Marks and Spencer Essay Example | Topics and Well Written Essays - 500 words

Marks and Spencer - Essay Example Its strategies in UK revolved around a) supply management b) brand power c) customer orientation and d) empowerment of employees. As it moved into the 90s, M&S needed to overcome the challenges identified above (Montgomery, 1994, HBS Case study # 9-391-089). Tools Value chain concept: The case highlights M&S emphasis on ‘value chain’ concept as a strategy for economizing on operations, maintaining long-term supplier/buyer relations and for quality control. Popularized by Porter as a competitive advantage tool, value chain concept dovetails the different operations of a buyer and his supplier(s) in order to achieve maximum efficiencies for cost control for both parties (Porter, 2004, Ch.2, pp.33-61 & 107). Using this strategy, M&S attained a strong reputation and position in UK market, where its net profit (your last name) 2 margin was around 10 to 11% in the 80s. In contrast, its overseas operations yielded just around 6% net profit due to external factors like tariffs a nd local competition. Differentiation: The case highlights the differences between the French, Canadian and UK markets. France is a high margin market and although the few customers who accessed M&S products are well satisfied, many others, especially the younger generation, preferred other brands.