What are the main points learned:
Here it can be seen the notes that I made that seemed to lead to M&S’s decline in market domination. It is under this heading as these are the main points that I learnt about the company that were not known by me before.
Seems that M+S Pushed customer away
M+S had a Captive market
Record breaking profit for 1998 in clothing
The autumn clothing line was poor quality, all grey
M+S had a strong customer loyalty
The poor service was due to the lack of store staff within the branches.
M+S are having brilliant success so they branch into the financial sector.
Next range of clothing talked about classic products, wearable fashion but not cutting edge. Head of fashion for M+S did not think this was a good idea but Richard Greenbury was not one to cross, it was his way or, well his way.
It seemed that M+S were doing the right thing at the time but not considering the future, like the high competitive rate to enter the clothing retail market.
Many board members and managers within M+S were reluctant to criticise the ideas of the then current CEO.
Sales dropped 4% when the child clothing range was discontinued in small clothing; an idea of Greenbury’s that not many agreed with.
When Richard Greenbury (CEO) visited stores the managers were told not to mention the above slump caused by the child clothing line.
High profits came year in and year out in 1998.
71% in November 98
62% in March 98
The company was trying to be too efficient by bulk buying the clothing range, which was not a smart move when selling clothing, as this is an ever changing market where consumer tastes are easily swayed by celebrities and other endorsements.
In the year of 1999 Richard Greenbury resigns as CEO of M+S.
The company now accepts the use of major credit cards and uses a paradox for their slogan
“Exclusively for everyone”
