swot analysis for marks and spencer

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3.1 Strengths 3.1.1 High Quality High quality is the major strength that makes M&S successful. Customers always find high quality goods such as fresh fruits, vegetables, and other superior goods in M&S’s food hall (Ciao, 2002). With many people turnning to eat vegetarian meals, M&S grasps the consumers’ need. M&S has high quality of products that are the food and other products, such as baby products and women’s underwear. 3.1.2 Customer Services M&S has high reputation for focusing on customer service. (Christie, 2002). This is one of the most important methods to make a good relationship between customers and M&S. For example, when women want to buy underwears for themselves, the shop assistants will help them to measure sizes and give them good suggestions. 3.1.3 Shopping Environement M&S tries to make customers feel more convenient and comfortable. It makes stores brighter, and uses modern designs (Rungfapaisarn, 2001). All goods in the shop can be seen immediately. Furthermore, customers do not worry about being drowned in many shelves and avoiding multitudinous people. 3.1.4 Manager Training One of M&S’s strengths is its strict and excellent manager training system (Retail Technology, 1999). Every manager of M&S must be familiar with duty of every post. In fact, managers of M&S are arranged practice of every post. It helps them to improve both work experiences and management skills. 3.2 Weakness 3.2.1 Clothing Lack Segmentation The clothing market of M&S has many segments. In fact, the merchanclise, especially ladies outerwear, is outmoded design and cut. In addition, affluent younger consumers prefer purchasing brand-labels, such as Gap, Next and Topshop (Jobber, 2001: 149). 3.2.2 Stock Control “The non-performance of the home delivery/shopping service even sometimes involves wedding lists. Customers were told that items were out of stock†(Jobber, 2001: 149). Customers complain the defect of e-shooping and delivery services. To some extent, M&S suffers from the unbalance between the stock and Information Technology System. 3.2.3 Waste Store Spaces Another problem is that M&S has many store spaces. In fact, it has added 75 percent of square footage since the early Eighties, but its market share in clothing has not increased (Stewart, 2000). M&S needs to find some new products to stuff its extra spaces. 3.3 Opportunities 3.3.1 Internet Technology Internet technology has developed fast, it offers an opportunity to increase the demand for the online products (Zakon, 1999). In terms of this circumstance, buying products online became a new trend. Customers are getting used to accept the model and adapt it to their daily lives, and the demand for this kind of products would be increased in the future. 3.3.2 Healthy Eating

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Page 1: SWOT Analysis for Marks and Spencer

3.1 Strengths 3.1.1 High Quality High quality is the major strength that makes M&S successful. Customers always find high quality goods such as fresh fruits, vegetables, and other superior goods in M&S’s food hall (Ciao, 2002). With many people turnning to eat vegetarian meals, M&S grasps the consumers’ need. M&S has high quality of products that are the food and other products, such as baby products and women’s underwear. 3.1.2 Customer Services M&S has high reputation for focusing on customer service. (Christie, 2002). This is one of the most important methods to make a good relationship between customers and M&S. For example, when women want to buy underwears for themselves, the shop assistants will help them to measure sizes and give them good suggestions. 3.1.3 Shopping Environement M&S tries to make customers feel more convenient and comfortable. It makes stores brighter, and uses modern designs (Rungfapaisarn, 2001). All goods in the shop can be seen immediately. Furthermore, customers do not worry about being drowned in many shelves and avoiding multitudinous people. 3.1.4 Manager Training One of M&S’s strengths is its strict and excellent manager training system (Retail Technology, 1999). Every manager of M&S must be familiar with duty of every post. In fact, managers of M&S are arranged practice of every post. It helps them to improve both work experiences and management skills. 3.2 Weakness 3.2.1 Clothing Lack Segmentation The clothing market of M&S has many segments. In fact, the merchanclise, especially ladies outerwear, is outmoded design and cut. In addition, affluent younger consumers prefer purchasing brand-labels, such as Gap, Next and Topshop (Jobber, 2001: 149). 3.2.2 Stock Control “The non-performance of the home delivery/shopping service even sometimes involves wedding lists. Customers were told that items were out of stock†(Jobber, 2001:� 149). Customers complain the defect of e-shooping and delivery services. To some extent, M&S suffers from the unbalance between the stock and Information Technology System. 3.2.3 Waste Store Spaces Another problem is that M&S has many store spaces. In fact, it has added 75 percent of square footage since the early Eighties, but its market share in clothing has not increased (Stewart, 2000). M&S needs to find some new products to stuff its extra spaces. 3.3 Opportunities 3.3.1 Internet Technology Internet technology has developed fast, it offers an opportunity to increase the demand for the online products (Zakon, 1999). In terms of this circumstance, buying products online became a new trend. Customers are getting used to accept the model and adapt it to their daily lives, and the demand for this kind of products would be increased in the future. 3.3.2 Healthy Eating Healthy eating offers an opportunity that the demand of specific food will be increased (Leyshon, 2002). People pay attention to the life quality, they request companies to offer varied products to satisfy their needs. For example, in the food market, M&S does good segmentation in providing the vegetarian, low fat or organic food. This is the advantage that the competitors have not aware of it. 3.3.3 Marketing Extending The Company owned stores in the Republic of Ireland and Hong Kong and has 131 franchise stores in 28 countries operating through a network of successful partnerships (Marks & Spencer, 2002d). In the future, the company will expand its business beyond the existing area.

