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Marks & Spencer Resources, Capabilities & Competitive Advantage

5304 words - 22 pages

Marks & SpencerResources, Capabilities & Competitive AdvantageCompiled for Paull Robathan.Author: Kerry SheehanMonday, 02 February 20041EXECUTIVE SUMMARYIn the period up until the mid 1990's M&S had a market leading share of the clothing market. They used their resources and subsequent capabilities to exploit their differences from the competitors and create competitive advantage by:*Empowering suppliers/manufacturers with design responsibility*Closely managing supplier relationships*Brand management*Excellent customer service*Excellent working conditions*Their BritishnessThrough these unique policies they created CA and profitable growth.Richard Greenbury become Chair man and ...view middle of the document...

6Sources of Competitive Advantage83.6.1First Mover Advantage:93.6.2Reputation:93.6.3Finance93.6.4People93.7Value Chain103.7.1M&S Value Chain Key Strengths:104Part A Summary115Part B125.1Identifying Greenbury's Strategies125.1.1Measuring Success125.2Strategic Analysis:135.2.1The External Environment:135.2.2The Competitive Environment145.3Resources & Capabilities145.4Strategic Choice155.5Stakeholder expectations165.6Strategic Recipes165.7Strategic Implementation176Part Bi Summary177Strategic Objectives for Luc Vendervelde188Part BII SUMMARY229References.2310Appendices242INTRODUCTIONPart A of this report examines the resources and capabilities of Marks & Spencer (M&S) up to the mid 1990's and how they lead to creating a superior competitive advantage (CA) over all competitors.This CA resulted in superior market-share, profitability and perception in the public eye.Predominantly M&S are known as a clothing retailer but has grown organically into food and furnishings but, market watchers tend to judge their performance on the ability to maintain their market-share in clothing.Part B evaluates the strategies of Richard Greenbury during his Chairmanship up to 2000. It also examines how these strategies were implemented.This report concludes with the strategic priorities that the new Chairman should prioritise on.2.1THE CLOTHING MARKETKey events in M&S history are listed in appendix item 1.In 2002 the UK clothing retail market was worth £27 billion~ with the top 10 retailers making up over 40% of the total.M&S were still the number one retailer in the UK by a good margin yet their share had been falling (Deutsche Bank 2002) .Retailers such as Next and Arcadia had taken market share from M&S but share was also being eroded by 'new' competitors such as Asda and Tesco.3PART A3.1RESOURCESResources and capabilities internal to the organisation are the main vehicle for achieving superior performance (Grant, 2002, chp 5).As an internationally-renowned retailer, M&S owned or accessed a vast number of resources by the mid-1990's.The key resources relevant to the organisation's capabilities have been classified below:TangibleIntangibleHumanFinancial*Triple 'A' rating by Standard & Poor*Strong historical results*High Share price*Ownership of premium, centrally located retail sites*Cost of stock carried by supplierTechnological*Virtual R&D facilities*Technical employees* Significant expertise in fabric technology*Collaborative partnerships for developing new productsSkills / Know-How*Quality training practices*Share knowledge throughout supply chainPhysical*373 UK stores*250+ Global stores*Acquisition of Brooks Brothers & King SupermarketsReputation*Classically British*Quality, Value & Service*Trademark*Brand - trust very high, defined standard of excellence, reputation for quality*Long term & close supplier relationships*Reputation as conservative, but actually innovative.*Attracted & retained...

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