preview

An Analysis of Marks and Spencer

Better Essays

An Analysis of Marks and Spencer

INTRODUCTION TO THE FIRM AND ITS INDUSTRY

Marks and Spencer is one of the largest retailers in the United Kingdom, and is also known as a major retailer selling diverse product ranges under their own exclusive brand in more than thirty countries. Customer confidence in the Marks and Spencer brand remains second to none. According to recent research undertaken by the Company, it shows that, in clothing, Mark and Spencer has a clear lead over all its major competitors in the key areas of fit, quality, trust, breadth of range and customer service.

In November of 2000, Marks and Spencer will launch a trial of three new lingerie-only outlets in Paris, Hamburg and Dusseldorf. According to industry …show more content…

The most unusual part of this downswing of Marks & Spencer is that the company has added 50,000 new investors to its share register over the past year. Normally a company as crisis-torn as this one cannot attract such a voluminous new following of investors, and rarely can the new fan club have been so disappointed by what it found. The shares have been in more or less continual decline throughout this period. Many analysts are wondering why? (Anonymous 21).

One explanation is that Marks & Spencer has appeared on numerous share tip lists as an obvious recovery stock. Many important newspapers included the company in its New Year share tips, and the brokers have been unrelenting in rating the stock a buy. But investors don 't have to read the newspapers to think in the same way as them. Marks & Spencer is still a very good brand which in the past has achieved outstanding retail success. The logic behind buying the shares, then, is the belief that they must at some time bounce back (Anonymous 21).

This is a bad enough strategy to apply to stock market investment generally, but it is a particularly bad when applied to a specific stock such as in this case. The world is a fast changing place and just because a company was once at the top of its competition doesn 't mean it will ever be that way again. Marks & Spencer shares have repeatedly over the last year attempted to stage a recovery,

Get Access