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HAMBRICK MODEL FOR MARKS & SPENCERS

1) ARENAS:
1. Product Category:
a) Clothing market
b) Footwear market
c) Food market
2. Product Range
a)
b)
c)
d)
e)

Womens clothing , including shoes and accessories


Mens Clothing
Kids
Lingerie
Food and wine

3. Market segment
Middle Class consumers
4. Geographical area
Worldwide across 41countries with 337 stores

2) Vehicles:
a)
b)
c)
d)

Joint Ventures
Organic growth
Franchise Agreements
Acquistions

3) Differentiator
a)
b)
c)
d)
e)

Global Brand Image


Unique and customized products catering to need of different groups and cultures
Catering to men ,women and kids
Environmentally sustainable business while reducing costs
High product quality

4) Staging
a) Moving from domestic market to international markets as soon as domestic market
saturates.
b) Have two management teams- One for UK and other for International market

5) Economic Logic
a) Internationalization
b) Outsourcing cheaper raw materials from countries like India, Pakistan, Vietnam China

2) TOWS ANALYSIS

THREATS

OPPURTUNITIES

STRENGTHS
1) High Product quality
2) Strong domestic
consumer base
3) Customized products
catering to different
segments
4) Strong Brand image,
trading for more than
100 years

WEAKNESS
1) Lack of marketing
research
2) Poor inventory control
3) High prices compared
to competitors
4) Clothing style not
focusing on young
customers
5) Failed to expand in
countries like France,
USA and Canada
6) Lack of Brand
awareness in Asian
countries

1) Expansion in Ecommerce
2) Segmentation and
targeting on basis of age
group
3) Expansion in various
product categories like
grocery
4) Differentiate in terms
of corporate social
responsibility
5) Store image makeover

(SO) strategy
1) Further penetration of
market using internet
2) Customized products
for different age groups
3) Expansion in grocery
market by making use of
their brand image and
product quality
4) Innovative CSR
initiatives to strengthen
brand image

(WO) strategy
1) Formulating STP
strategy by proper
marketing research
2) Robust inventory
management to handle
products like grocery
3) Improving store image
in countries like Canada
to expand

1) Strong competition
from other fashion retail
stores
2) Global financial crisis
3) Threat of new entrants
4) Threat of losing
younger audience while
catering to older
segment

(ST) strategy
1) More trendy and
fashionable products in
comparison to
competitors
2) Low prices while
offering discounts and
offer to deal with
financial crisis

(WT) strategy
1) Offering trendy clothes
to attract young
customers
2) Counter the new
entrants by offering
customized clothing

Strategies for improving business in China

Understanding the Chinese market


Learning from past mistakes ,for example, Chinese body frames tend to be
smaller than western body frames and hence design the clothes
accordingly
Through extensive market research in different cities of China and
research targeted at understanding Chinese consumer more.
Chinese consumer is very much different from western consumer as is
evident from comparison of Hofstedes cultural dimension in exhibit 4
Middle class consumers want more designer label rather than umbrella
brand like M& S
Understanding the competitors like Zara, H&M, Uniqlo and also new
entrants.

1. Product

Adaptation of products to local Chinese market is of prime importance


because Chinese culture is way different from Western as is evident from
the comparison of Hofstedes cultural dimensions.
Secondly, the perception of Chinese consumers such as the M&S clothing
was directed to 40-50 years old middle age men and women, that needs
to be changed.
Create brand awareness of the Ma Sha Bai Tho (The M&S Chinese brand)

2. Price

The major problem with the pricing is that while M&S aims to provide
quality goods at low prices but their price proposition in China was far
beyond the reach of a middle class Chinese.
Secondly, the prices need to be adjusted to match the income bracket of
the Chinese people. For this M&S should source more materials from
locals.
Thirdly, the company should remove the price imbalance prevalent in its
products range.

3. Place

Since China is the worlds largest market for grocery, the company should
open food only format of its stores in China and each at convenient
location, targeting the densely located areas all the more

4. Promotion

Promotional material should be adapted to Chinese market so that


consumers can better understand the products and Brand as a whole.
Adaptation can be done by featuring Chinese models alongside Western
models.

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