Answer To: July 2020 MITS6005 Big Data Case Study Copyright © 2020 VIT, All Rights Reserved. 2 MITS6005 Case...
Hartirath answered on Sep 04 2021
Running Head: Strategy Analysis
Strategy Analysis
TOPIC: STRATEGY ANALYSIS
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Contents
Introduction 3
Company’s profitability be assured without compromising customer retention 3
Various issues faced by Marks & Spencer 4
Strategies M&S uses to encourage customer retention 5
Product quality 7
Service quality 7
Conclusion 8
References 9
Introduction
Marks & Spencer Corp. is a large global retailer headquartered in London. It specializes in selling the quality food, householdclothing as well as products. In 2007, Marks and Spencer as the main apparel retailer in the UK with a market share of 11.2%. The company’s food sales also accounted for 49.8% of British business and its market share was 4.3%. The company has numerous clothing, food and convenience stores around the world and has grown worldwide. The company’s strategic management provides overall guidance for the company. "The strategy is the scale and long-term direction of the organization; by managing the company's resources in a challenging environment, meeting market needs and shareholders' expectations, it can bring significant benefits to the organization."
Identifying main issues
The strategic development of a company can be due to various factors, such as economic, political, technological and social issues. In the political sphere, M&S has taken advantage of a higher cost structure and reduced market share[13]. From an economic point of view, the company focuses on importing products from abroad in order to save costs and thus help to realize its “higher quality” through cost-saving programs. As consumers shift their demand to more fashionable and cost-effective products, the competitive position of M&S is declining. From a technical point of view, the media play an important role in bringing new fashion to consumers[14].
Company’s profitability be assured without compromising customer retention
The success of a company depends not only on the quality of the product but also on the structure of the business. There are many factors that affect a company’s profitability, such as the threat of substitutions, the threat of new entrants, the power of supplier or buyer agreements, the level of competition, and so on[9]. To assess the overall strategic position of each company and its environment, SWOT analysis is critical. They helped analyze key strategies incorporated into commercial as well as marketing goals.
Various issues faced by Marks & Spencer
Fashion faux pas:One third of the country's women still buy the products. But in such a fierce competition, this chain store tries to protect the charm of every woman’s clothing. At the same time, women of all ages want to be stylish and M&S is trying to match their desires. However, the lack of compatibility and competence of multiple brands under the group (e.g., limited edition) has created some problems[4].
Poor stores:M&S has big stores, so navigation is difficult. Although the efforts have been made to set up coffee workshops in some shops, more and more work is needed to create more attractive locations.
Peak stuff:According to the analysis of global data, sales of footwear and clothing in 2017 decreased by 0.9% and is probable to decline further. But compared to Zara and H&M, still have more options and choice for female[8].
Wired world:Given the rapid growth of the Internet, M&S is facing more competition, which makes it easier to buy and sell people and compare prices around the world. Today, people are turning to online shopping to benefit small brands.Although the company faces many challenges. The most essential issue for M&S is to increase customer retaining.
Customer insights of the company:M&S uses a lot of data. So, they have a lot of information about the activities of their stores as well as departments of these stores. Furthermore, companies can achieve a good level of customers based on operations, behavior, and relationship information[12]. The key to analysis by insiders is not access to large amounts of data, but how they provide resources to generate practical insights.The focus is on understanding the overall customer experience. It is necessary to find the client’s feelings, thoughts and behaviors and a clear understanding of how you want them to feel, your thoughts and behaviors. Therefore, it can change behavior and communicate between clients accordingly.
Product insights of the company:M&S also focuses on “fitting” clothing. Means that high-quality of clothing is...