Marks & Spencer Resources, Capabilities & Competitive Advantage

Marks & Spencer Resources, Capabilities & Competitive Advantage Compiled for Paull Robathan. Author: Kerry Sheehan Monday, 02 February 2004 1EXECUTIVE SUMMARY In the period up until the mid 1990's M&S had a market leading share of the clothing market. They used their resources and subsequent capabilities to exploit their differences from the competitors and create competitive advantage by: *Empowering suppliers/manufacturers with design responsibility *Closely managing supplier relationships *Brand management *Excellent customer service *Excellent working …

…years enjoyed virtual monopoly position on the high street. Sunk costsPrior investment in freehold properties provided premium retail sites at minimal costs relative to competitors. ExclusivityUniqueness of supply chain and positioning as trusted and valued retailer provided significant repeat sales opportunities. 7. M&S turnover figures (Bevan) £m19951996199719981999200020012002 Pre-tax Profits92496611021168628557613533 Sales68077211784283438224819688199118 No. Stores (UK)283284286294294300302307 Market Share (clothing)1313.41311.410.510.169.46 Data source: Bevan, 2001, p.249. Forecast figures to 2002. 8. FAHEY & NARAHAN'S Step Analysis : 1990 9.Sigmoid Curve 10.Argenti's model 11. Strategic Drift