Each and every organization provides products and services to people to fulfill their needs and wants. Management responsibility is to utilise resources that is funds, material and manpower efficiently. Human resource, finance, operation, marketing, sales and R&D are various department which help firm to execute business operations and deliver appropriate items to customers. The present report is based on Marks and Spencer which is British retail firm headquartered in London. Home products, luxury items and clothes are various products which are provided by firm to have large customer base. This assignment specifies information about different positioning tactics used by companies to establish and maintain competitive advantage. Porter's five forces model is used by seniors to identify market conditions and have complete information about suppliers, competitors and customers (Balaz and et. al., 2013). Management identify aspects such as supply chain, human resource, bran value, pricing and promotion which are acknowledged to design system and make it function effectively. This help seniors to position firm higher than competitors and enhance image and goodwill in market.
Competitive advantage: Each and every organisation require to have adequate funds, material and manpower to execute appropriate business activities. It is essential that administration have skilled and competent people which help M&S to deliver quality things and quick services to customers. Along this, latest tools and technologies such as internet benefits management to maintain record of consumers and keep proper track of items. This advantage company to attract customers by giving them creative and innovative things.
Management frames policies and uses appropriate strategies in respect to pricing, promotion, distribution and product which help M&S to enhance reputation and goodwill in respect to rival firms that are Tesco, Aldi, Asda and Wal Mart. These are various aspects which are identified by senior to improve position are stated below (Barney, 2012):
Human resource: Employer responsibility is to conduct recruitment, selection, compensation, training and development activities. It is essential that M&S have adequate manpower which help management to execute appropriate business operations. This help seniors deliver adequate items and services in market in according to taste and preference of people. Meeting and conference are organised by human resource to inform staff members about environment, system, products and market conditions. Along this, seminars and sessions are executed to improve skills and abilities of employees; thereby deliver quality things and quick services to customers. This help company to increase market reach and customer base which benefit management to enhance sales and revenue.
Supply chain: In M&S, administration maintain relations with suppliers to have adequate products available in store. With use of internet, appropriate information is maintained by seniors about different variety of items. This help management to timely order products and have appropriate amount of goods in store.
Brand values: M&S has strong image and reputation in market which help administration to attract large number of people. Different variety of home products, clothes, food and various luxury things are delivered by company. This help management to position firm higher than than competitors (Campbell, Coff and Kryscynski, 2012.).
Marketing: M&S provide different things that is food and clothes to have large customer base. Along this, pricing and promotion strategies are used by management to attract people by informing them about items and services. Sales promotion, online advertising, publicity and various other promotion techniques. These are used by firm to provide information to public about modifications and changes in products that are made by management.
Pricing: M&S provide quality and luxury items which are determined by management in respect to products and its components. High prices are fixed for each product which is due to type and quality of things. This creates problem for firm to have large and medium customer base. Thus, management have less number of people which impacts on sales and profitability (Gomez and et. al., 2014).
Porter's five forces model of M&S:
This is holistic theory which defines strategic decisions which are made by management in respect to rival firms. Business position and share is analysed by company to improve sales and revenue. This framework helps M&S to anticipate needs and wants of people to construct and sustain competitive advantage. Market opportunities and threats are identified by seniors to design system and make it function effectively. Hence, these are five elements which are examined by administration are stated below:
The threat of new entrants: In every industry new firms joined when particular segment is making profit and leave to prevent from losses. Customer's taste and preferences are dynamic and keeps on changing with time. For this, M&S makes changes in products and deliver creative and innovative things to attract people and make them purchase items in according to their demands. New items and services are innovated by seniors to enhance number of customers by giving them goods according to their demands. Large amount of money is invested on research and development department to conduct market survey and acknowledge needs and wants of people. This help M&S to increase reputation in respect to competitors that are Tesco, Aldi, Asda and Wal Mart (Javaid, 2014).
Bargaining power of buyers: Customers are essential part of organisation which buy things and pays money to fulfil their needs and wants. Firm sales and profitability depends upon people requirements and willingness to purchase products. Management of M&S responsibility is to set appropriate prices and provide various offers and discounts to influence customers.
Bargaining power of supplier:Administration require to have adequate raw material to manufacture things and deliver appropriate items in market in according to needs and wants of people. M&S is retail store which need to have sufficient items and varieties in outlet to have large customer base. Along this, efficient supply chain is constructed by management to maintain relations with them and timely deliver things in respect to demands of public. M&S has opportunity to use third party manufacture concept which is used by Wal Mart and various other firms.
Threat of substitutes:Market have large number of firms in retail industry which determine that customers have choices to purchase things in according to their taste and preferences. For this, management duty is to use latest tools and techniques; thereby manufacture innovative and creative things. M&S is retail store which has different variety of home products, clothes and luxury things to people. It is service oriented firm which provide variety of goods to customers (Kajanus and et. al., 2012).
Industry rivalry: Every sector have various companies which provide items and services to enhance sale and generate adequate profit from business. Retail sector is industry which has intense level of competition. For this, management responsibility is to set appropriate rates for goods to attract customers and lower profitability. M&S construct sustainable differentiation that is items are designed in such manner that seniors are able to grab people and make them purchase things accordingly. Besides this, administration collaborate with rival firms to enhance market share and position.
This is tactic which is used by organisation to provide things in according to demands of people. Company, suppliers, customers and competitors are various components of micro environment which directly impacts on business activities. Along this, political, economic, social, technological and legal factors are acknowledged by management. This helps them to have complete information about market conditions; thereby make system function effectively.
