Analyzing M&S: Strategies and Changes in UK Fashion Retail Market

This report provides an analysis of the UK fashion retail industry, focusing on Marks and Spencer's strategies and responses to market changes. It begins with an overview of the company, highlighting its history, global presence, and financial performance. The report then details key changes within the UK fashion retail landscape, employing a PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors impacting the business. Changes within the microenvironment, including the influence of customers, suppliers, marketing intermediaries, workers, and competitors, are also discussed. The report further explores the strategies and tactics used by Marks and Spencer, such as business transformation, value creation, and strategic priorities, to maintain competitiveness and customer satisfaction. The report concludes with recommendations for Marks and Spencer. Desklib provides access to this document and a wealth of study resources for students.

Retail Theory and Practice
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Contents
Introduction................................................................................................................................3
About company..........................................................................................................................4
Key relevant changes within the UK fashion retail...................................................................5
Relevant changes within the Micro Environment......................................................................8
Strategies and tactics to be used.................................................................................................9
Recommendations....................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
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Introduction
The retail industry in the world is increasing. With the impact of globalization, the major
changes which have been observed include the changes in lifestyle. The living has been
improved and many companies are promoting it also. In the UK, the fashion and clothing
industry has a hub. The people out there are fashionable and create a new fashion via
improvises and innovative clothing, fashion accessories, footwear etc. This report is prepared
with the motive of providing information about the fashion and retail industry of UK. The
motive of this report is to detail the information about the changes and strategies of fashion
retail market. The fashion retail is improvising every day with the entrance of new designer’s
every day. Their creative thinking and innovative ideas of looking different are accepted by
the retail fashion industry on demand of the public. The market share and successful
marketing have increased in retail fashion. The retail clothing industry has increased the
business of retail fashion.
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About company
The company which is selected to understand the fashion retail industry in the UK is Marks
and Spencer. The company is a big brand all over the world and has a great customer base.
The origination of this company is from the UK and it has its retail stores all over the world.
Different parts of the world are promoting the sales of the company and its products and
services have been used by various customers. The company is public limited company and
was founded in 1884. It has been established 134 years ago. The headquarters of the company
is in London, United Kingdom. Marks and Spencer were founded by Sir Michael Marks and
Thomas Spencer. The company has revenue of £ 10,622 million. The company has
approximately 90,000 employees and company’s net income is £ 115.7 million. What is the
growth status of the company which is dealing in so many countries around the world? The
companies like this have an immense growth but when they have a down market, these
companies lose much. Marks and Spencer have served the public with a quality product
which is accepted by the people saying that it is a fair value for money. This leads to the
growth of the company since 134 years ago. The quality of the company’s products was
never compromised. The company has also focused on the growth of the organization by
international expansion. The international expansion of the company helps it in growing the
market share and increasing its expansion by improving the quality.
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Key relevant changes within the UK fashion retail
Fashion is something which has the fast process of changing, the trend and fashion of
clothing rapidly change within the world. The fashion changes over the time according to the
new arrivals and designer look in the clothing industry. Marks and Spencer have always
introduced various new and creative clothing fashion senses which have improved the
business and customer base of the company. The changes in fashion are necessary to meet the
trend. The important aspect is to look different (Çifci, et. al., 2014). The brands like Marks
and Spencer have various competitors against which the competition could be achieved by
introducing different and effective look. The designers of the company work for the
improvement in clothing and fashion sense of the company.
The relevant changes which were observed in Marks and Spencer regarding products and
services of the company are the changes in UK fashion retail (Çifci, et. al., 2014). Here is the
pestle analysis of the company which could provide the information about the changes which
has observed in UK fashion retail. By taking the example of company Marks and Spencer,
the changes could be analyzed by the use of Pestle.
Pestle analysis
Political Analysis
Liberalisation in eastern
Europe
Free trade agreements
Economic Analysis
Rising Incomes
Social Analysis
Changes in consumer
lifestyle and taste
Technological Analysis
The Internet has become a
powerful sales channel
Applications are taking it off
Legal Analysis
Rules for standard packaging
and eco-friendly material and
process of manufacturing
Environmental Analysis
Waste management
Plan A was developed by the
company
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The pestle analysis is the examining process of factors which affects the business and its
products and services. The pestle analysis is done in the macro environment of the company.
