Marks & Spencer (M&S) Competitive Analysis Using Porter's Model

This report provides an analysis of Marks and Spencer (M&S) using Porter's Five Forces model to evaluate its competitive environment. It examines the threat of new entrants, bargaining power of suppliers and customers, the threat of substitute products, and the intensity of rivalry among existing competitors within the retail sector. The analysis highlights the high entry barriers due to significant capital investment, M&S's strong brand equity, intense competition particularly in the online segment, and the price sensitivity of customers leading to high bargaining power. The report concludes that Porter's Five Forces is a valuable tool for understanding the competitive dynamics affecting Marks and Spencer's market position.

Marks and Spencer M&S
INTRODUCTION
Porter’s Five Forces is a marketing tool
which helps organisations in evaluating
their competitive environment that
could impact business functions and
market position. This marketing model
was purposed by Michael Porters in the
year 1979.
Porter’s Five Forces
The Porter’s Five Forces consist of
five factors that are defined below in
context to Marks and Spencer:
• Threat of New Entrants
• Threat of Substitute Products
• Bargaining Power of Suppliers
• Bargaining Power of Customers
• Rivalry among existing
competitors
Threat of New Entrants
From the above discussion it has been
concluded that Porter’s Five Forces is
a technique which could help
organisations in determining
competitive environment in which
they are operating their business.
CONCLUSION
This component of marketing tool
helps companies in evaluating how
new organisation could enter
industrial sector and impact on
existing organisations. In terms of
Marks and Spencer, the retail sector
contains high entry barrier because it
requires huge capital investment.
Bargaining Power of Suppliers
This component of Porter’s Five
Forces helps organisations in
evaluating how presence of suppliers
could impact business functions of
the company. in terms of Marks and
Spencer, it has been observed that the
company has a huge market presence
on global level across several
countries and possess high brand
equity.
Threat of Substitute Products
This component of marketing tool
assists in analysing how presence of
secondary products could hinder the
performance of original commodities
in the market. In context to Marks
and Spencer, it has acquired a large
market share and customer base
through providing quality products
according to demands of customers
which is difficult for any secondary
items to replace them.
Bargaining Power of Customers
This element of the marketing tool
helps in determining how demands
and behaviour of customers could
influence business activities of
companies. In terms of Marks and
Spencer, it has been observed that
retail industry is highly competitive
and its buyers are price-sensitive
which results into high bargaining
power of customers.
Rivalry among existing competitors
This factor of the marketing model
helps in determining how presence of
present rivals could influence market
position of other organisation. In
terms of Marks and Spencer,
competition is very strong and high in
retail sector which has further
increased in online segment where
people prefer to buy products by
using digital platforms.
REFERENCES
• Do, N. and Nguyen, A., 2020. Entering the Finnish food and beverage
market: Case company: Gong Cha bubble tea brand.
• Fuhg, F., 2021. Did Britain rule the world again? The international
fashion market and the continental look in 1960s
London. Contemporary British History, 35(3), pp.365-391.