Case Study Analysis of m&s

7/23/2019 Case Study Analysis of m&s

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HAMBRICK MODEL FOR MARKS & SPENCERS

1) ARENAS:

1. Product Category:

a) Clothing market

b) Footwear market

c) Food market

2. Product Range

a) Women’s clothing including shoes and accessories

b) !en’s Clothing

c) "ids

d) #ingeriee) Food and wine

$. !arket segment

!iddle Class consumers

%. &eogra'hical area

Worldwide across %1countries with $$( stores

2) Vehicles:

a) oint *entures

b) +rganic growth

c) Franchise ,greements

d) ,c-uistions

3) Diffee!"i#"$

a) &lobal rand /mage

b) 0ni-ue and customied 'roducts catering to need o dierent grou's and cultures

c) Catering to men women and kids

d) 3n4ironmentally sustainable business while reducing costs

e) 5igh 'roduct -uality

%) S"#i!

a) !o4ing rom domestic market to international markets as soon as domestic market

saturates.

b) 5a4e two management teams6 +ne or 0" and other or /nternational market



') Ec$!$(ic L$ic

a) /nternationaliation

b) +utsourcing chea'er raw materials rom countries like /ndia Pakistan *ietnam China

2) O*S ANAL+SIS

1) High Product quality

2) Strong domestic

consumer base

3) Customized products

catering to diferent

segments

4) Strong rand image!

trading "or more than

1## years

1) $ac% o" mar%eting

research

2) Poor in&entory control

3) High prices compared

to competitors

4) Clothing style not

"ocusing on young

customers

') (ailed to epand in

countries li%e (rance!

*S+ and Canada

,) $ac% o" rand

a-areness in +sian

countries

1) .pansion in ./

commerce

2) Segmentation and

targeting on basis o" age

group

3) .pansion in &arious

product categories li%e

grocery

4) 0iferentiate in terms

o" corporate social

responsibility') Store image ma%eo&er

(SO) strategy1) (urther penetration o"

mar%et using internet

2) Customized products

"or diferent age groups

3) .pansion in grocery

mar%et by ma%ing use o"

their brand image and

product quality

4) nno&ati&e CS

initiati&es to strengthenbrand image

(WO) strategy1) (ormulating SP

strategy by proper

mar%eting research

2) obust in&entory

management to handle

products li%e grocery

3) mpro&ing store image

in countries li%e Canada

to epand

1) Strong competition

"rom other "ashion retail

stores

2) lobal 5nancial crisis

3) hreat o" ne- entrants

4) hreat o" losing

younger audience -hile

catering to oldersegment

(ST) strategy

1) 6ore trendy and

"ashionable products in

comparison to

competitors

2) $o- prices -hile

ofering discounts and

ofer to deal -ith5nancial crisis

(WT) strategy

1) 7fering trendy clothes

to attract young

customers

2) Counter the ne-

entrants by ofering

customized clothing

STRENGTHS WEAKNESS

U R T U N I T I E S

T H R E A T S



Strategies for improving !siness in "#ina

Un$erstan$ing t#e "#inese mar%et• $earning "rom past mista%es !"or eample! Chinese body "rames tend to be

smaller than -estern body "rames and hence design the clothesaccordingly

• hrough etensi&e mar%et research in diferent cities o" China and

research targeted at understanding Chinese consumer more8

• Chinese consumer is &ery much diferent "rom -estern consumer as is

e&ident "rom comparison o" Ho"stede9s cultural dimension in ehibit 4

• 6iddle class consumers -ant more designer label rather than umbrella

brand li%e 6: S

• *nderstanding the competitors li%e ;ara! H:6! *niqlo and also ne-

entrants8

&' Pro$!t• +daptation o" products to local Chinese mar%et is o" prime importance

because Chinese culture is -ay diferent "rom <estern as is e&ident "rom

the comparison o" Ho"stede9s cultural dimensions8

• Secondly! the perception o" Chinese consumers such as the 6:S clothing

-as directed to 4#/'# years old middle age men and -omen! that needs

to be changed8

• Create brand a-areness o" the 6a Sha ai ho =he 6:S Chinese brand)

' Prie• he ma>or problem -ith the pricing is that -hile 6:S aims to pro&ide

quality goods at lo- prices but their price proposition in China -as "ar

beyond the reach o" a middle class Chinese8

• Secondly! the prices need to be ad>usted to match the income brac%et o"

the Chinese people8 (or this 6:S should source more materials "rom

locals8

• hirdly! the company should remo&e the price imbalance pre&alent in its

products range8



*' P+ae• Since China is the -orld9s largest mar%et "or grocery! the company should

open "ood only "ormat o" its stores in China and each at con&enient

location! targeting the densely located areas all the more

,' Promotion• Promotional material should be adapted to Chinese mar%et so that

consumers can better understand the products and rand as a -hole8

• +daptation can be done by "eaturing Chinese models alongside <estern

models8

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Case Study Analysis of m&s