M&S Case Study

1. What are Marks & Spencer key resources and how do they help to make M&S competitive?

M&S made its reputation in the 20th century on a policy of only selling British-made goods. It entered into long term relationships with British manufacturers, and sold the goods under the "St Michael" brand, which was used for both clothes and food.

For many years the company’s mission has been to offer consumers quality, value, and service.

• The strategic intent was to have a simple pricing policy and the use of the ST MICHAEL LOGO as a sign of quality.

• Had structured formula for all its stores whereby a set of principles were held as core to the organization

• The value chain was well managed suppliers been local and control could be exercised over suppliers and the manner in which the supply to the customers was dealt with in a uniformed manner throughout.

• The company was well funded through public listing and held value for shareholders.

• The business was in a cash cow phase with business and financial risk being medium.

• The company had a high market share within their target market with the promotion of their Flagship product the ST MICHAEL brand.

• The company had a strong competitive position.

• Products were valued by customers due to high quality.

• Products were made locally and perceived to be of high quality as they were British products. This can be especially true after the post wars years and before companies started large scale globalization.

• Customer loyalty was built and maintained.

• The corporate culture and top down structure suited the environment.

• Corporate culture of the “family atmosphere” was adequate for the pre-globalization era.

• There was an understanding of what the customers valued – good quality at a good price.

• The stores were adequately staffed to supply a good consumer service to the client.

• There suppliers were totally reliant on them and thus placed them in a high position over suppliers.

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