SWOT Analysis of Marks and Spencers

Introduction to Marks and Spencers SWOT Analysis

This SWOT analysis of Marks and Spencers shows the internal business in terms of strengths and weakness of an organisation, opportunities and threats of the external business. SWOT analyses sparks the strategic ray and to figures which help for the strategic planning (Mintzberg 1994). This research shows the SWOT analysis of Marks and Spencer’s to analyse the current situation. Moreover, to implement the strategies to give a tough competition to its competitors by 2030.

Strengths

Marks and Spencer has many strengths but this research focuses mainly on the brand value of the organisation. Additionally, we analyse the wide range of products and different outlets which help to grow the business and the range it delivers.

High recognition of the brand

Marks and Spencer’s is the giant of the UK’s high street is known by everyone in the market for the quality it is providing in the past years. The brand value is high as the customers who go to the high street prefer to go to Marks and Spencer’s as they can finish the whole shopping in a go.

Wide variety of products

Marks and Spencer’s had a variety of products in every store which helps the customers to choose the best, for example if we take vegetables, Marks and Spencer’s began to sell the vegetables and fruits over 40 years ago, they started selling fruits and vegetables such as Canary tomatoes, avocados and English apples.

Moreover, Marks and Spencers relies on the farmers with good relationship from where they are able to increase the variety of products. In the 1970’s M&S would work with small growers of strawberries to drive their crop straight to local stores.

To find the perfect taste of the customers, M&S spend 3+ years on testing and tasting the strawberries. Particularly before launching the Marks and Spencer’s Jubilee Strawberry in summer 2003. At the moment Marks and Spencer’s has more than 1200 suppliers with over 400 different varieties, as well as 500 different types of pre prepared fruits, vegetables and salads (Marks and Spencer 2010). Where the other super markets fail to produce wide variety of products, which indirectly helps Marks and Spencer’s.

Large number of stores and outlets

M&S has about 900 stores worldwide: 600 in the UK and 300+ across 40 countries (M&S, 2010). The numbers clearly say that large number of stores and outlets widen the business. Plus the sales increase due to the wide range of products. If the stores and outlets increase the strength of Marks and Spencer goes high day by day. e to all the commodities of the people for reasonable cost and good quality.

Popular designer brands

Marks and Spencer has wide range of brands which really help the organisation. For example menswear has wide range of brands such as:

• Autograph
• Big&tall;
• Blue harbour;
• Collezione;
• North coast (Marks and Spencer, 2010).

For women brands M&S uses:

• Autograph;
• Classic;
• Indigo collection;
• Limited collection;
• Per Una;
• Portfolio, among many others (Marks and Spencer 2010).

Due to the wide range of brands the business of the organisation goes strength by strength

Weaknesses

Perception of beingnon trendy

Marks and Spencer has a draw back in the market as the organisation is out fashioned and non trendy. Even though Marks and Spencer has wide range of products and different brands, M&S faces a perception issue. In general, people wrongly assumption that menswear and womenswear best suit older customers, not teenagers and youths. These wrong assumptions are making the business low. The management should develop new strategies to focus on the sales for the young people.

Even the management failed in the past years to attract the new customers, the people who had trust on Marks and Spencer from the past years still shop but the new generations are not at all interested. Some people say that Marks and Spencer is a shop for sixties and seventies but not for twenties and thirties. To overcome this management of Marks and Spencer’s need to come with a new strategy to attract all the age limits not losing its reputation with the present followers and they even need to develop a strategy to overcome from the bad publicity and to give great competition to its competitors such as Primark, Next, River island, oasis, Oxygen, New look, H&M etc.

Manual working increases the costs

Marks and Spencer’s had a backdrop of following old techniques rather than following the new techniques which increase the different aspects such as money, time etc. But in general the big organisations are keeping a focus on the new technologies for the efficiency of the work done. Currently,these organisations are preferring for both mechanised and automated material handling alternatives for various types of logistic operations.

Most of these technologies help to increase the productivity in less span of time but the main drawback of Marks and Spencer is not utilising the technology for effective use the manual work increases the cost and reduces the work efficiency it is recommended to Marks and Spencer to use the new techniques instead of increasing the manual hours and manual costs for trading. It’s just matter of time and planning to overcome this obstacle. There is no doubt that manual working increases cost.

Opportunities

Increasing global presence

Marks and Spencer was stabilised in UK and even it started number of stores all over the world in the 1940s.the company started trading most of its services using St. Michael brands. Using St. Michael brand the company started exported about $1,146,000 worth of merchandise. Marks and Spencer’s early internalisation was mostly due to domestic factors. After some dramatic changes it is clear that the expansion of the market have to come from the overseas. Labour party members were suggesting nationalising for the leading domestic retailers (De Nardicole 1998).

