Strategic Management: Analysis and Implementation at Marks & Spencer

This report provides a strategic management analysis of Marks & Spencer, a global clothing retailer. It begins with a value chain analysis, examining inbound logistics, operations, outbound logistics, and marketing & sales. The report then delves into strategic analysis using VRIN to assess competitive advantage and Porter's Five Forces to evaluate industry competition. The vision and mission are discussed alongside strategic capabilities. The report explores possible strategies using the Ansoff matrix and concludes with recommendations for Marks & Spencer to maintain competitiveness and achieve future growth. The analysis considers market expansion, product development, and competitive rivalry within the retail industry.

Running Head: Strategic Management 1
Strategic Management Analysis of Marks and Spencer

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Contents
Background......................................................................................................................................3
Task 1...............................................................................................................................................3
Strategic direction............................................................................................................................3
Value chain analysis.....................................................................................................................3
Inbound logistics......................................................................................................................4
Operations................................................................................................................................4
Outbound logistics....................................................................................................................5
Marketing and sales..................................................................................................................5
Task 2...............................................................................................................................................5
Strategic analysis.............................................................................................................................5
VRIN analysis..............................................................................................................................5
Competitive advantage.................................................................................................................6
Industry competition....................................................................................................................7
Porter five forces analysis........................................................................................................7
Task 3...............................................................................................................................................8
Vision and mission.......................................................................................................................8
Strategic capabilities....................................................................................................................9
Task 4.............................................................................................................................................10
Possible strategy.........................................................................................................................10
Ansoff matrix.........................................................................................................................10
Task 5.............................................................................................................................................11
Recommendations......................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
List of figures
Figure 1: Value chain analysis.........................................................................................................3
Figure 2: Marks and Spencer five year plan....................................................................................6
Figure 3: Ansoff Matrix.................................................................................................................11

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Background
In order to operate the business in the international market, it is crucial for the companies
to adopt the effective strategy in the business activities. With the focused and clear strategy,
every company is able to get growth and success in the operating market. Without a well-defined
strategy, any company is not able to deal with the competition in the operating market. With the
help of strategic operations, every business can be more focused, more productive and more
profitable in the business (Analoui & Karami, 2009). This report identifies the existing strategies
used by a company along with the strategic capabilities and resources in the business operations.
For the discussion, the existing and famous clothing company Marks & Spencer is selected.
Marks & Spencer is one of the foremost retail companies providing variety of clothing products
to the customers in all over the world. The company is a global supplier of innovative clothing
and fashion products. There are around 78000 people working with this company. The company
is focused on providing excellent shopping experience to the customers along with wide range of
hospitality options (Marks & Spencer, 2016). In order to achieve the organizational goals and
objectives, company has adopted some innovative strategies in its business objectives. This
report focuses on the innovative and developed strategies adopted by Marks & Spencer to stay
competitive in the market.
Task 1
Strategic direction
Value chain analysis
Main framework for the strategic analysis of Marks & Spencer is value chain analysis.
The value chain analysis can be described as the type of chain focusing upon the inbound as well
as outbound activities using by the company in the business operations. It should be noted that
Marks & Spencer focuses on the delivery of products in the best possible manner. It means the
company uses one of the significant way by which profitability can be increased for achieving
competitive advantage in the market. The value chain analysis of Marks & Spencer is as follows:

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Figure 1: Value chain analysis
(Source: Ferrell & Hartline, 2008)
Inbound logistics
Basically, inbound logistics are the activities which are related to the storing, receiving
and allocating the raw material that go into the manufacturing of products and services. Marks &
Spencer has won GSB supply chain award for the best supply chain practices in the business.
Along with this, the company has also a significant lead due to sustainability program to
implement the some changes in the supply chain at the global level. So, Marks & Spencer has a
strong hold on the sustainability which is the major advantage of the company over its
competitors (Joshi, 2009).
Operations
Marks & Spencer is operating in order to enhance the shopping experience of the
customers and according to the 2016 annual report of the company, it would be working for
increasing the visits of the customers in the stores by ‘inspiring and effortless experience’. Along
with this, the company is also enhancing the customers experience by providing training and
reward to the employees. There are hiccups for managing online operations of the company so
that the online sales of Marks & Spencer can be improved effectively. Further, Marks & Spencer
is also investing in the innovative IT systems so that supply chain management can be
implemented effectively. There are various customers who want to do shopping by the online
media platforms (TaylorWessing, 2015).

