Marks & Spencer Analysis

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FINANCIAL ANALYSIS OF MARKS & SPENCER Introduction Global retailer Marks & Spencer is the United Kingdom's premier clothing, food, and financial services retailer. The company's commitment to value, service and quality began in 1884 when Michael Marks, a Russian born Polish refugee formed a partnership with Tom Spencer, a former cashier from the wholesale company IJ Dewhirst, which later on became Marks & Spencer. During this 120-year journey, Marks & Spencer has continuously evolved and is known as one of the biggest retailers in the world today. Marks & Spencer moved in food business in 1931 and initiated financial services business in 1985 with their charge card. The group has around 68,000 employees and serves 15 million…show more content…
In order to stand against its competitors, M&S requires more concentration in non-food sales. M&S's major competitor, Tesco, has managed to reap profits through their price-cutting strategies coupled with increasing non-food sales. Price is the most significant element of market positioning. Tesco is known for its aggressive discounting whereas M&S belongs to a higher priced group of retailers1. M&S emphasizes on quality rather than price-reduction. However, the retail sector in the UK appears to be moving in favour of low pricing approach. Another aspect of the business that M&S in 2006 focused on was the layout of stores and signage since research indicated the perception of customers as being negative in relation to the presentation of the stores. Formulating a successful marketing strategy for an organization needs awareness of the health of the economy, environment, and the industry in which the organization is operating. It is imperative that the following analysis for Marks & Spencer is conducted in order to assess the state of the environment and industry it is operating in. SWOT SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues1. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis measures a business unit, a proposition, or idea. Strengths Every company has certain strengths which act as catalysts for its
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