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Characteristics of Market

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Submitted By metarin
Words 944
Pages 4
Characteristics of the Market where Marks & Spencer Operate Their Business
Marks & Spencer is a retail organization and their main business is to sell necessary commodities to customers through their super shops in home and abroad. Retail organizations are emerging with new product and facilities day by day. It becomes a competitive business sectors in UK. Retail business are seem to be profitable than other business as a result many people are found to be interested to invest in the retail business. To establish in this competitive business retail organizations need to provide quality products below reasonable price. This thing is a major thread for marks and Spencer. Simultaneously there are many competitors of Marks & Spencer such as Tesco, Sainsbury, Asda etc which are trying to beat it with their service. In the porters five forces of competitive advantage threat of new entrants is a significant thing what is being faced by Marks & Spencer.
Porter’s second factor of competitive advantage is substitution of product. This factor is one of the important characteristics of the market where Marks & Spencer operate their business. Substitution is an effective strategy to survive in this competitive market and customers are also willing to buy substituted product. Relative price and quality of substitute product attract consumers.
In retail business organizations hardly goes for production but they need to buy finished product what is considered as their raw materials. The costs of raw materials have a significant impact on the profitability of any types of industry. Supplier’s high bargaining power over a company makes that company less attractive. If there are many buyers and few suppliers in market potential advantages generally goes to the favor of supplier. If there is no specified procedures for identifying appropriate price of appropriate product.
Marks & Spencer is the buyer of the finished product to retail this to the customer. As retail business so much competitive so there is little chance to make huge bargaining. As a result Marks and Spencer has few chances to make huge bargaining in the case of buying a product.
According to the above mentioned marketing condition Marks and Spencer is operating business. In the end we have found that marketing condition where Marks and Spencer operates there business is highly similar with the porters five factors of competitive advantage.
Recommendation
To make profit Marks & Spencer should adjust the performance of their product according to the new substitution to their product. Their product and relative performance also needs to be developed according to the competitor’s product.
Marks & Spencer should have bargaining power over their suppliers. With the fewer price they can buy a product their cost will be reduced accordingly.
Marks & Spencer should preserve customer data very confidentially and use this with the consent of that specific customer.
In their web-site there should be proper arrangement for customer to open account and be updated about their product.
Marks and Spencer can include credit point system to evaluate their customers buying behavior. They can arrange more facility for potential customers.
They need to establish a centrally controlled computer based sever network to monitor the performance of territorial branches as well as the branches situated outside of the UK.
To operate any kind of business huge amount of energy is required what results huge carbon dioxide emission. Marks and Spencer also emitted huge amount of carbon dioxide what is harmful for environment, they have include appropriate technology to reduce carbon dioxide emission.
Marks and Spencer had to make agreement with different organizations to maintain their technology and include new technology at the time of requirement. They should have a different organization responsible for only technological support.

Conclusion
Marks and Spencer has been providing high quality great valued clothing and all kinds of home products to their customers and also employed around 78,000 employees across the UK and 42 territories globally. It has 703 stores across the UK in high streets and retail parks as well as stations, airports and other locations. Where Marks & Spencer operate their business there are many competition exists as well as many business strategies. providing corporations with an analysis of their competition and determining strategy, Porter's five-forces model looks at the strength of five distinct competitive forces, which, when taken together, determine long-term profitability and competition. Such as, new entrance of new competitors, substitution of existing product, bargaining power of both the supplier and buyer lastly the degree of rivalry between existing competitors. Marks and Spencer has been facing all of these problems where they are operating business. There much new retail business entity is entering to the business very rapidly what makes this business very competitive. Bargaining power of both buyer and seller has significant impact on the business. To overcome these types of situation Marks & Spencer has taken many initiatives including technological facilities. Technological system includes Project Monitoring and Control System, Location Central control centre, Energy analysis consultancy, Control systems Resource, Data Management systems consultancy Matrix, Control Solution Metering and data collection, Data serve Project Control and monitoring system.

(www.hemscott.com) (www.quickmba.com)
(www.businessballs.com)
(www.valuebasedmanagement.net)
(www.power-technology.com)
(corporate.marksandspencer.com)

(corporate.marksandspencer.com)
(www.hemscott.com)
(annualreport.marksandspencer.com)
(www.quickmba.com)
(www.businessballs.com)
(www.valuebasedmanagement.net)
(www.power-technology.com)
(corporate.marksandspencer.com)
(David Campbell, Jim Hamill and Tony Purdie ,2008)

(corporate.marksandspencer.com)
(www.hemscott.com)
(annualreport.marksandspencer.com)
(www.quickmba.com)
(www.businessballs.com)
(www.valuebasedmanagement.net)
(www.power-technology.com)
(corporate.marksandspencer.com)
(Hermann Simon, 2010)
(Arnoldo c. hax & dean L. Wilde, 2009)
David Campbell, Jim Hamill and Tony Purdie (2008)

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