FUNDAMENTAL IN FINANCE
STUDENT NUMBER: 105672
SEMESTER A, 2009-2010
Marks & Spencer are one of the UK’s leading retailers, with about 21 million people visiting its stores each week. It offers stylish, high quality, great value clothing and home product, as well as outstanding quality foods, responsibly sourced from around 2,000 suppliers globally. With over 815 stores in more than 40 countries around the world, having over 600 domestic and 295 international stores. The Head office of M&S is situated in the waterside house in the city of west minister, London England. It is one of the largest clothing retailers in the United Kingdom, as well as being an up market retailer. It was awarded in 2008 as the 43rd largest retailer in the world, which was very good for its reputation. M&S is a partnership company, founded by Michael Marks and Thomas Spencer in Leeds. Marks &Spencer is listed in the London stock exchange, and is a constituent of FTSE 100 index.
Analysis of marks and Spencer using porter’s five force models:
Competition among firms in the same industry tends to be one of the major characteristics of modern market led economies caused by the pace of globalization of markets and industries as well as technological development in areas such as information, communication and technologies. Johnson Scholes (2002), Porters (1980) five forces framework which refers to potential entrants, buyers, suppliers, substitute. In industries competitors provide a useful means of analysing industrial environment to assist companies in choosing effective competitive strategies.
Potential Entrants: Marks & Spencer is a traditional clothing retailer department store as well as Topshop. It is obvious that the decreasing level of customer loyalty has resulted in higher degrees of competition while threats have also come from new entrants into this industry. Mintel (2005)....