Strategic Management

A Case Study on a Famous Fashion Retail Outlet

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Strategic management is as process of planning, organising, evaluating and monitoring the business strategy for attainment of the objective. In the absence of strategy, business enterprise can unable to compete with rivals in the market. In the present time, there are huge competition in the fashion industry thus, organisation which deals in fashion have to formulate such effective and competitive strategy by which it can survive in the market in a smooth manner (Adar and,2016). The following report provides the depth knowledge and understanding about the business environment and current trend and development about the fashion industry. In this report, a systematic analysis of business environment and its major competitors and their competitive position has been also addressed with respect of Marks and Spencer. It is one of the famous fashion retail outlet which deals with fashionable clothing and accessories.

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Main Body

Business environment is consisted with mixture of internal and external components and these factors largely affect the organisation and its business activities and functions. In the context of external environment various force may affect the business firm that is political, economical, social, cultural, legal and technological. While business unit operates its business in the market then it has to consider these component and organise activities accordingly. Stakeholders are another major component in the business environment which largely affects to business (Amran, Ooi and Devi, 2015). In this includes suppliers, customers, government, employees, investors etc. In the context of Marks and Spencer, it is one of the famous retail outlet which have large numbers of competitors in the market. While it operates its business in the market, it has to consider following components of business environment-


This is major component of business environment of Marks and Spencer as it is fashion outlet so it has to pay the tax according to the government declaration. In addition to this it has to follow the rules, regulation, code of conduct etc. These rules and regulation must be applied on the business activities and function of the Marks and Spencer like marketing, advertising, sales, promotion etc.

Social and cultural

Social factor related to the customer and their choice, taste, preferences, life style, education, income level, culture, beliefs, region etc. Marks and Spencer is a fashion outlet which deals with fashion accessories and clothing so it must consider this component related to customer, taste, preferences, cultural and social value. By this doing, it can able to meet the expectation of the customer and earn the profitability (Anton, 2015).


Economical component is another major element in the business environment of Marks and Spencer under which it affected by the interest rate, pricing policies, inflation, recession etc. While it sets the prices about the product and services then it has to consider the economical condition of the country.

Business Environment

Illustration 1: Business Environment
Source: Bahadir,  Bharadwaj and Srivastava, 2015.  


Due to continuous changing technology like online shopping, e-commerce etc can largely affect the process and service of Marks and Spencer. Company have to adopt the new technological and made changes in the operation according to the trend of technology.


This component of business environment includes natural resources like  weather, climate, raw material, air, water etc. As per the research it has been founded that cited firm is considered on the renewable and environment friendly product and services so as it can maintain its market share (Bull and, 2016).


UK government has been made some legislation and law for the business, consumer and employees which company have to follow at the time of operation. For instance, consumer goods act, employment right act, business registration  act etc.

As per the above discussion it has been ascertained that there are various kinds of factors of external business environment of the Marks and Spencer which largely affect the cited venture. In order to identify the internal competency, its competitors and strategic position in the UK market, Porter Five force can apply in the cited venture. With assistance of Porter Five force model, internal efficiency and competitive position of Marks and Spencer can analysed-

Bargaining power of Suppliers

For the Marks and Spencer, bargaining power of the supplier is low because cited firm is huge listed company with a massive turnover. It brands name is sufficient to distribute the product and services in the market (Gonzalez-Padron, Hult and Ferrell, 2016). Therefore, Cited venture is not as dependent on the suppliers  as other stores.

Bargaining power of Buyers

In the Marks and Spencer, bargaining power of buyer is high because buyer have various option and alternative for the similar product and services in the market. In addition to this, the concentration of buyers is high and they can dedicate their rules and taste.

Threat of Entrants

In the Marks and Spencer organisation, threat of new entrants is low because as it is one of the big brand in the UK market so new business organisation have to invest large capital for operate the business similar as Marks and Spencer.

Threats of Substitute

The Threat of substitute is high of the Marks and Spencer. As it is a consumer good retailer and it has large numbers of competitors in the market so consumer can buy the similar product with lower prices.

Competitive Rivalry

As Marks and Spencer is the world famous retail outlet in the UK which deals with customer goods and services. It has large numbers of competitors like Tesco, Sainsbury, Aldi etc. Thus it can be said that Marks and Spencer have large number of competitors.

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SWOT Analysis of Marks and Spencer


Marks and Spencer have high and excellent quality of products and services. It stores are situated in the high streets in the UK so customer can easily reach there. It has very healthy relationship with suppliers and large market share in the retail stores.


The major weakness of the Marks and Spencer is that it have old and classical fashion image and its advertising is also poor. In addition to this it has poor technological infrastructure through which advertising and promotion has become also poor. (Grünig and Kühn, 2015)


Enter into the E-business is major opportunity of the Marks and Spencer. In addition to this, diversified its product and services in various area like food, beauty, electronics and other product is another opportunity for the cited venture.


Marks and Spencer have high number of competitors that is its major threat in the market. Furthermore, continuous changing technology is another major challenge for the cited venture. Moreover, regular changing customer demand and choice about the product and services is another threat for the cited venture.

Major competitors of Marks and Spencer and their competitive position

Marks and Spencer have about 345 department stores throughout the UK. It boasts about 480 locations in the 60 countries. It has been in business for more than 125 year so it has major three competitors that is Next Plc, Tesco and Asda. Its competitive position and market share are as follows-

Next Plc

Next Plc is the major competitor of the Marks and Spencer which offers clothing, footwear, accessories and home products. It has 200 stores in 37 countries in Asia and Europe a d the middle east.


ASDA is another major competitors of the Marks and Spencer which operates nearly 600 food and general merchandise stores along with supermarket and superstores.

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Tesco Plc

Tesco Plc is number one retailer in the UK which have 7800 stores in 14 countries. In Europe , Asia and north America.

New Business strategy

The major objective of market and Spencer is to deliver the high quality of product and services to customer and earn the maximum market share. In addition to this, its new strategy for attain its objective is produce environment friendly product and services in the international market. With assistance of this new strategy, cited venture can easily gain the high market share and customer attraction (Houdet, Trommetter and Weber, 2012). This new strategy assist to business enterprise in developing  new brand image in the market. Thus, it considers on the innovative approaches and creativity through which it can meet the needs and wants of the customer in the market by deliver environment friendly product and services in the international market. However, as per the research it has founded that recently Marks and Spencer is facing some kind of issue related to this environment friendly product strategy which are as follows-

Lack of clear marketing strategy

Company have lack of knowledge about the effective and suitable marketing strategy this it is another major issue for deliver the environment friendly product and services in the international market.

Unsuccessful international growth

In the international market, deliver the environment friendly product is quite questionable because there are 315 stores in 41 countries. At the starting stage sales were up by 12 % and profit up by 21%.

Issue related to the distribution

As per the research  it has been  founded that Marks and Spencer have many stores are located in the wrong place that is why they have very low sales.


From this report it has been concluded that business strategy is very important aspect for the organisation to attain the success in the competitive market. In the absence of effective planning and strategy, company can not gain the long term outcomes. It has been also ascertained that Marks and Spencer is  facing the various kind of issue for implementing the new strategy of produce the environment friendly product in the international market that is lack of marketing strategy, unsuccessful international growth, issue related to the distribution etc.

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