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Both external and internal issues influence how the company decides to operate. The external issues will, of course remain the same for all the players in the market. With regard to Marks & Spencer, we can categorise them as follows: ExternalInternal
-Fast changing market and tough trading conditions
-Poor management
failure to recognize and react to changing market trends
Consumers change of taste
Decentralised marketing function: inconsistent brand image
War in Iraq
slower economy
-The versus the Euro imports/exports
-Increased competition locally and from foreign companies
Marks & Spencer SWOT Analysis.
What follows is M&S SWOT Analysis. It highlights the companys strong and weak points and areas they can improve. Strengths
¢Reputation/Brand
¢Market position
¢Provides quality products
¢Allows for online shoppingWeaknesses
¢Slow to change
¢Lack of newness
¢Clothing: does not really reflect younger womens taste Opportunities
¢Keep renewing their womenswear range
¢Better define target age group (currently, it is not clear: older or younger women?)
¢Stores refurbishment: provide a more upbeat look
¢Use of good CRM systems that can help them keep track of customers demands.Threats
¢Loss of market share as a result of intense competition competition e.g. in the food sector, is advancing with similar products.
Marks & Spencer have recognised that they havent responded quickly enough to consumers changing needs and preferences. For instance, their clothing range especially womenswear has suffered from lack of novelty. It did not represent the modern womans taste for a more casual look. Similarly, in the food section, although they have retained their market position, sales were less significant this means that competitors are quickly catching up (Interim results presentation 2004). Currently, Marks & Spencer are planning to inject the business with new, fresh ideas and products, especially in their clothing segment both womens and mens range. Some of the actions being taken, as outlined in their 2004 Annual Report (Chairmans Statement), are as follows:
¢Improving the management team.
¢Improving their supply chain.
¢Divestment of less profitable businesses.
¢Stores refurbishment.
¢Plan to make their special foods more available opening Simply Food stores.
¢Re-branding of their financial offer introduced the &more credit and loyalty card.
¢Centralisation of their marketing function.
-Fast changing market and tough trading conditions
-Poor management
failure to recognize and react to changing market trends
Consumers change of taste
Decentralised marketing function: inconsistent brand image
War in Iraq
slower economy
-The versus the Euro imports/exports
-Increased competition locally and from foreign companies
Marks & Spencer SWOT Analysis.
What follows is M&S SWOT Analysis. It highlights the companys strong and weak points and areas they can improve. Strengths
¢Reputation/Brand
¢Market position
¢Provides quality products
¢Allows for online shoppingWeaknesses
¢Slow to change
¢Lack of newness
¢Clothing: does not really reflect younger womens taste Opportunities
¢Keep renewing their womenswear range
¢Better define target age group (currently, it is not clear: older or younger women?)
¢Stores refurbishment: provide a more upbeat look
¢Use of good CRM systems that can help them keep track of customers demands.Threats
¢Loss of market share as a result of intense competition competition e.g. in the food sector, is advancing with similar products.
Marks & Spencer have recognised that they havent responded quickly enough to consumers changing needs and preferences. For instance, their clothing range especially womenswear has suffered from lack of novelty. It did not represent the modern womans taste for a more casual look. Similarly, in the food section, although they have retained their market position, sales were less significant this means that competitors are quickly catching up (Interim results presentation 2004). Currently, Marks & Spencer are planning to inject the business with new, fresh ideas and products, especially in their clothing segment both womens and mens range. Some of the actions being taken, as outlined in their 2004 Annual Report (Chairmans Statement), are as follows:
¢Improving the management team.
¢Improving their supply chain.
¢Divestment of less profitable businesses.
¢Stores refurbishment.
¢Plan to make their special foods more available opening Simply Food stores.
¢Re-branding of their financial offer introduced the &more credit and loyalty card.
¢Centralisation of their marketing function.