LSC MBA: Strategic Analysis & Implementation of Marks & Spencer

This report provides a strategic analysis of Marks & Spencer, a leading retail company, focusing on its strategic direction, value chain analysis, strategic initiatives, and competitive advantages. It employs frameworks such as VRIN analysis and Porter's Five Forces to assess the company's resources, capabilities, and industry competition. The analysis covers Marks & Spencer's value chain, including inbound logistics, operations, outbound logistics, and marketing & sales, highlighting their sustainability program and customer experience initiatives. The report also examines the company's competitive advantages, such as its strong brand reputation and cost leadership strategies. Furthermore, it evaluates the threats and opportunities faced by Marks & Spencer, considering factors like new entrants, bargaining power of buyers and suppliers, competitive rivalry, and substitute products. The report concludes with recommendations for Marks & Spencer to enhance its market position and achieve long-term success.

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

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Contents
Explanation......................................................................................................................................3
Introduction..................................................................................................................................3
Company profile..........................................................................................................................4
Strategic Direction.......................................................................................................................5
Value chain analysis.....................................................................................................................6
Strategic initiatives.......................................................................................................................7
Strategic Analysis........................................................................................................................7
VRIN analysis..............................................................................................................................9
Competitive advantage...............................................................................................................10
Industry competition..................................................................................................................11
Porter’s five forces analysis.......................................................................................................12
Vision and mission.....................................................................................................................13
Strategic Capabilities.................................................................................................................14
Possible strategies......................................................................................................................15
Ansoff Matrix.............................................................................................................................16
Recommendations......................................................................................................................17
Conclusion.................................................................................................................................18

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Explanation
Introduction
• Strategy can be considered as the tactical course of action which is developed to achieve
long term objectives. It is science as well as art of planning and organizing resources for
the most effective and efficient use in the changing market environment.
• Strategy in an organization includes of what management is deciding about future
business operations along with the scope of the business. it also involves managerial
choice among various alternative action programs in the business, various business
approaches and competitive moves to gain organizational goals and objectives.
• The formulated strategies have long terms implications on the business operations. it is
also framed by the top management of the company. In other words, the strategy or
strategic actions may be called as the ‘game plan of management’
• With the focused and clear strategy, every company is able to get growth and success in
the operating market. With the help of strategic operations, every business can be more
focused, more productive and more profitable in the business. In order to operate the

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business in the international market, it is crucial for the companies to adopt the effective
strategy in the business activities.
Company profile
• 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. This study identifies the existing
strategies used by a company along with the strategic capabilities and resources in the
business operations.
• With the help of strategic operations, every business can be more focused, more
productive and more profitable in the business.
• For the discussion, the existing and famous clothing company Marks & Spencer is
selected. Marks & Spencer is one of the leading retail companies providing wide range 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.

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• In order to achieve the organizational goals and objectives, company has adopted some
innovative strategies in its business objectives.
• This study focuses on the innovative and developed strategies adopted by Marks &
Spencer to stay competitive in the market.
• The company mainly deals with the clothes, luxury products, food items etc. Because of
its unique strategy and competitive advantage, the company became more profitable
company.
Strategic Direction
• Value Chain analysis
 This is the way to analyze the business activities of a company in order to create
competitive advantage in the business. Key framework for the strategic analysis of
Marks & Spencer is value chain analysis.
 The value chain analysis refers to 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. Value chain represents
internal activities used by a company while converting inputs into outputs.

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 Objective of value chain analysis is to analyze the competitive advantage of Marks and
Spencer into discrete activities or operations and examine hoe every activity
contributes to enhance the cost position of the company or the comparative willingness
of the customers to pay.
Value chain analysis
 Inbound Logistics- The Company has a significant lead due to sustainability program
Company has strong hold on the sustainability which is the major advantage of the
company over its competitors.
 Operations- the Company is also enhancing the customers experience by providing
training and reward to the employees. Marks & Spencer is also investing in the
innovative IT systems so that supply chain management can be implemented effectively.
 Outbound logistics- Marks & Spencer is working with in-store shopping along with the
shopping by home catalogue, online shopping and click and collect options. company is
also focusing on merging with the smaller warehouse to make supply chain more
effective.
 Marketing and sales- Marks & Spencer’s venture lab is working with the lean start up
technology in order to enhance the shopping experience to the customers. 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.

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Strategic initiatives
In last five years, Marks and Spencer have an existing business by penetrating the market and
develop some markets. Company has used diversification strategy including defensive and
offensive. The reason of using defensive strategy is the spread the risk of market contraction
when existing product or market is not providing further opportunities. The strategy is also
offensive which include new areas of the market. The above given figure describes the strategic
initiatives taken by Marks and Spencer in last five years. In year 1, company was focused on
increasing market share and clothing line revenue by market expansion of new products. In the
year 2nd and 3rd, company was focused on product development and market development with the
new products. In 4th year, company adopted contingency plan to enter in the new market by
focusing on non-users. In 5th year, company was focused on the market developments by winning
competitors’ customers.
Strategic Analysis

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VRIN analysis is important for analyzing the resources and capabilities of the company while
operating the business in the competitive market. There are basically four important features in
order to analyze the resources of the company. Those factors are valuable, rare, inimitable and
non-substitutable.
• Valuable- When resources are able to provide the value to the company and they can be
the sources of competitive advantage in the market.
• Rare- In the company, resources have to provide unique strategy in order to achieve
competitive advantage in the market as compared to the other companies. So, the
resources must be unique.
• Inimitable- Resources can be the sources of sustained competitive advantage if
competitors are not able to achieve them. If the resources are valued and rare but
competitors are able to achieve the resources then they cannot be source of competitive
advantage.
• Non-substitutable- Resources must be able to replace by any other valuable resources in
the business operations. If two resources can be used separately to execute same strategy
then they are strategically equivalent. Such resources cannot be used as the source of
sustained competitive advantage.

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VRIN analysis
• VRIN analysis-
 Marks & Spencer is the powerful brand along with long standing reputation for high-
quality products and strong relationship with various suppliers. This set of core
competencies include valuable, rare and no other company is able to provide substitute of
Marks & Spencer. This is the important and major competitive advantage of Marks &
Spencer in the market.
 In the current time of intense competition, increased availability of other 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.

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Competitive advantage
• Competitive Advantage-
 For achieving competitive advantage, Marks & Spencer has market development strategy
which is helpful in enhancing the global presence. 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.
 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.
 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 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.

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Industry competition
Porter’s five forces is effective framework that uses five industry forces to analyze the intensity
of competition and profitability level in the industry. The five forces analyze the industry
structure and level of competition in that particular industry. If there are strong competitive
forces in the industry then the industry is less profitable for the companies. The five industry
forces include threats of new entrants, bargaining power of suppliers, bargaining power of
buyers, threats of substitutes and competitive rivalry. It is important for every company to
evaluate the competitive position of business in the industry and to identify the strengths and
weakness so that market position can be strengthened. Porter’s five forces framework is very
useful in formulating the strategy of Marks and Spencer as it shows how powerful every five key
forces in the clothing industry.

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Porter’s five forces analysis
 Threats of New entrants- 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.
 Bargaining power of buyers- 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.
 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