Marks & Spencer International Expansion: Market Analysis & Strategy

This report presents a market analysis conducted for Marks & Spencer to identify a suitable new international market for expansion. The analysis initially considers Jamaica, Thailand, and Argentina, utilizing SWOT analysis, risk assessment, Porter's Five Forces, and cultural analysis to evaluate each country's potential. Through a systematic screening process, Jamaica and Argentina are eliminated due to various risks and lower market attractiveness compared to Thailand. The report highlights Thailand's high growth rate, manageable financial risk, and favorable market conditions, ultimately recommending it as the most promising market for Marks & Spencer's expansion. The analysis incorporates the 12 C’s framework and segmentation strategies to refine the market entry approach, concluding that Thailand offers the best opportunity for Marks & Spencer to grow its business operations.

MARKETING IN A GLOBAL
CONTENT
Marks & Spencer

INTRODUCTION
 The Intent of this presentation is to increase
the understanding regarding market
expansion in new market for the growth.
 The presentation is based on Marks &
Spencer, which is in search of new
developing market where it can expand its
business operations.

OVERVIEW OF MARKS & SPENCER
 Marks & Spencer is one of the famous
multinational retailers of United Kingdom
with head office in London. The company
specialises in home products, food products,
and clothing.

SWOT ANALYSIS
Strength
Private Labels
Innovations
Weaknesses
Incapable to Penetrate
International Market
Low Customer Satisfaction
Opportunities
Expansion in Developing Market
Threats
Competitors – Zara, United Colors of
Benetton, and Gap

SELECTED MARKET JUSTIFICATION
 Jamaica, Thailand, and Argentina have been
selected for the market screening because
Marks Spencer have very less or no
operations in these countries.
 Besides this, these countries are
economically stable which offer opportunities
to different companies.

ROUGH MARKET SCREENING
Countr
y
Accessibility Profitability Market Size
Positive Negativ
e
Positive Negativ
e
Positive Negativ
e
Jamaica Yes Yes Yes
Thailan
d
Yes Yes Yes
Argenti
na
Yes No Yes
Possibl
e
Criteria
Infrastructure
Company/country
ethics compatibility
UK Relationship
Trade Agreements
Language barriers
Time
Trade barriers
Competitors
(direct/indirect)
Disposable income
Exchange rate
GDP Per capita
(wages)
Tax
British product
acceptance
Culture
How big is the
market?
Population size
Innovation
Product preferences
Growth of sector in
country
Culture adaptability

RISK ANALYSIS
Multiple Risk Analysis
PRS Group
(Higher is
Better)
Euromoney
(Lower is
Better)
CIPS
(Lower is
Better)
EIU
(Lower is
Better)
Euler
Hermes
Jamaica 78 Tier 1 Level 2 7.02 D4
Thailand 76 Tier 2 Level 2 4.63 B1
Argentina 71 Tier 34 Level 3 7.02 C4
Sources

RISK MATRIX

BUSINESS PORTFOLIO MATRIX

BUSINESS PORTFOLIO MATRIX
Criteria to Evaluate a Country’s Attractiveness
Criteria 1 Profitability of Market
Criteria 2 Growth of Market
Criteria 3 Competitors
Criteria to Evaluate Compatibility with Each Country
Jamaica Thailand Argentina
Criteria 1 Low Profitability High Profitability High Profitability
Criteria 2 Medium Growth Rate High Growth Rate High Growth Rate
Criteria 3 Low High Medium

PORTER FIVE FORCE FRAMEWORK
Five Forces Rate (High, Low, and Moderate)
Threat of Substitute Low to Moderate
Threat of New Entrant Low
Power of Supplier Low to Moderate
Power of Buyer High
Competition among existing
players
High

TYPE OF MARKET
 Marks & Spencer operates in the
Monopolistic competition, which is also
known as imperfect competition classified by
a number of companies that sell the similar
kind of goods but are not identical.