3.4 Threats Although M&S has its own strengths, opportunities and weaknesses, it still occurs some threats from itself and other competitors. 3.4.1 Strong Competitors

Page 2: SWOT Analysis for Marks and Spencer

Strong competitors are the most threat to M&S. For example, in the food market, there are four main supermarkets, such as Tesco, Asda, Safeway and Sainsbury (Ocr, 2002). They provide not only high quality but also value-added products to build customers’ loyalty. In the clothing market, Gap, Next, Topshop and other fashionable brands may compete with M&S (M&S shuts, 2001).

3.4.2 The Change of Social Environment Except other competitors, M&S will be influenced by social environment. Since the social environment changes at any time, the customers’ tastes are also changed. For example, people move to other countries, and their culture will affect the local people’s lifestyles, such as eating, and dressing. M&S can adjust its products to satisfy different needs. 3.4.3 Chemical Pollution Environment pollution is a threat for M&S. An environmental systems manager of M&S claimed, “ Every one of the 30,000 product line that M&S sells is dependent on chemicals†(Friend of the Earth, 2002). Governments are taking measures to �protect natural environment and reduce pollution. This potential risk will affect its development of M&S in the future. 4 CONCLUSION In conclution, M&S is a successful company. In macro-environment, M&S obeys the government’s policies and protects the natural environment. Moreover, M&S is influenced by the factors of ecnomic, social, and technological to make its business strategies. On the other hand, in micro-environment, the M&S has created a good and long-term relationship with the suppliers and customers. From the SWOT analysis, the most important factor for M&S is to satisfy customers’ needs. The main advatage is its high qualiy that uses to build customers’ loyaty. On the other hand, the main disadvatage is the lack of clothing market segmentation that causes M&S to lose its brand awareness among the existing customers. The significant strategies of M&S are creating potential customers and maintaining the existing customers. To sum up, the analysis of M&S has found that its business structures follow the trend of society, keep the position in the market, and increase its potential market share. 5 RECOMMENDATION M&S is a successful multinational corporation. Depending on its high quality, good service, comfortable shopping environment and convenient access, M&S has won a large amount of loyal consumers. However, due to a wide range product, M&S should revise its marketing segmentation, especially in clothing market. Women do not like M&S’s clothing from design to color and young consumers prefer fashionable design. Facing different target markets, M&S should change its design .For women, change clothing’s style and cut, adding bright color. For young consumers, improve design to show M&S’s own personality. This segmentation may satisfy people’s different needs. In addition, M&S should enhance stock management. M&S has advanced information technology system, this system can combine with its stock management effectively. It will help M&S find problems immediately and supply products timely. Except changing its own business strategies, M&S should consider the global economic environment. The recent economic recession causes M&S’s sales delining. M&S should focus its target group on mid-age and mid-class. Their income can afford the high price of M&S. Above all, M&S should develop its strength forces, overcome its weakness forces as well as turn these two factors into opportunities, which will help M&S maintain its market position.