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Outbound logistics
The outbound logistics focuses on the collection, storage and distribution of the products
and services in order to provide the customers. Marks & Spencer is working with in-store
shopping along with the shopping by online shopping, home catalogue and select and collect
options. Further, Marks & Spencer is continuously investing in the warehousing which would
work as the automated store National distribution centre to distribute clothing products among
the customers. The company is also focusing on merging with the smaller warehouse to make the
distribution and supply chain management more effective.
Marketing and sales
Marketing and sales activities are helpful in making the customers aware about the
products and convince them to by that particular product or service. Marks & Spencer’s venture
lab is working with the lean start up technology in order to enhance the shopping experience to
the customers (Ferrell & Hartline, 2008). Along with this, multi-channel experience is also
provided to the customers for shopping by using online platforms, mobile, catalogue or by
visiting in-store. It is observed that 60% of customers still prefer in-store experience. Further, the
digital experience and customer engagement with the products is also increased by the social
media platforms. Marks & Spencer is also engaged with high impact promotional tools by using
customer loyalty data to increase value for the customers (Retail Week, 2016). Strategic
initiatives taken by Marks and Spencer in last five years are described in the table.

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Figure 2: Marks and Spencer five year plan
Task 2
Strategic analysis
VRIN analysis
Based on VRIN analysis, Marks & Spencer is the powerful brand along with strong
reputation for high-quality products and strong relationship with various suppliers. This set of
core competencies include precious, exceptional and no other company is able to provide
substitute of Marks & Spencer. This is the significant competitive advantage of Marks &
Spencer in the market. In the current time of intense competition, increased availability of other
Increas
e Sales
Volume
Market Expansion
Product Development
Market Expansion
Entry into new markets
New Products
-New Segments
-Promote new users
-Innovation
-Product replacement
-Increase Usage
-Convert non-users
-Buying competitors
-win competitors
Market Developments

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established brands and well as growing use of online platforms and internet are challenge for
Marks & Spencer’s resources and competences. For the company, it is not easy to develop new
resources and competencies that cannot be easily replaced by other companies to achieve
competitive advantage in the market (Drummond, Ensor & Ashford, 2012).
Competitive advantage
For achieving competitive advantage, Marks & Spencer has market development strategy
which is helpful in enhancing the global presence. This strategy has huge potential for improving
the sales of the company. Along with this, this strategy has potential to meet the financial results
also. With the help of competitive advantage, Marks & Spencer is able to implement product
development strategy which is important to develop new products with the respect to cultural
aesthetics and its presence in the market (Braun & Latham, 2014). Company has various
competitors in the market which are providing quality clothing products to the customers. Those
competitors are Zara, H&M, Benetton and Gap. Marks & Spencer has competitive advantage
over these competitors by effective strategies.
Further, because of its low cost structure, Marks & Spencer is able to make its strong
presence in the global markets. To achieve long-term success and growth, Marks & Spencer
focuses on the continuous product development strategy. The company is dealing with proper
rewards and recognitions of the local trends and patterns which are important for the business.
By this strategy, company is able to achieve competitiveness in the market. So, company is
focusing on the global strategy. The company is providing wide range of products to the
customers. Marks & Spencer is the leading clothing retail store in the Malaysia clothing market.
It is availing new opportunities and creating competitive advantage from the competencies and
assets in the business (The Marketing Society, 2010).
Next, company is seeking to hire talented people in terms of employees. Marks &
Spencer is experiencing competitive advantage in terms of cost, differentiation and strong
workforce, effective knowledge management which are great asset to the company. Marks &
Spencer is seeking competitive advantage with the cost and leadership strategies. Marks &
Spencer always is coming up with the new strategies such as to stay sustainable and competitive
in the market. Along with this, competitive advantage is also achieved by strong offerings and

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high values to the customers. For Marks & Spencer, major key asset is its employees (Luffman,
& Kenny, 2009).
Marks & Spencer is using the source of competitive edge as the employees in the
business. There are talented and competent employees who are using their talents and knowledge
to entertain the customers. The HR department in the company seeks to achieve competitive
edges by the strategic develop of strongly committed people. The employees are using their
skills to meet cultural, structural and personnel tools and techniques. Along with this, there are
some techniques such as equal opportunities of employment to produce diverse work force and
diversity in the business (Jones & Robinson, 2012). In order to retain the edge of competition, it
is crucial to succeed in the work place. With the talented and diverse employees, Marks &
Spencer is able to lead the goals successfully. Effective resources of the company improves
sustainability and decision making process in the business. Marks & Spencer also develops
effective knowledge management strategy to use the ideas for the innovative products and
services. With the help of social media, Marks & Spencer provides cost effective marketing
options and helpful in communicating with the customers (Jansson, 2011).
Industry competition
Porter five forces analysis
In order to analyze the strategic environment of Marks & Spencer, Porter five forces
analysis will be done in this report. This will be helpful in fair analysis of the internal as well as
external environmental in which the Marks & Spencer is operating.
Threat of entry-
Threat of entry at Marks & Spencer can be analyzed based on the loyalty of the
customers which discourages a new company to enter in the retail clothing industry. Marks &
Spencer is operating in the industry since long time and the company itself is the main barrier to
entry for the new companies. It is also observed Marks & Spencer is an expert in the clothing
retail industry so; it is very difficult for other retail chains to enter and share the market with the
company (Marcer, 2012).
Bargaining power of buyers-

