Evaluation Essay

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ASSIGNMENT 3 – WRITTEN INDIVIDUAL ASSIGNMENT (MARK AND SPENCER) 1. Analyze the five forces acting on Marks and Spencer. Identify the element that appears to bring the greatest threat to the company. Nowadays, there are many new high street stores entrants such as Top Shop in this clothing industry which create several threats to existing competitors as they may bring new technology which are not available to current traditional clothing retailers. Competitors such as supermarkets namely ASDA have operated successfully in introducing attractive and acceptable quality clothing range into their operations to achieve scale of economies with other businesses. It is obvious that the decreasing level of customers’ loyalty owing to the confusion and disappointment has resulted in higher degrees of competition. The losses of understandings in customers’ needs reduce the sales of the company. This is because the main concern of supermarkets such as Selfridges is on low cost clothing whereas Marks and Spencer have trailed a different strategy which is to maintain competitive position in luxury products (Business Teacher, n.d). Therefore, the level of new entrants is high. The main fact of substitute products is performing the same function as the product of the industry (Swathen, 2010). For Marks and Spencer, their substitute products are available at many places such as supermarkets, convenience shops and others. Hence, the substitute level of Marks and Spencer is high. Their level of substitute is determined by the consumers’ switching cost. For instance, Marks and Spencer launched their own school uniforms in the early 1950s, however there is many other local clothes shops selling moderate quality basic school uniforms but with a lower price compared with Marks and Spencer which cause customers to easily switch from this brand to its substitutes brands. The threat

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