Segmentation:This aspect define division of market into various segments that is heterogeneous things are converted into homogeneous tactic. People are group in according to their similar taste and preferences. Demographic, behavioural, psycho graphic and geographic are various elements which are used by M&S to provide products in respect to needs and wants of people and country. Food, clothes and different types of items are present in store to deliver things in according to requirements of customers (Lidstone and MacLennan, 2017).
Demographic segmentation is adopted by M&S to which define that different types of clothes are given by company to customers in according to market trends. Cost conscious group are prime objective of firm which benefits management to attract large number of customers by providing variety of range items in outlet. This advantage firm to improve sales and generate adequate revenue from business.
Targeting:This concept specifies that companies provide items and services in according to demands of people. M&S is retail store which provides different varieties such as clothes, home products and so on. These are things which are delivered in respect to people that is male and female. Along this, income level, age and various aspects are considered by management to provide things in according to customers. Upper and middle class are criteria used by M&S to provide quality products to people (Porter, Huang and Woodward, 2013).
Positioning:This is another tactic which define activities conducted by administration to inform public about products and services. Promotion, pricing and distribution strategies are used by M&S to attract customers and make them purchase things in according to their needs and wants. This is a premium brand which provides high quality things to people. Management have set high rates for each product which is due to market image and quality of product.
This technique is used by management of M&S to have complete information about market conditions and system abilities. Market research is tool which helps senior to acknowledge needs and wants of people. Along this, competitor's offerings and tactics are anticipated to design system and use appropriate tools and technologies (Schilke, 2014).
Strengths: M&S is famous retail store which has outlets in UK and various other nations. Skilled and competent staff members are present in firm which help management to deliver own branded goods. Different home products, clothes and luxury items are provided by company to have large number of customers which buy things in respect to their taste and preferences. This benefit superior to enhance market reach and improve sales and profitability.
Weaknesses: Retail industry have large number of firms which affect M&S and its market share. Management require to register company and take license from authorities to safeguard their brand and prevent things to be misused and copied by competitors. They even require to make changes in items and deliver innovative products in market. For this, seniors require to use latest technologies and make employees capable to provide quality things and services to customers. This consumes large amount of funds, time and efforts of top personnel to train staff; thereby enhance skills and abilities of members.
Opportunities: Management of M&S require to increase market reach which help them to have large customer base (Sevkli and et. al., 2012). With technological advancements, internet enhances various tactics for firm to provide appropriate information to people about variety of items. Executive has opportunity to develop website and give online facilities to customers to purchase things from their home. This advantage M&S to introduce new market segments and increase sales volume and profit. There is an opportunity to M&S that if it will expand its business in China, India and various other countries, then firm has increase number of consumers available.
Threats:M&S is retail store which require to deliver items and services in respect to needs and wants of people. Management responsibility is to frame strategies and policies in respect to laws and legislations of government. As, company have outlets in different nations which influence business operations. Exchange rate impacts on import and export of items from one nation to another. Thus, senior select countries which has less changes in rate and policies.
Tesco, Aldi, Asda and Wal Mart are various rival firms of M&S which define that management require to deliver things in according to taste and preference of people. Along this, company even require to have skilled and competent workforce which provide quality products and quick services to customers to satisfy them and make them loyal towards firm.
Modifications that are made by Marks and Spencer:
M&S is retail store which require to provide different variety of items and services in according to market trends. It is essential that management deliver quality things to people in respect to their taste and preference. Luxury products that is food, clothes and home appliances are provided by M&S. Besides this, executive have branches in different nations which help company to have large number of customers. Therefore, these are various changes that are made by administration to improve sales and market reach are stated below (Yuan, 2013):
- New items and services are provided by M&S to have choice to people to purchase things in according to their demands. Market trends are used as prime goal to design products and deliver luxury goods to customers.
- Latest tools and technologies are used by company which help management to deliver quality things and quick services to people.
- Meeting and conference are organised by seniors to provide appropriate information to staff members about items and deliver adequate services to customers.
Recommendations: These are various suggestion which help M&S to increase market reach and customer base are as follows:
- Feedback:Market survey are various techniques which help management to have complete information about taste and preference of people. This is best tool which benefit M&S to assess system capabilities from customers feedback. Along this, seniors even identify needs and demands of public which are used to design and deliver creative and innovative things in outlet.
- Market research: This is another tactic which helps administration to acknowledge image and goodwill in respect to rival firms. Products and strategies of Tesco, Aldi, Asda and Wal Mart are anticipated by seniors to make system function accordingly. This help M&S to deliver items and use appropriate pricing and promotion strategies to attract customers and influence their purchase decision (Wagner III and Hollenbeck, 2014).
- Expansion: Enlarge business and open new outlets in different countries such as China and India. This help management to enhance number of people; thereby improve sales volume and profitability.
- Online marketing:M&S is establishing websites to provide information to people about variety of products. Besides this, administration also give facility to consumers to purchase things online.
- CSR activities:M&S has strong brand image, but management require to execute corporate social responsibility to provide items and services to fulfil needs and wants of people. It is essential that different range items that is low price products are available in store. This help company to increase customer base and sales.
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From the above report, it can be comprehended that every industry have large number of firms which are executing business. It is necessary that administration design system and use appropriate tools and technologies to deliver adequate items and services in market. Competitive advantage is aspect which defines information about different strategies in respect to pricing, promotion and distribution used by Marks and Spencer. This helps management to position firm higher than rival firms. Along this, seniors are even able to attract customers and make them purchase things in according to their taste and preferences. Segmentation, targeting and positioning are various techniques that are used by administration to provide things in respect to demands and needs of people. SWOT analysis is tactic which benefits seniors of M&S to have accurate and complete knowledge about market conditions and system abilities. Thus, management identify modifications and changes that are made in products to grab attention of people; thereby enhance sales volume and profitability.
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