IT and Competitive Advantage Analysis for Marks and Spencer Retailer

This report provides a comprehensive analysis of how Marks and Spencer (M&S), a major British multinational retailer, utilizes Information Technology (IT) to gain a competitive advantage in the market. The report begins with an introduction to M&S, its history, products, and business objectives. It then delves into the application of Porter's Five Forces model to analyze the competitive environment, assessing factors such as rivalry, supplier power, buyer power, threats of substitutes, and new entrants. The report further examines the value chain analysis of M&S, focusing on primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and service. Finally, the report reflects on the importance of IT in achieving a competitive edge, summarizing how IT optimizes resources, improves business processes, and enhances customer relationships within the retail sector. The report concludes with a list of references used.

Managing Information
and Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction of company.............................................................................................................3
TASK2.............................................................................................................................................4
Porter's Five force model............................................................................................................4
TASK3.............................................................................................................................................6
Chain analysis of organisation....................................................................................................6
TASK 4............................................................................................................................................8
Reflection and summarization of how IT is helpful in achieving competitive advantages in
market..........................................................................................................................................8
CONCLUSION................................................................................................................................9
Books and journals....................................................................................................................10

INTRODUCTION
Information and technology is being increasingly used in businesses in the contemporary
competitive marketplace so as to increase the competitiveness of company and to increase
customer base by attracting more number of customers. IT management refers to practices,
procedures and policies related to managing IT in company so that it can be used to optimise
resources and staffing, improve business processes and communication. IT helps businesses to
store and use information related to them in an efficient manner so that business products,
services and processes can be improved and high profits can be generated for company. This
report is based on Marks and Spencer which is a major British multinational retailer that offer
high quality clothing, home and food products with its headquarters in London, UK. The
company was founded in 1884 and employs about 80,787 workers in company. In this report the
role of IT in M&S, analysis of competitive environment of company, use of Porter's five forces
mode, value chain of company, inbound and outbound logistics of company etc. will be
discussed so that a company can gain a competitive edge in market.
MAIN BODY
Introduction of company
M&S is an international British retailer which was founded in 1884 by Michael Marks
and Thomas Spencer and has its headquarters in London, UK. The company deals in high quality
fashionable clothings and also offer home products and food products through its 1463 stores
which are present all across the world. There are about 80,787 employees working in the
company and earns a revenue for about £ 10.6 billion euro (Storey. and Song, 2017). Product
provided by M&S is clothes, eatables and high standard of house hold products. This company is
only selling products that are made in Britain. The current CEO of this company is Steve Rowe
and he has been appointed in the year 2016 and is holding the position till present time. Business
of this company is spread across 157 countries in the world. M&S has established as an clothing
wear for men and women in United Kingdom. Objective of this company is to provide quality in
products and introduce innovative trends to survive in a long term. Vision of the company is to
be efficient in working and gives best out of its services to its customer. Company has targeted
customers who are ranged between 25- 60 age group and also those people who are looking for
latest trends and stylish wear in clothing. Those customers are also attracted by company who are

looking for new and tasty food items. The company mainly deals with denim and sell jeans of
new style, shape or sizes (Hemker, 2020). It has improved its sales by 20% in recent years.
They also introduced special item like prawn sandwich in which hight quality of prawns are
used and is served with an unique sauce. This become very popular in the market. This Brand is
enhancing itself day by day to increaser satisfaction among its customers. This has been done by
M&S company through fluctuating prices of its product which made it approachable to
customers of every class. The company has also maintain its standard in quality. To enhance
their quality and make it more superior M&S is using marketing plan that is mid term plan of
marketing.
TASK2
Porter's Five force model
In Porter's five force model there is a framework or a skeleton structure that is there to
help industries and organisations. It analyses those elements which impacts the organisation in
growing itself within a market (Wilkerson 2018). This model basically creates an influence over
both internal and external factors of an organisation. Concepts which are covered in this model is
related to both customers and buyer. Further five forces of this model is explained below in more
detail.
Rivalry among existing competition in a market: The force is used to measure the
amount of competitors which are present in a market (Omboni, Caserini. and Coronetti, 2016). It
is also there to make an analyse over the phase which is there in present market and condition of
rivals of the company in it. This is also there to high light those areas and point which has made
rivals a strong rival. It can be understood in a way as techniques used by other company to
sustain in market and create a competition for existing country. Range of rivals are very large
and there is lot of rivals present in market to compete against M&S because it is an cloth and
food product manufacturer. Due to increasing competition with companies like Tesco, Zara.
M&S has modified its prices for both clothing wear in order to attract more customers which are
from different classes of society. This is also done for the purpose of maintaining its suitability
and healthy competition in market. This can create an negative impact over Marks and Spencer
in a way that loss of customers leads toward lack of selling of product and decreases rate of
profit.