The factors which affect the company in the macro environment are provided in this analysis
(Turker and Altuntas, 2014).
Political Analysis- The political analysis of the company includes the factors which affect
the company politically. The influence of political parties and environment on the company’s
products, services, and fashion is determined under this (Turker and Altuntas, 2014). Marks
and Spencer has a liberalization in Eastern Europe which provides that the policies of Eastern
Europe affect the marketing and selling of the company’s products. There are also free trade
agreements which are signed by various authorities and retail industry commission (Bouzon
and Govindan, 2015). This agreement affects the selling of products and services of the
company. Due to these agreements
Economic analysis- Economic analysis refers to the fact which affects the company and its
products and services. The Marks and Spencer has a positive economic impact as the rise in
income of the people has increased the sales of the company. The products and services of
Marks and Spencer are offered at a premium quality which costs more to the customers
(Pedersen, et. al., 2016). Due to increase in income of people and economic growth of the
country, the sales of the company have also increased.
Social analysis- Social analysis is the part of pestle analysis in which the social factors
affecting company are analyzed. Marks and Spencer operate and offer its services to different
parts of the world. Due to different social background and culture of different parts of the
world, the company has to take care of the same while designing fashion and marketing it
(Pedersen, et. al., 2016). To provide effective products, the company has to consider these
social factors. Changing lifestyle impact the market of the company.
Technological Analysis- Technological analysis of the company Marks and Spencer is done
in this. The technology affects the company and its operations. The latest technology helps in
providing the changes to the fashion, productivity, manufacturing, and appearance of the
products. The digital prints and other are the best examples of technology which helps in
printing new designs on clothes (Pedersen, et. al., 2016). Not only the part of designing but
sales has become more effective with the use of different and easy sales channel using
technology. The companies are also launching their applications which are effective in
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ordering and internet shopping for the users. This affects the company and increases sales
(Pedersen, et. al., 2016).
Legal Analysis- Legal analysis impacts on the company’s operations and market
performance. The legal rules and regulations which restrict or bind the company in operating
successfully in the market are the legal factors. In the process of manufacturing, the legal
standards and rules must be considered by the company Marks and Spencer (Lueg, et. al.,
2015). This factor affects the company in attaining profitability and offering products and
services.
Environmental analysis- The environmental analysis includes the waste management. The
company focuses on the waste to be not wasted. The use of the material in making something
useful and attractive is the motive of the company. The environmental analysis of the
company is important (Lueg, et. al., 2015). Marks and Spencer work effectively for the waste
management by using Plan A. This is specially designed for waste management by the
company.
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Relevant changes within the Micro Environment
The microenvironment is elements around the company which are related and interlinked
with the company. These factors affect the operations of the company at a small level and
these factors have an importance of impacting the company.
Customers- The customers are the part of microenvironment which impacts on the company.
The customers affect the company by their demand and supply. To satisfy the customers,
companies have to focus on the customer attraction by producing the effective products and
services (Macchion, et. al., 2017). Marks and Spencer focus on the relevant changes within
Micro Environment which are because of the customer demands and needs.
Suppliers- Suppliers refers to the people who supply products to the different websites and
collect and supply material to the companies. The suppliers play an important role in
impacting the company’s operations, products, and services. The changes according to the
suppliers in the marketing of the company and its operations lead to the changes in price due
to an increased rate of the suppliers.
Marketing intermediaries- Marketing intermediaries are the factors in microenvironment
which affects the companies. Marks and Spencer have various intermediaries which affect the
marketing activities of the company. The prices of products and services are affected by the
use of market intermediaries.
Workers and their union- The works and union and their rallies, protest activities affect the
companies. The workers and their union impact on the company as they stop work during
rallies which generate a huge loss to the company. This loss is to be bear by the company and
affect the company. The Relevant changes in workers and union because of the factors
impact the company.
Competitors- Competitors also impose changes in the company. Due to tough and high
competition, the competitors also make the company to change the products and services
according to the new invented and innovated product (Chen, et. al., 2015). The competition
induces the expectation of the customers and to meet the customer expectation and their
satisfaction level, it is required to consider competition effective.
