Case study: M&S

Question 1

In the PEST analysis of M&S, what were the key points of ‘P’?

Answer 1

POLITICAL

Political opposition to out-of-town shopping (PPG6 government rule disallowed planning permission)

Political opposition to car-borne shopping

Question 2

In the PEST analysis of M&S, what were the key points of ‘S’?

Answer 2

SOCIAL

Social & market fragmentation giving way to emerging market segments:

• demographic (age, income)
• psychographic (lifestyle, age, self image)

Shopping channel fragmentation

• Focused & niche retailers
• Brands
• Supermarkets selling clothes (George)
• Internet retailers

Shoppers’ increased credit card usage

Customers like out-of-town & car-borne shopping

Dress down Fridays

Increase consumer acceptance of discounters

Ageing population: high disposable income

Change in fashion trends

Question 3

In the PEST analysis of M&S, what were the key points of ‘E’?

Answer 3

ECONOMIC

Recession in Far East

£ Sterling strength: imports cheap, exports expensive

Question 4

In the PEST analysis of M&S, what were the key points of ‘T’?

Answer 4

TECHNOLOGY

Computer capability increasing

Internet commerce increase

Question 5

In the SWOT analysis of M&S, what were the key points of ‘S’?

Answer 5

STRENGTHS

Strong relationships with UK partners

Brand awareness & loyalty

Good quality underwear

Growing mail order business

Question 6

In the SWOT analysis of M&S, what were the key points of ‘O’?

Answer 6

OPPORTUNITIES

Effective segmentation - understand markets
- Cater to needs

Dress down Fridays
- Sell more casual clothes vs smart

Mail order & rise of internet

• Per Una, Autograph, Indigo, Blue Harbour
• Sub-brands

Sourcing from abroad

Question 7

In the SWOT analysis of M&S, what were the key points of ‘W’?

Answer 7

WEAKNESSES

Outdated clothing

Brand perception of younger buyers:

• One brand: St Michael’s
• Not flexible enough to satisfy all

Supply chain delays

Problems with forecasting

Stock taking issues

Quality issues

Refusal to accept credit cards

High food prices

All male board

Question 8

In the SWOT analysis of M&S, what were the key points of ‘T’?

Answer 8

THREATS

Decline of department store sector in UK

Discounters increased competition: Peacocks

Competition from Tesco & Sainsbury’s in food

Aspiration purchasing - Hugo Boss

Recession in Far East - store closures

Competitors:
- Food, internet, clothing, discounters, supermarkets, foreign competitors

Ageing population

Location & planning of stores”