M&S Case Study Essay Example for Free

MS Case Study EssayIntroductionAs stated by Andrew (2001), the porters generic strategies framework answer the business to evaluate a competitive atmosphere. The five Porters force mainly deal with main course threat, power of buyers and suppliers, substitutes threat, and competitive rivalry.The threat of entryAccording to Porter (1980), entry freedom into a new market is normally considered an indication of the extent of companions competitiveness. Porter further states that the bigger the barriers to entry, the less the threat of new companies moving into the market. Marks and Spencer individually can keep prices unkept strategically to minimize possible entrants into the market. This is called entry deterring pricing that establishes a barrier to another(prenominal) competitors. As stated by Anthony (1999), these barriers are unique characteristics of an industry that defines it. The barriers decrease the pace at which new firms enter the industry thereof maintaining l ow profits levels for other companies.The power of buyersFor Marks and Spencer to root to its customers, it has to emphasis on grassroots acquisition of customers so as to offer an enlarged talk terms power to them. Consumers can remedy their bargaining power suppose the services or products of an organization are not affordable or are of low quality. The consumers an in addition have strong bargaining power suppose they purchase standard, undifferentiated goods from suppliers. The buyers will be weak if producers can over own sell if the producers are not standardized and the buyer cannot switch to another product (Johnson and Scholes, 2002). The company has tried to minimize such cases for high competitive advantage. The company has also to find new delivery methods that will improve customer satisfaction.Power of suppliersAccording to Porters (1980), a supplier can have influence suppose the company works within a limited market and there is a degree of substitutability. As a sserted by Grant (2005), there are any(prenominal) factors that determine the power of the company to attain all the needed account to meet the relevant profits. There are credible onwards integration threats by suppliers, suppliers stringency, cost of switching suppliers, and its powerfulness to boycott low quality products (Anthony, 1999). The company has to maintain a chain of suppliers for its products to beat the competition.Threat of SubstitutesPorter (1980) describes the threat of substitution as the identification of substitute products that can perform the same function as the product in question. Marks and Spencer experiences some threats from the products of other companies. To an economist, intimidation of competitors take place supposes the product demand is affected by change in price of the competitors. Marks and Spencers products demand have been adversely affected by the strategic change in prices of other companies (Coyne, 1996). The new fashions available and th e changing dressing mode are creating high competition amidst Marks and Spencer and other competitive companies.RivalryMarks and Spencer faces high competition because various companies have emerged producing high quality products at affordable prices. This high concentration shows that the company has many competitors and majority has an important market share. To counter competition, Marks and Spencer has managed to lower prices so as to gain a temporary advantage. It has also strived to improve their product features and qualities during the manufacture (Grant, 2005).ReferencesAndrew, H., 2001. Understanding Potters five force analyses in the industries view in the global world. Macmillan publishers. pp.22-27.Anthony, W., 1999. Strategic comparison of business to consumers relationships. Macmillan publishers.Coyne, K., 1996. Bringing obedience to policy. The McKinsey Quarterly. No.4.Grant, R., 2005. innovational policy investigation. The Blackwell Publishing Ltd., Oxford (U.K.) .Johnson Scholes, 2002. Strategic Management. 6th ed. Exploring Corporate Strategy Text Cases.