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In case of Marks & Spencer, the bargaining power of buyer is strong as they have various
choices for the brands in the market. There are well established brand like Zara and H&M which
are providing quality clothing products to the customers. So, customers have choice to switch on
other brands when they do not get the products based on their needs and requirements (Krish,
2012).
Bargaining power of suppliers-
In case of bargaining power of buyers, Marks & Spencer gives preferences to British
suppliers in the operating market. Marks & Spencer is becoming quite dependent upon its
suppliers. So, the bargaining powers of the suppliers in the retail industry are quite high.
Competitive Rivalry-
Marks & Spencer is facing high level of competition from other companies operating in
the market. The key reason of rivalry amongst the competitors are introduction of quality
products, attractive rates and fashionable clothes based upon the up-to-date fashion etc. along
with this, it is also observed that Marks & Spencer was unable to fight with existing level of
competition operating in the retail market.
Threats of substitutes-
It has been seen the substitute products in the industry are reducing the demand level
products of Marks & Spencer in the market. The main threats of substitute for Marks & Spencer
are Tesco, Sainsbury, Zara and H&M. These companies are providing innovative products to the
customers in the market (Ruddick, 2013).
Task 3
Vision and mission
The vision statement of the company includes major external context and assumptions
that impact on the organizational goals in the business. The vision statement of Marks & Spencer
is to be leading clothing retail company and provide better quality clothing products to the
customers. Basically, Marks & Spencer wants to satisfy and facilitate the customers with the use
of latest technology (European Commission, 2011).

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The mission of an organization is basically an opportunity to convey in the compelling
and concise way to aim to target the market. The mission statement of Marks & Spencer is to
provide the quality products accessible for all the customers. Marks & Spencer has introduced a
new sharper mission statement for the strategic objectives. The mission statement of the
company reflects two dimensions which define the objective of the company along with the
intended contributions in order to enhance the quality of the products and services which are
served to the customers. Those two dimensions are:
 Providing quality products i.e. ensuring high quality products and services to the potential
customers,
 Accessible to all i.e. providing high quality products within the range of all people
including attractive prices (Vizard, 2015)
Strategic capabilities
For Marks & Spencer, excellent and quality products are the key areas of competency.
Along with this, the superior technology also improves the capability of the company in the
business operations. For the company Marks & Spencer, core competencies are very important
as they allow the company to provide consistent quality and high value. The customers as well as
investors trust the company because of superior management quality in the business. The
company has diversified products for the customers which are another added advantage and
make the company competent in the competitive market (Bingham & Eisenhardt, 2011). Brand
image and loyalty of the customers are the crucial resources for the company to run the business.
Due to the core competencies, Marks & Spencer is able to develop a strong brand, good
customer services and excellent quality control in the business. Along with this, rigid
management system in the business makes Marks & Spencer to become successful in order to
implement the changes in the market. So, the company has created more resources to seek new
opportunities in the market. Further, Marks & Spencer has permitted autonomy for the store
managers and they adopted various processes of buying the material along with seeking for
overseas suppliers (Ruddick, 2016).
Apart from that, the internal organizational structure of the company is flat in nature. This
motivates the employees to participate in the decision making process of the business. By this
organizational structure, the relationship between the employees, management, suppliers and

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customers are getting stronger day by day which has positioned Marks & Spencer at the core of
market. With the combination of resources and capabilities, Marks & Spencer is able to achieve
unique competency in the market (Jeannet & Hennessey, 2010).
Task 4
Possible strategy
By analyzing the strategic initiatives of Marks & Spencer, it is analyzed that the company
has ability to sustain competitive advantage and economic performance in the market. For the
sustainable business in future, Marks & Spencer has to adopt some effective business strategies
and those are as follows:
Ansoff matrix
Ansoff matrix includes various strategies for the future business i.e. product
development, market penetration, market growth and diversification. These are four ways in
which company can attain beneficial market expansion.
Figure 3: Ansoff Matrix
(Source: Spencer, 2015)
Market penetration
This factor focuses on the growth of accessible product in the presented markets to
enhance the market share. Marks & Spencer can penetrate the market by focusing on more
hostile promotional campaigns including sales promotions and competitive pricing strategies.