M&S Report - To find the reasons why M&S failed initially in its internationalization process and how it can succeed in spreading the brand overseas now.

Authors Avatar by clandestineaffinitygmailcom (student)

   

 BACKGROUND

Marks & Spencer ( M&S) , popularly known as Marks & Sparks ,  one of the leading  retailers in UK began internationalizing in early 70s with formal store based operations in Canada and so on and so forth. However  , On 29 March 2001, Marks and Spencer (M&S) announced that it was to sell its Brooks Brothers clothing chain (USA and Japan) and Kings supermarkets (USA) businesses, and turn its company-owned stores in Hong Kong into a franchise. In addition, it was going to close most of its company-owned continental European stores, viewing them as ‘distractions’ in its quest to restore its fortunes . A wave of protests across continental Europe about the closures and job losses was the result.

                                             

       

CURRENT SCENARIO

M&S decided to shut down or sell any assets which get in their way of the UK recovery.The adopted a strategy of total focus on UK retail,improving returns to the shareholders and increasing the leverage and earning potential of the business.However, around a decade after their exits and European sell off , M&S have started intenationalising again with opening up of stores in China,India,Dubai and also planning to buy back the European stores.

PROBLEM STATEMENT / AREA OF OPPORTUNITY DEFINED

To find the reasons why M&S failed initially in its internationalization process and how it can succeed in spreading the brand overseas now.

Basically performing a GAP analysis , PESTEL analysis combined with the reasons for failure to recommend  the implementation strategy for M&S to go international.

GAP ANALYSIS

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PESTEL ANALYSIS OF M&S

Here is an analysis of the external factors that affect M&S’s performance

POLITICAL: Governmental policies revised to safeguard the primary business streets of the cities have made the out of town developments extremely difficult., also its extremely expensive for retail centres to be in the centre of large towns and cities. Also UK not having the Euro is a liability in European markets as they are being sold at UK price.International markets providing more assistance & friendly norms are more attractive than ever.

ECONOMIC: The UK currency being stronger to other currencies works ...

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