In term of stakeholders who contribute considerably to M&S success, M&S has good strategies for win-win situation. Most of suppliers of M&S are reliable with providing high qualified materials such as fresh food, luxury fabric for clothes and be well-equipped with modern machines. M&S also has campaigns to support their existing suppliers in innovative ideas. For the process of high qualified product, M&S always ensure the process followed the standard from the starting point.
As a result, in term of customers, M&S is confident to provide the best quality products and service to customers. For clothing sector, M&S concentrates on 30-55-year-old market segment with Per Una brand name, Simply Food with the most convenient design and health and nutrition consideration. Furthermore, developing a loyal card scheme combined with credit card ‘&More’ which allows customers could earn voucher for further purchase in M&S could bring more value to customers and increase their loyalty.
For the M&S stores, there are always renovations for more customers’ conveniences and attracting new customers with attractive design. “Simply Food” concept is launched to bring nutritious foods to customers, which increase customers preference toward M&S with health concern campaign. Those could create competitive advantages for M&S to compete the competitors. Asda and Waitrose are considered as direct competitors with the same market segmentation for women wear at 30-55 year old.
Asda is second ranking in improved food retail in UK after M&S. To business partners, M&S is successful in creating good collaboration with BP to sell “Simply Food” in BP stations for widening distribution channel and support sales, marketing. To satisfy the society’s concern, M&S takes commitment to Corporate Social Responsibility (CRS) to protect environment with gas and waste controlling program and 5p charge for one carrier bag. Operated in food industry, M&S has to update regulation from government for Health & Safety British Standards.
In some cases, the regulation could be obstacle for M&S operation when it could affect on profits or current process of manufacturing. Economic factors The world economic is still in downturn, having considerable influence on consumers’ decision making for purchase. They will restrict to purchase luxury items as food and clothes luxuries and consider carefully about the price based on their budget. This affects dramatically to profit of M&S when they seem to have to give many discount programs for customers to ensure good provisions and stock.
It could be big challenge for Mark Bolland to recover M&S from declining net profit and sales revenue. Social factors The trend of clothing is always changing fast. Therefore, M&S needs to update the trend frequently to satisfy customers and compete to competitors in this industry. What is more, focusing on customers over 30 year olds, M&S must concentrate on providing clothes made from good fabric, smart cut and other high qualified materials (Modernwomenworld 2011).
At this modern age, advertisement is the most effective means to get loyalty of existing customers and attract new customers. As a result, the content of adverts should be invested and M&S must use innovative means to bring the brand name to customers and maintain relationship with existing customers by offering vouchers, promotion campaigns, updating their point in their loyal card. Furthermore, convenience is the most consideration to shoppers. Therefore, self-service machine maintenance and effective distribution channel could satisfy customers.
Legal factors Most of legislation affecting M&S operation relates to taxation, new regulation relating to Health and Safety for consumers because M&S provide foods product. For example, M&S must follow with the regulation for standard packaging to ensure to use safe containers for foods. Environment Similar to other companies, M&S is under pressure for eco-friendly materials and process of manufacturing which are promoted daily on television, newspaper with protecting environment purpose. Therefore, they must be careful with every action in production.