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Porter's Five of M&S

Marks & Spencer, a leading British retailer established in 1894, faces several competitive forces according to Porter's Five Forces analysis. While buyers have strong bargaining power due to concentrated preferences and economic conditions, suppliers have weaker power as M&S sells many branded products. New entrance is difficult due to M&S's large size and understanding of the British market. Duplicate products pose a threat, but M&S has advantages in food and apparel. Main rivals are Waitrose in food and clothing retailers like Peter Jones, with alternative clothing producers increasingly competitive. Overall, M&S has achieved stability and influences the broader UK retail sector.

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Imon Kalyan Sarkar
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2K views3 pages

Porter's Five of M&S

Marks & Spencer, a leading British retailer established in 1894, faces several competitive forces according to Porter's Five Forces analysis. While buyers have strong bargaining power due to concentrated preferences and economic conditions, suppliers have weaker power as M&S sells many branded products. New entrance is difficult due to M&S's large size and understanding of the British market. Duplicate products pose a threat, but M&S has advantages in food and apparel. Main rivals are Waitrose in food and clothing retailers like Peter Jones, with alternative clothing producers increasingly competitive. Overall, M&S has achieved stability and influences the broader UK retail sector.

Uploaded by

Imon Kalyan Sarkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Porter’s Five forces analysis of Marks & Spencer

Introduction

Marks & Spencer, the leading British multinational retailer who is selling Quality Clothing,
Home products Food since years is also known as the economy indicator of UK. This company
was established in1894 by Michael Marks and Thomas Spencer. Being one of the best
departmental stores of entire UK, this company has faced many ups and downs and economic
turbulences which helped them to maintain the position.

Porter’s five forces

Bargaining power of Buyers

Bargaining power of the Buyers is high for M&S as they are more concentrated and can dictate
their taste. The economic slowdown of U.K (2008) have forced all the companies including
M&S to cut the price down and to focus more on what customers want.

Bargaining power of Suppliers

Bargaining power of Suppliers is comparatively low because M&S is now a huge brand and
there is plenty of sellers who are interested to enlist their name in order to reach more customers
and M&S is more intends to sell their own branded products. They only collect the raw materials
from the market and not the finished products. It results more profit for them.

Threat of new entrance

M&S is in advantage because the chance of new entries is very low as the company already has
become a huge company and the only way of new choice is to offer something out of the box
which is nearly impossible in apparel and food retailing. Being a British origin company, it
knows the mood of the market and it will be a barrier for any other foreign company to get into
the market. These big brands are already having the faith of the customers which helps them to
maintain their position where for a new company will take a lot of time to gain the faith.

Threat of Duplicate product


This can be a threat for them as there can be many first copy products in the market with cheaper
pricing which may affect the selling of M&S. Besides that, many other companies are selling
similar kind of products with less pricing and many buyers may choose them but in food and
apparel section there is a less worry about duplicate product.

Rivalry

Companies like Waitrose are now the main rival company for Marks & Spencer in food market
where Peter Jones and John Lewis are offering high quality apparel. Some other companies is
busy producing cheaper alternative clothes to get into the market. So the chance of Rivalry for
alternative is very high there.

Conclusion

After analyzing Porter’s five force, It is clear that there is as such no serious threat for the
company as it is now more stable and Marks& Spencer is now calls ‘bell-weather’ for the
retailing market of U.K . It means if this company is struggling, hard time is not very far for the
entire sector.
Reference

Arshed, N. and Pancholi, J., 2016. 9 Porter’s Five Forces. Enterprise and its Business
Environment.

Wu, G.C., Ding, J.H. and Chen, P.S., 2012. The effects of GSCM drivers and institutional
pressures on GSCM practices in Taiwan’s textile and apparel industry. International Journal of
Production Economics, 135(2), pp.618-636.

Fill, C. and Roper, S., 2012. Corporate reputation: brand and communication. Harlow: Pearson.

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