Suppliers Bargaining power: In this force all the power lies with the suppliers which
means that supplier has to keep a check over the supplies which are being made by company in a
market. In other manner new products coming in the market is to be checked by M&S in order to
enhance there product and in crease there supply. Bargaining capacity of seller is effected
because of presence of uniqueness in a product supplied by another supplier. It increases because
of the various suppliers present in an market and fluctuation in prices by suppliers. According to
the present situation of market M&S has to change its suppliers for purchasing raw materials.
This is necessary as company purchases goods in large amount. As M&S is an manufacturer and
a bigger brand this provides it with an opportunity of creating price according to the preference
of its customers. Being a private company they are not going to be impacted in terms of money
from changing supplier. Hence this is not going to create any kind of threat over the company
Marks and Spencer (Maetzler,, Klucken. and Horne, 2016).
Bargaining power of buyer: Vision of Marks and Spencer is focused over creating a
satisfaction for its customers in every aspect of quality and product. As lot of buyers are their in
an market and its main focus is over brand value, cost efficiency and its personal satisfaction. In
this force companies main focus is on sensitive nature of customer and over the preference he
made for purchasing of a product. In context to M&S capacity of bargain by the customer is
lesser. So, buyer is not going to switch its cost and the other alternatives available in market is of
very high value. Now M&S has a benefit in price making. It can enhance its relationship with
customer which is going to ultimately leads in rising of customer's percentage and the company
is going to be able to gain sustainability in the market. Due to its consistency in maintaining
quality for its customers, M&S is able to cover a large area of market and also is able to provide
satisfaction to its customers. As company is having higher percentage in retail sector this helps it
in reducing bargaining power of customer (Barak, 2017). They are working over generating
strength with its customers and protecting its basic structure.
Threat of substitutes: This deals with the number of alternatives which is arising or are
present in market and is selling same product as that of M&S. In order to determine these
substitute similar products sold by other company is to be recognised. As there is going to be rise
in percentage of substitute risk over competition is going to be more. Threat of this kind is more
on M&S because there are lot of other seller who are selling same product and is offering lesser
rate. Competitors like Tesco and sainsbury is giving tough competition to M&S because

manufacturing of latest trending clothes is easy for such brands. These brands are selling the
products at lesser cost which is directly impacting M&S in negative manner. Also in food sector
there is lot of competition because of presence of lot of variety in market. In this case M&S has
to uplift standard of their product in order to differentiate them from other product of same
nature. M&S is achieving these standards by creating uniqueness in formation of its products and
clothes. This done for the purpose of creating an ease for customer to identify M&S products and
clothing.
Threat of new entrants: As a new product has been launched in a market and new
variations is created in market that provides motivation to new firms. It also gives opportunity of
profit sharing to new firms entered in the market (Rizzo, Charles, Boehler,. and Meziache,uh.,
Cho. and Kim, 2017). This force is their for determination of the customers preference over a
brand. Also for the influence of government in that particular industry. M&S is an well
established company in retail sector and has high cost rate, so it is not going to be easy for it to
create an effect in the minds of its customer. To come into retail sector a company needs to
invest higher amount of capital for this M&S has a plus point of quality of product and its
differentiation. This gives them ability to sustain in a market and leadership efficiency. So
loyalty of a customer towards M&S is going to maintain their loyalty towards it. Due to this
advantage M&S is able to create large amount of profit and sustainability is also maintained in
market.
TASK3
Chain analysis of organisation
Porter's value chain is those activities in which elements are analysed for the purpose of
improving business (Rohitratana, Kaewta. 2017). It is also essential for its growth and profit
gaining capacity. Dues to these activities and their introduction, changes which are going to
occur is going to increase in sales of the company. It plays an important role for an organisation
like M&S because this helps in identification of those activities that is effecting business of a
company in very crucial manner and ca not be ignored. After the analysis under value chain is
done then Marks and Spencer is able to take out those primary and supportive activities which
helps company in gaining growth and development of customer range. Primary activities
includes sales, services, operations, logistic and marketing and secondary activities are those

