Premium Essay

M&S Case Study

In: Business and Management

Submitted By privettan
Words 2613
Pages 11
Quality for Money, Fashionable.
Parents used to shop there - historical.

Value proposition:

Traditional department store. Value achieved by technologists, selectrs to design y dedicatd suppliers. all sold under same brand. network of well located stores. powerfull functional group - food clothes. fabric with japanese houses to try o work towards easy care fabrics with customers in mind.
Fashion drove mns in 90s. industry influences customer choice.
Rsetless - ho can we improve, how can we move forward, what can we do better, how can we innovate.
Brand recognition.

M&S

1. Value proposition and how was it provided?

2. What went wrong?

Not tackling fundamental issues which were building up.
Didnt lose many customers but lost touch with them.
Over stock problem which led to heavy discounting, and didnt learn lesson as same thing happened again.
Firm was pretending that everything was ok and short term issue for too long which later came as a suprise when dividends were cut.
Competitors moved off shore, cheaper products of same quality and later even better quality. MNS had to take detail out of their product. Had to get Buying right as otherwise company couldnt recover. Suppliers tried to help as they were moving offshore but MNS didnt react fast enough. Didndt have fantastic product anymore.
Ignored innovation in food.
Lost direct command over the supply chain.

3. What is your assessment of Luc's approach?

Took advantage of people feeling sympothy, as even competitors asked how they can help and Luc had some good advise from different sources.

Fighting back. all 60000 of stuff were really motivated to fight back even though commercial results werent as expected.
Long term strategy - focus on fundamental strengths. Get rid of what wasnt needed. refocus on core activity in uk and core customer.
Create more effective balance

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