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Marks and Spencer SWOT & PESTLE Analysis

ID : 52267953| Nov 2019| 15 pages

COMPANY PROFILE -Marks and Spencer

Business Sector :Retail

Operating Geography :United Kingdom, Europe, Global

About Marks and Spencer :

Marks and Spencer Plc. is a major British multinational retailer which is headquartered in London, U.K. It was established in 1884, when Michael Marks, a Polish refugee opened a market stall in Leeds, with the slogan ‘don’t ask the price, it’s a penny’. He later entered into a partnership with Thomas Spencer in 1894 and in 1904; Marks and Spencer opened their first shop in Leeds. Marks and Spencer enjoys a customer base of 32 million and has 1433 stored around the world, with 979 stores in U.K. It has 84,939 employees as of 2017.

Marks and Spencer Revenue :

£10.6bn (2017)

Competitive Analysis of Marks and Spencer

SWOT
PESTLE

The SWOT analysis comprising of factors influencing the internal analysis and external analysis of Marks & Spencer are presented below in a matrix. The SWOT analysis report for Marks & Spencer essays the detailed business case covering strengths, weaknesses, opportunities and threats of this retailer which puts customers at the heart of all business and holds 17% of UK's market share in clothing space. The Company relies on the UK market for a large slice of its revenue which is dwindling due to the Brexit effect and Sterling depreciation. M&S needs to explore newer markets and improve its online presence to consolidate its market position. The report presents an interesting business case and competitive analysis for M&S which illustrates that only an educated business strategy for implementing market segmentation, bolstering online presence and reducing reliance on UK market will help M&S overcome its present challenges and tread on a trajectory of growth and success.

Strengths
Weaknesses
1. Strong offerings in line with latest industry trends
2. Strong e-commerce infrastructure
3. Highly effective corporate social responsibility
4. Strong focus on enhancing customer experience
1. Poor financial performance
2. Too much reliance on UK markets make it vulnerable to market conditions in the local country.
3. Future of M&S in China gone for a toss
4. Frequent product recalls leads to loss in customer confidence
Opportunities
Threats
1. Plans to invest in Indian markets
2. Online presence to bolster its market position
3. Reshaping their Clothing segment
4. Simplifying their operating model
1. Depreciation of Sterling post-Brexit
2. Stiff competition in the UK food sector
3. Changing trends in the clothing space
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Marks and Spencer

 

Strength

1. Strong offerings in line with latest industry trends: The WOW range was launched to promote the concept of healthy foods among the customers. The TV and print campaign of M&S, Adventures in Wonderfood, showcased products from the new ranges in a vibrant and exciting way, and this was supported by a coordinated campaign in their stores and editorial features on M&S.com. A new range of Nourish Bowls was launched, which featured fresh ingredients. They also developed the first ever vegan sandwiches and a range of vegetable wraps. In the Clothing segment, their products are now designed by category, rather than by brand. The £99 M&S Collection wool-mix pea coat was the major focus of M&S’ Autumn/Winter marketing campaign. M&S has the advantage of large local (UK) and global presence with approx. 1433 international stores that promotes popular home grown brands like Autograph, Big&tall, Blue harbour, Collezione, North coast ( men's segment ) and Classic, Indigo collection, Limited collection, Per Una, Portfolio etc. ( women's segment) thus empowering them to develop and market them as per customer's needs.

2. Strong e-commerce infrastructure: M&S is leveraging on its expertise developed in the UK’s fast growing e-commerce market to spread its wings abroad. It is investing heavily on IT, systems and logistics. It is also a strategy to become a multi-channel retailer, reaching customers through mobile devices, stores and the web. 52% of their online orders are placed through tablet and mobile. The British retailer is primarily focused on going about it via partnership model and online business. Sales are expected to be primarily driven by price, service and availability.

3. Highly effective corporate social responsibility: Ten years, after its inception in 2007, Plan A still continues to be the leading sustainability agenda. Plan A is aimed at building a sustainable future by being a business that enables its customers to have a positive impact on well-being, communities and the planet through all that it does. Strong partnerships communities, councils, charities, NGOs and businesses (including our competitors) have been forged over the years. M&S has further updated its goals, scaling up the global socio-economic and environmental development and improving the lives of its employees.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

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Threat

This section is available only in the 'Complete Report' on purchase.

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SWOT & PESTLE.com (2019). Marks and Spencer SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/marks-and-spencer/ [Accessed 12 Dec, 2019].

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Copyrights and Disclaimer

Marks and Spencer SWOT and PESTLE analysis has been conducted by Payal Mazumdar and reviewed by senior analysts from Barakaat Consulting.

Copyright of Marks and Spencer SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Marks and Spencer SWOT & PESTLE Analysis
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