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Running head:MARKS AND SPENCER1Marks and Spencer Case StudyName:
MARKS AND SPENCER2Marks and Spencer Case StudyMarks and Spencer (M&S) is a multinational retail company which deals in clothing, home items as well as food products. The company has over nine hundred and seventy outlets in the United Kingdom as well as four hundred and fifty-four other stores globally. M&S became a global giant in the fashions industry for decades. However, the current changes in the retail sector have affected the company drastically. Factors Affecting Demand for M&S Products. The global merging of economies around the world gave the company an opportunity for growth. However, several factors affect the demand for Marks and Spencer products. These include:Income levels-Consumers purchase products depending on their income levels. Also, a leading retail company, Marks, and Spencer have a broad customer base (Kumar &Reinartz, 2011). The retail sector in the United Kingdom is sensitive to the dynamic changes in interest rates. After theeconomic struggles in 2009, the economy has regained its system. As a result, a majority of the consumers are in a position to purchase more items than before.Customer choices and preferences- According to Kumar and Reinartz (2011), over the last couple of years, consumer tastes and preferences have changed. United Kingdom consumers grow interested towards a specific brand. The quality of M&s products has enabled the company to gain a good market share since consumers believe in the value of their money. Product prices-M&S uses the competitive pricing plan. The company’s house brands have prices that start from medium to high depending on the level of its quality. The competitive pricing strategy also allows the company to produce various products enabling them to withstandcompetition (Kumar &Reinartz, 2011). Besides, the company uses the dynamic pricing strategy occasionally giving the company to attract more customers by offering discounts. Competition- Despite its excellent market share, the retail industry in the UK is quite competitive. Marks and Spencer face intense competition from well-established companies such as GAP and Next (Deneckere & Peck, 2012).Fashion trends-Marks and Spencer offers clothing and apparels, food and home appliances as part of their company products. The changing consumer demands for more fashionable clothes increases the variety of products that the company has to produce (Kumar &Reinartz, 2011).Weaknesses and Threats on Demand Side of M&SMarks and Spencer have several strengths when it comes to consumer demand. However,the company also faces a set of controllable and uncontrollable weaknesses and threats when it
MARKS AND SPENCER3comes to the level of customer demand for its products (Deneckere & Peck, 2012). These include:Outdated business model-One of the principal faults of M&S on the demand side is an obsolete system of organizational governance and resource control. As much as business