activities which is acting for upliftment of product and services such as infrastructure, human
resources, management and technological development. M&S is helped through its primary
activities because these activities is directly effecting the production and selling of goods and
services to its customer. Such primary activities are explained below:
Inbound Logistics: Activities of these kinds are their for the development and
strengthening of relations with supplier (.Dancho, Fitzpatrick. and Li, L.Lioukas.). This is done
in order to maintain availability of raw materials on time. Building of stronger relationship with
the supplier is going to help a company in getting more facility and support in getting less delay
over supply of raw materials. Marks and Spencer is going to be benefited out of this analysis in
a way that challenges related to bringing of raw materials into finished product is identified. Due
to this analysis the managers of Marks & Spencer is going to make delivery of raw materials
within time an is going to save production process from getting effected in any manner.
Operations: These are their which helps the raw materials in formation of finished
goods and the activity is processed upon receiving of raw materials by the company. The
activities of Marks and Spencer that comes under this are assembling of products, its packaging,
testing and machining. All these activities can be done only when company has received all the
materials required for producing of finished product. Due to the analysis of this activity their is
going to increase in efficiency and productivity which is going to enhance competitive advantage
of a company. Due to this consistency in growth is achieved by the company.
Outbound Logistics: In these kinds of activities are related to the supply of products to
the customer. Marks & Spencer is going to be benefited out of these activities as it is going to
help in handling, scheduling, processing of order and also transportation cost is analysed (,
Reuer. and Zollo, 2016). This helps Marks and Spencer in determination of sources which bare
responsible for competitive advantages. Cost and management of time and delivery of goods is
an very important thing. After this analysis there is going to be reduction in the possibilities of
delay for delivery.
Further in this primary activity there are various types of activities that is their to be
performed by an company which helps in increasing coordination and facilitation of primary
activities. Company Marks and Spencer is following lot of supportive activities which has helped
them to increase their value among their customers.

Technological development: Development of terotechnological aspect is the most
important thing in an organisation because of this only lot of advantages over competitive level
is gained. Company Marks and Spencer it is very important from the point of view that it is
going to add value to the production, distribution and marketing activities of the company. Due
to this activity only there is an differentiation in the technological process and in the production
activity. In this way only it provides support for the enhancement and uniqueness in research
over design of products. Activities related to research and development come under the same
category only (Trahan and et. al. 2017).
Procurement: The value of procurement activity in value chain is that it needs to check
over the pro curation and saving of raw materials, equipment and funds of a company. This is
their to help in production of finished goods. Company Marks & Spencer has to consider or is
required to consider these activities because if the cost is managed. Then inbound and outbound
logistics of the company is managed in an efficient manner. This leads towards the development
and growth of company in more effective and faster rate. Also the efficiency in operation is
going to improve because it is going to lead in upliftment of the manufacturing of a product with
in its time limit and increases efficiency.
TASK 4
Reflection and summarization of how IT is helpful in achieving competitive advantages in
market
As it is a well known fact that in present scenario every work, business and company is
performing its function by using information and technologies. The major benefit of
introduction of IT sector in these organisations is that this has helped in enhancing performance
and providing it better opportunity. Also gives guidance towards those measures which is correct
for the growth of an organisation. It gives an opportunity to an organisation to in crease
consistency of performance and create an systematic manner for performing a particular task.
Company Mark and Spencer is benefited out of this because it is going to increase performance
and make it better. In every manner and in tough situations the company has to face direct
competition in market. Competitors such as Tesco plc , ASDA and other are their. Companies
such as M&S is willing to improve its results and for this it has to first need to focus over
introducing of their latest trending techniques and technology. Let us understand this with an

example that management has brought out a way under which the process of online payment is to
be accepted. This is going to make payment for customers easy and payment is going to be done
through online mode. This is going to increase saving of time and then requirement to carry cash
is also going reduce. Second thing is that there is going to be more focus over online store and
less over physical store. This is going to attract customer and going to cover large area in terms
of customer. This is also going to increase comfort of customer that is going to attract customer
at larger to the organisation.
Their are some other ways in which effect over the company like M&S in further
addition to this there is to be introduction of artificial intelligence which can effectively guide
customers in terms of product and also benefits related to them. This is going to bring out the
uniqueness and innovation from the part of the company which attracts customer at large in a
market. It is also going to give very tough competition to its competitors. IT is used in
management as it is going to help in enhancing of new techniques and technology. In automatic
check I very useful for the customer as the problem of standing in a line is going to b sorted out
and payment smoothness is also maintained. Marks and Spencer needs to understand latest
technique which is going to help them in achieving its goals and objectives.
CONCLUSION
In the above file it has been analysed that usage of technologies of latest kind is going to
help in enhancing performance of company. Further it is understood that it helps an company in
attracting new customers and achieving of goals. Internal and external factors are helpful from
point of view that it allows M&S to deal in positive manner to deal with its rival. Lastly this is
going to help in dealing and identification of those external factors which can creates issue in
achieving goals to an organisation. .

REFRENCES
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