Business Strategy Report: Applying Porter's Five Forces to M&S

This report provides a strategic analysis of Marks and Spencer (M&S) using Porter's Five Forces model. It begins with an introduction to business strategic planning, emphasizing its role in determining a business's growth direction and setting goals. The report then applies Porter's Five Forces—competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants—to the context of M&S. The analysis concludes that M&S faces significant competitive pressures, particularly from substitutes and new market entrants, while having moderate buyer power and low supplier power. The report emphasizes the importance of strategic planning for achieving business objectives and goals. Desklib provides students access to similar solved assignments.

Business Strategy (P3)

Content
 Introduction
 Porters five forces
 Conclusion
 References

Business strategic planning is all about determining
the direction in which the business needs to grow. It
involves setting goals and objectives for the business
organisation. It is high level thinking in which the
business can be expanded and for the future growth of
the business organisation.
Introduction

Application of Porter’s Five Forces model
It is a model that identifies five competitive forces that shape every industry and helps in
determining the company's strength and weaknesses .it is also used to understand the
industry structure to determine the corporate strategy. Here the analysis is done in
context of Marks and Spencer company
•Competitive Rivalry
•Supplier Power
•Buyer Power
•Threat of Substitution
•Threat of New Entry

Competitive Rivalry
Rivalry against the existing customers- This
refers to the competition in the market
between the different firms of same industry.
For example if it is a fashion industry so there
are many existing competitors in the market
which have their own uniqueness and been
known for their brand. As Marks and Spencer
operates in a very competitive retail industry.
The competition does not take toil on a long
term profitability of the company

Bargaining power of Suppliers
Bargaining power of suppliers- This is a factor which addresses how easily
the suppliers can drive up the cost of inputs Suppliers are are firms which
provide raw material to the industry. It is the potential of suppliers to increase
or decrease the price of the material by maintaining the quality it is proving to
its customers. It is affected by the number of firms As Marks and Spencer buy
its raw material from number of suppliers so the bargaining power of suppliers
here is low. If they negotiate the company can buy from the other supplier.

Bargaining power of customers
Bargaining power of buyers- In this factor it is
considered the ability of customers that how much it
can lower the price of the product / services charged
by the firms in an industry. Here the bargaining power
of the buyers will be moderate because it is well
known brand and it has good customer base and the
buyers here cannot bargain.

Threat of Substitute
Threats of substitute products/ services- This force focuses on the
substitutes product/ services which means that can be used in place of the
company's product with the other brand. Here the threat of the substitutes
of the products and services is high because if Marks and Spencer deals in
the products which the similar other brands provides. The customer can
easily switch to the other brand.

Threat of new Entrants
Threats of new entrants- The company's power is affected due to the new
entrants of any business in the industry. This threat require a lot of potential in
terms of technology. The thereat of new entrants is high for Marks and Spencer
because there are various other competitors with lowering costs and providing
new products to the customers. The company needs to face these challenges and
create effective barriers to safeguard its competitive edge.

Conclusion
From the above mentioned PPT, it has been concluded that every business
organisation plans a strategic planning for achieving its objectives and goals. The
framework of Porters five forces is mainly used for the purpose of conducting the
industry analysis.

References
Khashei Varnamkhasti, V. and Noornejad Vanoush, V., 2020. Presenting a
Strategic Control Model in The Oilseed Extraction Industry. Journal of
Business Management Perspective. 19(43). pp.41-63.
Kompalla, A. and et. al., 2017. Tailored automotive business strategies in the
context of digitalization and service-oriented models. Calitatea. 18(156). p.77.

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