports in
directing respective people for well operating of the business and their activities with the
main objective of providing products and their facilities with the goal of making profit and
increasing their efficiency. In the above report in respect to measure the company's
competitive position in the various market a comparative study that is done by evaluating the
porter's five force model, this model that supports in considering the diverse forces that are
available that can affect the viability and competitive location of the management. The forces
that like to risk of new entrant into the marketplace with advanced creation and facilities that
will also high the experience of competition that are available in the marketplace that can
affect the effectiveness of the management and the bartering power of the buyer and suppliers
for holding the consumers as in the direct way to influence them. The company holds in the
market place, also various substitute products that are available similar to the present
company that can also result the inexpensive position in the marketplace, in such condition
having strong modest benefit in the marketplace also becomes very significant for the
business, how company's business action will leads to attaining the advantage that is also
mentioned above, various methods like cost leadership where the goods and facilities are get
offered at lower prices for differentiation the plan of action where the products and services
of the company will differentiated from its competitors also managing the strong policy for
offering the unique and value added goods to its consumers that will helps the company for
improvement and preserving the competitive benefits for the business in the marketplace.
Hence, the different challenges the organisation will requires to take into deliberation for
trading as across the border for smooth working of the policy as across the border, and also

the competitive benefits that can be get maintained and are also mentioned in the above
report.