Supermarkets compared - Pricing Low to high pricing Quality of the product and customer service. Availability 24 hours a day, easy to get, in stock Market segmentation

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Task D

External influences are things that a business has to react to. These could be drops in share prices, prices going up for oil etc; the main areas of influence are competitors, Political/Legal/Economics and Environmental/ Social.

If competitors make their prices lower but still offer the same quality then its competitors have to react to this change and lower the prices as well and try to still give good quality. If a competitor opened more shops then the other business may have to open more stores in order to stop from loosing its customers.

If people consume more products are being made then the shop will loose out on sales and customers. If a company does something wrong then they may be taken to court this would be bad advertisement and they would want to keep it out of the public eye.

If socially people stopped shopping and instead they started driving more then the business would have to adapt to this new fashion to keep money coming in. If suddenly it changed back to clothes they would have to adapt back to clothes. If people became more eco-friendly then the business would have to become eco-friendly so as to keep it’s customers happy and keep them coming in.

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All of those affect other businesses by trying to increase market share. The areas this affect are:

Pricing – Low to high pricing

Quality – of the product and customer service.

Availability – 24 hours a day, easy to get, in stock

Market segmentation – businesses focusing on small segment instead of the whole market.

Marks And Spencer’s

Marks And Spencer’s competitors are located all around the country; Waitrose is Marks and Spencer’s main competitor. Other competitors are Tesco, John Lewis, Sainsbury’s, Debenhams, Next, Laura Ashley.

Waitrose – Their Pricing is low competitive prices and they do have ...

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The term 'External Influences' is described poorly. An external influence is any action that impacts on the business, which is outside of their control. For example the wages of their customers fall, thus the amount of money spent may reduce. The report does contain a number of spelling/grammar errors which should be corrected before submitted to the examiner.

The report states that Marks & Spencer's main competitor is Waitrose, although why is this the case, and not others? The report could include 'Marks & Spencer's and Waitrose supply food items of high quality for a reasonable price, although the price has an small 'premium' for the high quality of their products. Thus, Waitrose is their rival, as there promote/market their products to the same consumers. It's quite difficult to acquire these consumers, as there is almost always one other retailer wanting the sales of that target audience'. The student does state that there have 'low prices', although this isn't the case. The retailer does try to 'match' others, but there do not under cut their rivals and have cheaper products. They only 'match' prices.

In summary, the report is quite good. The report does state the processes that a number of retailers undertake. The student does link their academic understanding to their commercial understanding, which is a great aspect of the report. However some parts are lacking detail, and the student doesn't understand the case study of Waitrose, as clearly as She/He should. The student states that external factors could decease the share price. However this isn't too external. This is due to that the share price will increase/decrease based upon the businesses operations and how successful the business is. If the business were to undertake beneficial actions, there can allow the share price to become stable or increase/decrease. On the flip side, the student understands that if a competitor were to decrease their prices, this may attract consumers to their competitors. The business may have to decrease their own prices to 'price match' their rivals, and this may cause the business to loose profits.