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Value Chain Analysis – Marks & Spencer The value chain analysis singles out the set of specific activities practiced by a company that can create competitive advantage over the rival firms in the sector. Following value chain analysis shows to get a better understanding of the activities through which M&S develops a competitive advantage and create a shareholder value. Primary ActivitiesInbound LogisticsOperationOutbound LogisticsMarketing and SalesServicesProcurementHuman Resource ManagementInfrastructure Technological DevelopmentThe Value ChainSupport ActivitiesValue Chain Analysis Diagram
Primary ActivitiesInbound logisticsMarks and Spencer has launched warehouse consolidation programme. M&S opened its new warehouse in Bradford which combined all of its food suppliers from four centres into one site. Also, building a second new warehouse in the East Midlands which will provide e-commerce facility along with National Distribution Centre. These make it greater control over the supply chain.At the stage of inbound logistics M&S keeps to absolute transparency about the origin of input materials and products. The company starts to build its supply chain choosing reliable suppliers and quality production. During the inventory control replenishment is fulfilled very fast. • OperationsHere the activities associated with manufacturing process and assembling are implied. M&S practice the so-called smart packaging technologies that enable to preserve the quality and safety of the distributed food products. Besides, smart packaging provides convenience for customers and strong brand associations.M&S established wide ranges of sub-brand based on better and best quality products to satisfy customer needs. For the food business, M&S launched in-store bakery to deliver freshness of products to customers. In addition, M&S modernised its stores in order to improve the atmosphere in the store and make more inspiring shopping environment.• Outbound logisticsM&S has a variety of channel operations, which provide a flexible range of order and delivery options. M&S gave extra convenience service for online shopping by offering next day delivery options.Multi-User Warehouse System (MUWS) was chosen to be the mainframe-bases system of warehousemanagement in Marks and Spencer. The information about availability and delivery of goods is communicated to stores and warehouses automatically. The volume of the production delivered to retail stores is previously forecasted.• Marketing and salesM&S offers many of high impact promotions. For example, Dine In for £10 continued to increase in popularity. The promotional campaign provides greater value to customers and also gains competitiveness against competitions. The company also invested in advertising in newspapers and magazines.
M&S tends to popularise its brands putting the stress on the exclusiveness of goods and especially underlining the idea of “Britishness”. The company applies various advertising techniques predominantly relying on traditional tools such as outdoor, print, TV and the Internet. A new