Competition by GAP and Loss of Confidence Marks and Spencers has suffered from

Competition by gap and loss of confidence marks and

This preview shows page 6 - 8 out of 20 pages.

Competition by GAP and Loss of ConfidenceMarks and Spencer's has suffered from stiff competition by US retailers, such as Gap, muscling in on the UK market. This has reduced the demand for Marks and Spencer's products. The competition has gained the demand that Marks and Spencer's has lost. The clothes that the company sells have been condemned by fashion critics as downy and uninspired. This has made the company feel as if they have lost the confidence of their customers, which has lead to their decline as a company. This is one of the reasons why Marks and Spencer's has lost its demand to its competition.
More Losses of Profit due to expenses on researchMarks and Spencer before the loose in profits had been expanding in the UK by increasing the amount of stores they had and pouching back money into the business by using Market Research to help guide them. This was a bad move as they were losing profits they were also using money to expand in the UK which made them loose even more profit. This huge loss in profit forced Marks andSpencer's to cut down on an investment and its also lead to reduce the number of employees. Slow to e-commerce which offered the competitors the Upper hand (Culture – Reluctant to Change)Marks and Spencer's was also slow to join the internet shopping revolution, which made its competitors gain some competitive advantage. They were also reluctant in accepting credit cards which made its profits suffer even more. Marks and Spencer's may have been reluctant to changeas its corporate culture, which would not allow it to change with trend. Businesses are always under constant pressure to change, both internally (management and shareholders) and externally (in the market place). Marks and Spencer's was slow to change internally and externally. They did not keep up with fashion and trends (EVEN IN THE PRODUCT LINE)which lost them much of their market share. An example of this would be the introduction of the grey clothes which they had all over the shop floor and as a result, not many people were interested as this was not the trend at that time. Marks and Spencer never took their initiative to listen to their customers and that was part of their downfall as a company. Marks and Spencer's has always been associated with quality, which adds value to all their products and services. This should give them a competitive advantage, but they lost it as their products weren’t thought of as fashionable products anymore. Competitive Advantage through Cost-LeadershipCompetitive advantage is the idea there are many other businesses in the same market as you, and to gain more customers you need to do something that is different and better than your rivals i.e. offer them a choice to make on your quality products and keep up with the trend of that time.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture