Situation analysis includes competitor analysis, market analysis, environment analysis, customer analysis and internal analysis. This post by the team of assignmenthelpexperts.com will discuss and analysis environmental factors of Marks and Spencer. Marks and Spencer is one of the UK’s leading retailer companies. Over 21 million people are visiting stores each week. M&S sell clothing, food & home ware. It also includes SWOT analysis and key issues of M&S.Situation Analysis
Competitor Analysis: Competitor analysis is the process of collecting information about the competitive companies in specific areas. Marks and Spencer is the UK’s leading clothing retailer. But it has competition in other market segments (M&S, 2011). Tesco and Sainsbury are two competitors. Sainsbury has a big food chain and compete M&S in foods & beverage. Also it has many product & services like toys & games, entertainment, sport & leisure (Sainsbury, n. d.). On the other hand, Tesco is a well known brand of services and compete M&S to give best services on a good standard across the world (Tesco, 2011).
Market Analysis: Market analysis of M&S includes some points, its sale increases with 3.9% in clothing & home and 4.1% in food. It includes features like consumer can shop online or over the phone. M&S has 361 wholly-owned, partly-owned and franchised stores in 42 territories in Europe, Middle East and India. In 2010, it establishes its ‘Consumer Barometer’. Its Customer Insight Unit (CUI) conducts a monthly online survey of people (M&S, 2011).
Environmental Analysis: It includes PEST analysis.
Political & Legal: It is important for M&S to follow the government policies. When government introduces climate change levy and Green tax, M&S follow that law and improved its policies. It also produces non-GM (genetically modified) foods.
Economic: After Germany and France, UK is the largest economy in Europe. It is the most important financial center and trading power over two decades (CIA, 2011). Its GDP grew by 0.5%during the last quarter of 2011 (Office for national Statistic, 2011). High GDP helps in making business profitable and it generates income and employment.
Social: In present scenario everyone wants to look good and modern so M&S gives colorful and latest cloths for women. M&S has allowed its customers to pay by credit cards from 18 April 2000 to contend with its competitors who have accepted credit cards for a long time (BBC News, 2000).
Technological: M&S introduce new technologies to increase customers and market growth. It facilitate customer to shop online or over the phone (M&S, 2011).
Customer Analysis: M&S strengthen its customer services by retention campaigns, like delivering best quality, offer discount on larger order. It also facilitate customer to shop in store, online or via mobile. It segmented the clothing line, to introduce school uniform for kids (M&S, 2011).
Internal Analysis: M&S generates total profit of £m598.6 at the end of 52 weeks of 2011. They introduce Plan A in January 2007, setting out 100 commitments to achieve in 5 year. They have now extended Plan A to 180 commitments to achieve by 2015 with the ultimate goal of becoming the world’s most sustainable major retailer. In 2011 they increased the number of people on SMS database by 90% and going to sending over 4 million emails a week to customer. (M&S, 2011).
I hope you will know about situation analysis of Marks and Spencer throw this post, if you need any assignment help or homework help, please do send us an email to info@assignmenthelpexperts.comReferences
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Marks and Spencer Reliance India to open 15-stores in 2 years. (2010) The Economic Times, 22nd July, 2010. [Online]. Available at: http://articles.economictimes.indiatimes.com/2010-07-22/news/27598260_1_open-15-stores-spencer-reliance-india-joint-venture [Accessed: 8 July, 2011].
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Vijayraghavan, K. (2009) India is very important part of current and future for Marks & Spencer. The Economic Times, 18th February, 2010. [Online]. Available at: http://articles.economictimes.indiatimes.com/2010-02-18/news/27582780_1_marks-spencer-india-and-china-uk [Accessed: 8 July, 2011].