Internationalisation was therefore seen as a tool that diverts everything from the market on the local basis. Due to the export business only few international franchising relationships are made. Importers of the St. Michael brand, who were familiar with the success of the brand in their countries started investing in the business of Marks and Spencer. In the early 90s St Michael franchises were operating a good business in 14 different economies. By 1996 Marks and Spencer’s has 645 outlets worldwide, among these 645 outlets 58% of the shares were in UK, Europe and Canada.(De Nardi-cole 1998).

Today

The picture has changed since then at the moment Marks and Spencer has about 70,000 employees in 900 stores all over the world with above 300 stores worldwide and 600 stores in the UK. Marks and Spencer has above 21 million visiting customers per week (Marks and Spencer, 2010). In general Retailers take relatively less risk to enter the global market, Instead they start exporting and franchising their products globally. Marks and Spencer did the same thing back in 1950s but due to the significant raise in the demand by the consumer’s marks and Spencer can go ahead by increasing globally as it has significant purchasing power. Marks and Spencer can utilise various types of modes of entry around the world.

Beyond the UK

Marks and Spencer can open its own stores around the world or through expanding the business through franchise agreements. To this end, Marks and Spencer has stores in Canada, France, Belgium, Germany, Hong-Kong, Ireland, Spain and Netherlands. M&S also maintain the Franchise agreement with developing countries such as Bermuda, Canary Islands, The Bahamas, The Czech republic and Israel (De Naridi cole, 1998) the company started franchising in the countries who have smaller per capita income. Marks and Spencer started growing in south Asia from 2000.

Marks and Spencer had a franchise deal with a company called planet sport. According to the market basis it started the clothing and bath items only. But franchise owner VP Sharma said to the BBC that most of the goods in India are imported from Europe so The brand name of Marks and Spencer would help the business to grow rapidly. It is a good idea to increase the Franchise as Marks and Spencer has a good reputation all over the world and it origins from the land of costly brands.

By taking Planet Sport as an example Marks and Spencer’s has the chance of growing globally as it is recognised globally. Management need to take necessary steps to increase globally keeping in mind all the factors. The chance of growing increases only when Marks and Spencer’s is activated globally. A specific strategy need to be implemented by the management for the raise in the branches all over the world which will be a good sign for the organisation.

Market Segmentation

Market Segmentation is the process of splitting customers in a market into different groups within which customers share similar level of interests in the same or comparable set of needs satisfied by a distinct marketing proposition. Marks and Spencer has the opportunity to increase the technique of market segmentation by increasing its branches all over the places which will increase the business, in general marks and Spencer mainly have the mega stores all over the places but they dint concentrate on splitting the customers according to the area of interest.

Sainsbury on other hand divided the customers by opening new stores called Sainsbury Local’s which increased the business. In the same way Marks and Spencer has the opportunity by dividing the customers by establishing small shops which will reduce the maintenance cost and increase the profits as the manual power will gradually decrease when compared to mega stores and even the investment on the publicity will be less, keeping in mind all the features it has the opportunity of spreading the business by market segmentation.

Threats

Increased competition in all areas of business: Marks and Spencer has the threat of losing its scope in the business due to the competition. Essentially, the increased competition in the retailer sector is a big worry. Other retailers like Asda, Sainsbury and Tesco are expanding themselves (aka Sainsbury’s local and Tesco Express).

By contrast, Marks and Spencer is still relaying on the mega stores. In turn, if this continues there is a risk of losing its reputation among the customers. Therefore, it iswise to increase the stores where they can increase the profits so the Management need to come with a new scenario to develop the risk management by increasing the stores. Marks and Spencer need to come with a strategy to overcome all the obstacles.

Summary of Marks and Spencers SWOT Analysis

Marks and Spencers SWOT analysis highlights the company’s key strengths, weaknesses, opportunities, and threats. M&S benefits from strong brand recognition and a wide product range, including fresh produce and designer brands. Its extensive network of over 900 stores, with 600 in the UK and more than 300 worldwide, boosts accessibility and sales. The company’s relationships with suppliers and focus on product quality further strengthen its position.

However, the Marks and Spencers SWOT reveals some weaknesses. M&S is often seen as outdated and less appealing to younger shoppers. This perception limits its ability to attract new customers, especially in the competitive fashion market. Additionally, reliance on manual processes increases operational costs and reduces efficiency compared to rivals who embrace automation.

Opportunities identified in the SWOT analysis of M&S include expanding its global presence through new stores and franchises. The company can also adopt market segmentation strategies, such as opening smaller local shops, to better target different customer groups and reduce costs. These moves could help M&S compete more effectively with rivals like Tesco and Sainsbury’s, who have already diversified their store formats.

The main threats to Marks and Spencers come from intense competition in the retail sector. Rivals are expanding rapidly and innovating with store formats, which puts pressure on M&S to adapt. If M&S fails to modernise and broaden its appeal, it risks losing market share. Overall, this Marks and Spencers SWOT analysis shows the need for strategic changes to secure future growth.

References for SWOT Analysis of Marks and Spencers

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