Marks and Spencer Case Study
1. Introduction
1.1 Company overview
Marks and Spencer, also known as M&S, is a major British retailer. It currently specializes in selling of apparel and luxury food items. M&S was founded in 1884 by Michael Marks and Spencer Leeds. The establishment started out as market stalls throughout England. In the beginning, M&S built its reputation on the policy of only selling British made merchandise and using British suppliers and M&S’s emphasis became on quality and getting value for your money. M&S established its label, St. Michael and by the 1950’s, nearly all goods were sold under the St. Michael’s brand. Women’s and girl’s apparel were branded and sold under the label St. Margaret. In the 1970’s, M&S makes strategic plans toward international expansion. In the 1990’s M&S held position as UK’s most successful, well known and profitable companies.
M&S took a sudden and unexpected turn for the worse and its profit share fell down to as much as 2/3. This fall would take several years to recover from and required a change in strategic management. In an attempt to obtain a cutting edge, M&S created a new department dedicated to new opportunities such as the food sector and the financial services sector. By 2002, the company changed its strategy of using primarily British suppliers and began outsourcing overseas. Due to uncertain competition in the market, the key focus on strategy became obsolete and caused a decline in the M&S in relations to its customers.
Under new management and restructuring, a plan was established to position M&S back to the center of the market. Currently, all of M&S’s business strategies are geared towards recuperating and take action if necessary. M&S has regained a good position in the market by providing a market for competition when dealing with suppliers offering designer and exclusive brands and as well as those offering lower quality merchandise.
By 2006, M&S had recovered market share however it was short-lived.
1.1 Company overview
Marks and Spencer, also known as M&S, is a major British retailer. It currently specializes in selling of apparel and luxury food items. M&S was founded in 1884 by Michael Marks and Spencer Leeds. The establishment started out as market stalls throughout England. In the beginning, M&S built its reputation on the policy of only selling British made merchandise and using British suppliers and M&S’s emphasis became on quality and getting value for your money. M&S established its label, St. Michael and by the 1950’s, nearly all goods were sold under the St. Michael’s brand. Women’s and girl’s apparel were branded and sold under the label St. Margaret. In the 1970’s, M&S makes strategic plans toward international expansion. In the 1990’s M&S held position as UK’s most successful, well known and profitable companies.
M&S took a sudden and unexpected turn for the worse and its profit share fell down to as much as 2/3. This fall would take several years to recover from and required a change in strategic management. In an attempt to obtain a cutting edge, M&S created a new department dedicated to new opportunities such as the food sector and the financial services sector. By 2002, the company changed its strategy of using primarily British suppliers and began outsourcing overseas. Due to uncertain competition in the market, the key focus on strategy became obsolete and caused a decline in the M&S in relations to its customers.
Under new management and restructuring, a plan was established to position M&S back to the center of the market. Currently, all of M&S’s business strategies are geared towards recuperating and take action if necessary. M&S has regained a good position in the market by providing a market for competition when dealing with suppliers offering designer and exclusive brands and as well as those offering lower quality merchandise.
By 2006, M&S had recovered market share however it was short-lived.