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Strategies and tactics to be used
The strategies refer to the planning of ideas to meet out the competition in an effective
manner to increase the success of the company. The strategies are focused to attain maximum
satisfaction of customers by planning different activities. The tactics are the small term
planning of the activities which could improve the business and leads a way to success. The
tactics could be used to reduce competition and to meet out the customer’s satisfaction.
The Marks and Spencer have various strategies to meet out the business requirements and
improve the business performance in the different markets of the company (Grant, 2016). To
reduce the competition of the company, the tactics, and strategies which company focus on
are-
Transforming business- Marks and Spencer has a strategy based on the business
transformation. The transforming business is one of the strategies which the company focus
on to meet the innovative business tactics so as to match the level of competition. To beat the
competition, transforming strategy is performed by the company. In this, the innovative Plan
A is developed by the company including risk management, waste management. To
transform the business by initiating the new format of working is an attractive strategy to the
customers.
Creating Value- Value creation is another strategy which Marks and Spencer focus on. The
value creation is based on understanding the customers, competitive advantage. The business
value could be created in an effective manner (Grant, 2016). This is important to create a
brand image of the company. The value creation is done by understanding the customers. The
importance of customers to the company is huge and that is why it is important to understand
the customer to create and enhance the value of the business. The competitive advantage is
also important for the companies to be considered while preparing strategies. Competitive
advantage is related to the advantage over the competition. This could be done by using the
innovative and creative idea to increase the advantage of competition. Marks and Spencer use
effective and creative ideas for competitive advantage.
Strategic priorities- The strategic priorities refer to the prior achievements on which the
company has to focus. The sales growth is the most strategic priority of Marks and Spencer
because it provides availability and choices (Purce, 2014). More stores are the priority of the
company for which the stores should be increased. The buying process must be improved by
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the company on second strategic priority so as to improve margin by increased performance.
The quality of the products of Marks and Spencer are excellent and to maintain the
performance of the company, the quality must be maintained.
Changing organizational structure- The strategy of changing and diversifying the
organizational structure is also the tactic of improving the business performance of the
company. Marks and Spencer focus on changing the strategy of the organizational structure
to improve the business or company’s performance (Purce, 2014). The effective use of the
different organizational structure is the strategy of Marks and Spencer.
Training and development- The other strategy of training and development also helps in
increasing the performance of the company and increase the customer base and market share
of the company. Marks and Spencer focus on providing training and development to its
employees for better working and performance of the company. The effective working and
accepting changes in the organization is the part of the training session.
The policies of rewards and gift voucher- The Company being the brand of fashion and
clothing has a great effect on the customer base. This provides competition to the company.
To attract more customers and improve the market share of the company, various rewards
and gift vouchers are to be considered by the companies (Wang, et. al., 2016). These are the
strategy to increase the sale of the company.
Internet and access to mobile applications- The most effective strategy which Marks and
Spencer could work on and increase the competition is internet use and the access to mobile
applications. The company must follow the steps to introduce the mobile application of the
company in which various strategies of offering reward points, coupons, and gift vouchers
could be added to increase sales of the company.
The above strategies provided are effective and have an objective of increasing sales of the
company. For improving the business performance and increasing its market share,
companies can use effective strategies provided above (Wang, et. al., 2016). These strategies
of Marks and Spencer have helped a lot in matching up with micro and macro factors.
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Recommendations
The recommendations on the above report provided on the big brand of United Kingdom,
Marks and Spencer include various strategies. The recommendations on retailers to meet the
challenges which they face must be that the company must focus on its Plan A.
 Plan A must be promoted and for the effective planning of the company.
 Marks and Spencer must also start the e-learning training sessions. These sessions will help
the other employees of the company at different places to take proper training.
 E- HR must be appointed by the company for monitoring and controlling all the stores of the
company all around the world. This is an effective technique for achieving results properly.
 Talent management must be focused on the company for introducing various new and latest
clothing and fashion product.
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Conclusion
The above report provides the information related to the company and its products and
services. This report is based on the challenges and changes which affect the business
performance. The attainment of the knowledge regarding various changing aspects is also
understood. The conclusion could be drawn that the company is effective and has a very
systematic arrangement to manage the company. With this, the company has to increase its
market. This could do effective use of technology for increasing sales and marketing
activities of the company.
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