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Marks and Spencer Case Study SWOT Analysis

Marks & Spencer took time to involve into the social media platform. The fact was that until the middle of the 2000s, the company was not selling its products online. This resulted into a big lag into the worldwide competitions and hence as announced by the company itself, the sales rate dropped by 8.1 % that resulted into a huge dip in the share price in 2014, July. After this drastic fall in the revenue, other senior heads and the CEO gave the entire blame on the ecommerce platform of Mark and Spencer. The website of the company was launched and it was a complete bang. Some complaints came from the customers regarding the website. They reported that the website had buttons that were not clickable and some of the complaints were about the entire dysfunction of the website. The products were limited, items used to disappear from the cart and the filters were difficult to use.


This began in England, West Yorkshire, in the year 1884, as the destiny of Thomas Spencer and Michael Marks collided. Michael Marks was a British-Polish money manager and a businessperson who purchased merchandise from Dewhirst and sold them in close by the towns (Toms and Zhang 2016). As his business developed, Michael Marks was known for one of the stalls he set up in Leeds that offered each item in a penny. There, he put a banner close to the stall saying, "Don't Ask the Price, It's a Penny". In the interim, Thomas Spencer was a hopeful British financial specialist who was a clerk at I.J Dewhirst's discount organization.

The downfall of the company

However, the empire reached its peak into the ending of the 1990s, by the second millennium; Marks & Spencer was in a severe crisis. Many factors have contributed into the fall of the profits. Firstly, the supply chain of Marks & Spencer was in a great need for an overhaul (Leite 2020). By the use of the local suppliers, the company was successful in winning the hearts of the British. Nonetheless, as the provider expenses of the United Kingdom kept on rising, the organization's net revenue endured while the opposition diverted to bringing in from minimal expense nations.

When the business chose to begin bringing in, the switch came past the point of no return. The hold out had been in vain. Marks and Spencer would lose a centrepiece of its appeal to the British public, and it previously had addressed the significant expense of remaining with British providers excessively long (Leite 2020). Another factor that loaned to the decrease of the brand is that Marks and Spencer was slow off the mark of tolerating various types of instalment.

International Expansion

Marks & Spencer organization esteems fuse a strategy tracing all the way back to the mid twentieth century of just selling British-made merchandise made steadfast clients. Notwithstanding, the brand perceived the need to develop locally just as globally. Therefore, in 1960, Marks and Spencer opened its first Asian store in Kabul, Afghanistan, trailed by various urban communities in Europe (Choudhary and Piparo 2020). The worldwide development kept going through the 1980s. While the stores in Paris stayed beneficial, numerous other global urban areas were not a total example of overcoming adversity. A sum of eighteen non-beneficial shops in Europe were sold in 2001.

In Canada, the brand was a dull retailer obliging seniors and exile the British. Endeavours to modernize the brand came past the point of no return, and store terminations before long followed (Fisher 2016). In China, after Marks and Spencer by and by neglected to prevail upon the neighbourhood buyers, it recruited Maria Roday, previous alumni of Inditex with a standing for nailing the most recent customer patterns, as the new senior supervisor for the Chinese market.


SWOT Analysis


·       Strong brand recognition image in the market.

·       A large number of stores and outlets globally.

·       Product portfolio of diversified products.

·       Famous designer brand.


·       Manual labour gives a huge rise to the operation cost of the company.

·       Bad publicity of the company due to non-trendy shops.

·       Reduction in the volume of the sales of the consumable products.


·       Rise in the experiences of online shopping.

·       Digital marketing.

·       Expansion globally covering almost the entire world.

·       The company launches food that are healthy for consumption and the health trend.


·       High consumption in the market.

·       Change in the social environment.

·       Mass pollution issues.

·       Rise in the taxes will raise the cost of the products.

·       Price sensitive customers.


Pestle analysis

Political factors

Marks & Spencer has had the advantages of EC's economic accords and that further prompts decline in the sourcing costs. Estimating guidelines of different nations, for example, are there any evaluating administrative instrument for Consumer Services (Bocken 2017). Marks and Spencer accepts that is vital to work intimately with the public authority and cooperate with them to secure an association's genuine advantages.

Economic factors

Economic and financial components incorporate expansion rates, loan costs, unfamiliar trade rates and monetary development designs and so forth The United Kingdom is probably the biggest economy on the planet and furthermore is an open economy (Bismark et al 2018). Financial and money related approaches of United Kingdom are appropriately overseen as the public authority has solid funds and has effectively kept a low pace of expansion.

 Social factors

Purchaser buys are affected by social, social, individual and mental changes on the lookout. Throughout the long term, the modest dress industry has progressively found the changing patterns on the lookout and they give more affordable adaptations of the garments on the lookout (Nandonde 2019). The attire line sold and the space given to it essentially relies on the area and segment.

Technological factors

The organization is engaged around formation of another Technology Operating Model, which would fundamentally help Marks and Spencer in misusing innovation including the reception of industry-coordinated strategies.

Legal factors

The enactments in each nation are consistently evolving. Marks and Spencer constantly direct instructional meetings on regions, for example, wellbeing and update them each year to keep themselves refreshed with the current laws and enactments.

Environmental factors

Marks and Spencer have methodically gone about as facilitators for achieving an amazing change where around 75000 workers just as 2000 providers of Marks and Spencer have gone about as connections for decreasing the variations in the public.

Challenges faced

On the off chance that there is one thing Marks and Spencer detracted from their global development disappointments, it is that you should speak to your neighbourhood buyers' inclinations. Bolland called for significant change beginning with the rollout of another plan for actual stores in May 2011 that would be founded on socioeconomics like opulence and age of the stores' areas (Narasimhan 2020). In light of customer reviews on the trouble of in-store route, Bolland executed another store "route plot". Simpler shopping implies clients that are more joyful. More clients that are joyful go through more cash. The brand's clothing division had an 11% piece of the pie in the United Kingdom by 2013.

Growth of the company

Constantly 2009, pressures from benefits and deals misfortune drove Marks and Spencer to start a rebuilding plan. They took measures like terminations of low-benefit stores to reduce expenses, alongside stopping a few of the brand's low-benefit lines (Faria 2020). The Chief Marc Bolland carried out another technique meant to fortify brand picture and increment benefits. The brand would modernize its actual stores and spotlight on redoing its ecommerce stage.

Growth of the company



By the end of the discussion, one can sum up that the Marks & Spencer Marks and Spencer set aside effort to include into the online media stage. Numerous variables have contributed into the fall of the benefits. Primarily, the inventory network of Marks and Spencer was in an incredible requirement for a redesign. Marks and Spencer would lose a focal point of its appeal to the British public, and it recently had tended to the huge cost of staying with British suppliers unreasonably long. Marks and Spencer association regards meld a system following right back to the mid-20th century of simply selling British-made product made resolute customers. In case there is one thing Marks and Spencer brought down their worldwide advancement frustrations, it is that you ought to address your local purchasers' tendencies.


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Narasimhan, A., 2020. Corruption, leader narcissism and the dynamics of board governance: The case of Marks & Spencer, 1999–2000. In Dynamics at Boardroom Level (pp. 171-176). Routledge.

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Toms, S. and Zhang, Q., 2016. Marks & Spencer and the decline of the British textile industry, 1950–2000. Business history review90(1), pp.3-30.

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