Marks Spencer SWOT and PESTLE Analysis

mark Spencer SWOT and PESTLE AnalysisThe capaciousest strength of Marks Spencer is its patsy image which influences the customers choice. For quality assurance the consumer lavatory confidently assert on St Michaels Brand Label (Benady D 2005). It has diverse products Clothing, food, furniture, financial products, etcetera This is an advantage to the familiarity as the customers who believe in the quality of iodine item ordain be d newfangledn to another item hoping for the similar quality. Their human resources ar very trade good which is very important for racetrack any business. Their presence in the international mart is a good advertisement for them.WEAKNESS (COMPETENCE)It is clear from research findings that the order was successful coin bank late nineties and then the decline has begun. This decline is beca routine of inexperienced batch at the helm of affairs. The company was blind to the changes in the securities industry and proceed their traditional thinking. They didnt correct to the changes as they occurred. This is evident from thier lack of appeal of the St Micheal brand to the under 30s age bracket(Tony Grundy 2005). According to a channel 4 platform the management was focused more on the day to day trading operations rather than long term strategies. The same programme revealed that the company was secure to the generalised view of the foodstuff instead of thinking about the diametrical market segments.MS was very late in introducing the dedication rag to its customers. When all the other retailers were having those cards the customers of MS didnt not boast them which is a weakness of the company. Most of the merchandise of MS was womens wear. Most of the customers must have been women. There should have been few women in the management who could have silent the taste of women. There were internal conflicts between the management someonenel which has touched the company.Financial Times, 19 May 1999 stated, MS h as behaved more equal a wholesale buyer of products rather than thinking about the sort of person that was buying the item and what else they could sell to that customer.OPPORTUNITIESNew ProductsMS has a bolt for diversified products. Introduction of innovations in this regard shag help the company to come up some more new products that can progress to increased taste in the customers for the company.Re focus on international marketsIn the early 2000s we find that the company started shaveting down the European expansion programme. We find that the trading conditions have become tough for the company to compete well at the international level. If the company can freshen up its marketing mix and rectify their shortcomings in regard with their proper use of 7Ps, the opportunities in the international market are immensely huge.AlliancesThere is heavy(a) luck for better alliances for the alert companies with proven history of past success. MS should grab this opportunity to dev elop thoughtful and fruitful alliances.Assets and established structures universe in the business for a considerably long period the company has assets and established structures which can be used for the expansion of the business. Retrospection into the subsisting flaws of the company can help rejuvenate its business by underdeveloped overseas supply chain.THREATSNew existing competitionFor every existing business there is always the threat of the new competition that is be uniform to crop up. This is evident from the history of the company the MS lost the market sell to haven which offered more fashionable with similar prices. Others like the usher out stores and supermarkets posed a great threat the company. BHS, Top Shop and ASDA can be potential threats in this regard.Volatility in Price of raw materialPrice of raw material is always volatile. This volatility can be a big threat to the company because the budget plans exit have be to changed according to the changing pr ices of the raw material scotch recessionDuring the time of this case study recession was slowly peeking up with few incidences like twin loom attack which affected the worldwide economy. People will become more economical during these times where they cut down their expenses luxuries and comforts and concentrate more on basic needs. innate and Corporate AppraisalPorters Five ForcesThreats from Potential entrantsPotential entrants of that time hold BHS, Top Shop, ASDA, TESCO, Morrison etc. These have the potential to bow out over the market from MS.Suppliers bargaining powerThe suppliers of the raw material have developed a bargaining power out-of-pocket to the entry of the new companies into the market. If they get a better bargaining power of supplying things from other companies then they will obviously have more choices to make than sticking on to MS. competitive RivalryThere is a stiff competitive rivalry seen in the market for MS. Labels like Gap, Next, Primark, New looks , Acadia Group etc, are the leading rivals. Oasis has offered different fashions to the customers with the similar prices. Others like the discount stores and supermarkets posed a great threat the company. It has brought lot of loss to the market share of the company. If MS doesnt take precautions to check this condition, competitors will take away the complete market share from MS.Buyers bargaining powerIn a growing market and with the egress of new companies the bargaining power of the buyers has always risen up. In the market where once there is only one option now there are many options available to them. This has increased the bargaining power of the buyers to a large extent. With the economy playing heavily on the minds of people loyalty is the final thing that they would think of when someone else like Oasis and the like are ready to give a better offer.Threats from substitutesThere is a big threat from the substitutes. This threat posed mainly by retailers like John Lewis, Sainsbury, Rackhams, etc.External Environment PESTLE AnalysisThe revenue stamp analysis helps us to understand the external environment of Marks and Spencer better.political The door for British Companies was opened to invest in Europe due to the Free Trade Agreements and European Integration. These political factors helped MS to stretch the wing of its expansion globally. In response to the global dictate of off propping up MS has launched a new franchise operation in Poland and Australia (Olins,1997)stinting Being in the Retail sector MS is volatile in regard with any changes made in the interest rates. The twin tower collapse of September 11 has affected the economy of the world so much. Prices have fallen low. This has changed the figures of profit completely. Fortunately, things slowly changed for better.SOCIAL The taste of a consumer keeps changing always. These changes are both an opportunity and a threat to the industry. Its an opportunity because of the new market of the consumers. It is however a threat if the company doesnt adapt itself to the change which is exactly what has happened with MS. It went on with the traditional thinking not large adherence to the changes.TECHNICAL The Marks Spencer Charge card was launched nationally in 1985. Online shopping was launched on the Marks Spencer website in 1999. The introduction of such technology helped the business to work fast and efficiently.LEGAL There were few level-headed problems that the company had to face especially in the international operations. But they are short lived.ENVIRONMENTAL The company was involved in using environmental friendly resources in the production of cotton and wool. The threats are in wrong of legal consequences for livestocks in terms of health and safety.