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M&S has been affected by the Brexit which made the trade with EU difficult and raise the costs. The outcome of the British EU referendum on 23 June 2016 resulted in a dip in the company’s sales in its last quarter (Davey, 2016). Due to the higher cost structure, the company has also losses market shares when entering new markets (Marks & Spencer, 2019).
Following the UK’s decision to exit the EU, the company probably will face legal issues. Losing access to the international market will affect M&S chain.
The decision will require new VAT rules and import duties and tariffs will be imposed (Dentons, 2016). Jointly with the reduced buying power of the pound and with ?1.1 billion in revenue coming from international markets, the company needs to put together a strategic plan on how to minimize the likely impact of Brexit.
While competitors such as Lidl, Aldi, Asos or Debenhams followed a strategy of discounted pricing, M&S accentuated higher quality products and better consumer satisfaction (The Marketing Society, 2010).
this strategy led to a decrease in sales, however, it resulted in an increase in consumer preference and desire to seek both value and quality. In 2018, this strategy helped the company maintain its market share internationally. Furthermore, clothing sales reached a ten-year lowest level in the UK (Davey, 2016)
Moreover, other retailers like Waitrose, Morrison, and Tesco have high-quality food products at very reasonable prices compared to M&S food the same with clothing products as well.
M&S has to redirect its attention to the new generation. There are a big difference in customers behaviors and the technology they use to satisfy their needs for fashionable products. There is a widespread assumption that M&S is out fashioned and nontrendy and has repeated brands such as Autograph and Per Una. As well as according to the M&S distribution system Finance director Dyson worked on a 20:20 project which indicates that many stores were located in the wrong place causing very low sales. However as part of its sustainability plan Plan A.Is to build relationships with customers, suppliers and the communities (Corporate.marksandspencer.com. 2019). In 2015, food surpluses were allocated by working with redistribution partners through a ‘Community Shop’ program. In addition, The Home Christmas campaign ‘ #MyMarksFave ‘ this Christmas launches on social media on 13th November 2018. And a monthly first Instagram series ‘What’s New at M&S’ gets a festive makeover with two special Christmas episodes on 15th November and 14th December (Mail Online, 2019).
Implementing a digital transformation strategy in 2010, the company has come too late into the digital retail market. Its own M&S.com was only launched in 2014 after three years of development (The Telegraph, 2019). In addition, the company has technical difficulties and on its website when introducing their members at the end of 2015 leading to a temporary website broke down (Curtis, 2019).
M&S has to
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