Country, Industry and Competitor Analysis
This situation analysis focuses on the suitability of Marks and Spencer in Holland and the necessary factors the company has to take into account before venturing into this market. The market has several advantages which Marks and Spencer can tap into going by the level of success it has experienced in the UK. The company can focus on developing a clothing product line that appeals to young, urbane and career individuals who are not afraid to try out new concepts. These products can be for both sexes with special focus being given to individuals of the ages 15 to 50 of both genders who are conscious of how they look and how people perceive them through their manner of dressing. The majority of the country’s population are aged 25- 65 (Knijn, T., & Rijken, A., 2003, pp. 3-4).
This represents a good demographic range which the company can exploit to its advantage. The company can also explore the jewellery market within the country and try and tap into the demand for the goods among the upper class of the Dutch society (Euromonitor, 2010, p.3). Marks and Spencer can position itself to target a market consisting of demographics ranging from the ages of 15- 50 and develop a product line that meets the expectations of this demographic. The company should focus on producing clothes which can last both winter and summer for the targeted clients. This demographic represents the largest population in the country and they are likely to take up foreign concepts more easily (Hebig, 1997, p. 46).
The industry in Holland is dominated mainly by HEMA, Vroom& Dreesman, De Bijenkorf and Maison de Bonneterie. These companies have several branches across the country and they are likely to create competition for M&S once it sets up its operations within the country. The companies offer various products within their areas of specialisation targeting their demographics. V& D has over 62 department stores all over Holland with clothing being one of the items that are on offer in these stores. The company targets the mass market for its products as shown by the many branches it has all over the country. The clothing range for the company is designed to meet the requirements of people of all ages regardless of their age. The HEMA departmental stores number to more than 400 in Holland alone and similar to V&D the company has adopted the mass market model for selling its products (Euromonitor, 2010, p.3-7).
De Bijenkorf and Maison de Bonneterie are more specialised in their operations and they have their own specialised market segments which they target. De Bijenkorf target market consists of high end fashion targeting men and women who have a refined taste in fashion. The clothing range that is offered by this company targets clients who are urban and sophisticated who crave for a unique experience in the clothing they clad. More so, De Bijenkorf ‘s target clients is more sophisticated and targets higher end segment of the...