Internal Capabilities of a Company - Strategic Management - Essay Example

Introduction Marks & Spencer is a globally reputed retailer based in UK. It is one of the many well established retailers in the UK area with over 21 million people visiting the regional stores of Marks and Spencer on a weekly basis. The unique selling proposition or the USP of Marks & Spencer stores are that they offer products which are high on style and also have a high quality. The chain, in an effort to maintain quality, sources the products, mainly foods from a global pool of huge number of suppliers, approximately 2000 in number.

As of today’s status, Marks and Spencer has presence all over the globe with an impressive store count of 700. In the UK market, Marks & Spencer is the leading player for women clothing and accessories. The clothing segment sales generally accounts for around 49% of the business handled by Marks and Spencer, while the remaining 51% is generated from the food segment, which comprises of a wide range of products ranging from farm fresh organic produce to partly and fully prepared and packed meals (Marks & Spencer 2012).

In an effort to play a leading role in the worldwide green initiative, the chain is focusing on reducing wastage that is generated from handling and packaging of food items (Marks & Spencer-a 2012). Analysis and Findings The analysis and findings would hint on analyzing the internal environment of the business based on two specific models-the SWOT Matrix and the Value Chain Analysis study. Internal Environment Analysis SWOT Analysis Strengths Brand Identity: The most important strength of the retail chain Marks & Spencer is its brand identity.

It is the single most supreme asset that the retail chain possesses in the current times. As an effort, to develop the brand further in the UK market, and as an effort to build customer recall for the brand, the brand invested heavily in a branding program in the late 2010. Named as ‘Only At Your M&S’, the branding program highlighted the highly innovative and quality products offered by Marks & Spencer to its customers all the time, by keeping pace with the changing patterns of the retail industry and its related products.

As an upshot to this marketing response, the consumers gave a massive positive response, leading to boosting of sales in the year 2011 (Marks & Spencer 2011). Clothing Segment: Marks & Spencer is leading the UK market in the clothing sector and has also successfully increased their market share as compared to the previous year. The increase in market share was attributed to the offering of quality products with respect to the current trend and customer choice. Clothing Segment: In an effort to serve the consumers better, the clothing segment is reorganizing itself by segmenting the stores, with regards to the local demographics.

In future, this strategy will generate a positive response among the consumers, as the retail chain is focusing on providing the optimal and exact product mix as desired by consumers of various locations, and thereby increasing customer convenience and customer satisfaction. Food Segment: Better waste management in the food division, has helped the retail chain to reduce the cost of its products, while at the same time providing better margins on its food products (Marks & Spencer