Marks and Spencer SWOT & PESTLE Analysis

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.

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Weakness

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Opportunity

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Threat

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Political

1. Reduction in sourcing costs due to the fair trade policy: M&S is the first major retailer to go down the Fair trade path, on both the segments, namely, Clothing and Food. The Fair Trade policy, implemented by M&S has led to substantial reduction in sourcing costs, benefiting M&S. The policy includes reduction of fat and salt in M&S foods, recycled packaging and animal welfare protection.

2. Brexit to have significant implications for businesses: The Brexit has triggered a wave of uncertainty for businesses operating in the UK. Until the final exit terms are decided uncertainty will prevail. The exit will majorly change the political landscape of UK and consequently affect M&S’s operation in UK and Europe. Depreciation of Sterling has sharply decreased revenue besides impacting consumer spending.

3. Changing government and taxation policy: As the retail sector is facing huge losses, local governments are having specific operating and taxation laws for retailers. For instance, In India, demonetization and GST (Goods and Service tax) implementation, threw sales in a toss for a few months before returning to normalcy.

Economic

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Social

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Technological

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Legal

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Environmental

1. Sourcing of fresh milk from RSPCA assured dairy farms: M&S is the first major retailer in UK to source its fresh milk from RSPCA Assured dairy farms. The RSPCA Assured logo will now be seen on every fresh M&S milk packaging and it ensures that milk sold in M&S is procured from farms with the highest animal welfare standards. The standards ensure compliance in areas of cow welfare such as calf rearing, accommodation, health planning, feed and grazing.

2. Environmental friendly and sustainable products: Environmental friendly products are quite popular with the customer in the current age where climate change and environmental sustainability is important. In line with the trends M&S has launched a new menswear range which uses less energy, chemicals and water in the manufacturing process. Further the company aims to source all its cotton more sustainably by 2019.