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Swot Analysis for Marks and Spencer

Autor:   •  April 11, 2011  •  Case Study  •  364 Words (2 Pages)  •  1,500 Views

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Strength

A market leader with unprecedented scale gives a competitive advantage

Marks and Spencer is the one of the largest retailer in the world. The company has been expanding its clout; Marks and Spencer UK is an integral part of consumers' budgets. The company dominates the UK retail landscape and is growing internationally at a fast pace. Marks and Spencer, being a market leader, is able to replicate its best practices constantly on an unmatched scale both in the UK and across the world. Marks and Spencer's large scale relative to most vendors leads to favorable terms on everything from the products on its shelves to store leases and distribution agreements. These competitive advantages generate positive economic returns and market share gains. Also, Marks and Spencer offers a large variety of products. Its dominant position and range of products allows the company to quickly shift the product mix to meet demand and benefit from increased sales.

Low cost leadership enabling Marks and Spencer to offer products at low price points

Marks and Spencer is a price leader and its low cost operations are enabling the company to maintain the position. The company receives favorable pricing from and systematic integration with most of its suppliers which is a large part of Marks and Spencer's crucial low-cost advantage. As a low-cost general retailer, Marks and Spencer has built a reputation with consumers as a one-stop shop for good deals on a huge spectrum of merchandize. The company has been aggressively trying to further reduce stock-keeping units and lower prices.

Internationalization strategy—a strong foundation for growth as the US market matures

Marks and Spencer has been increasingly focusing on establishing its presence strongly in the international arena. As the markets

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