The internationalization of Marks & Spencer
Étude de cas : The internationalization of Marks & Spencer. Recherche parmi 300 000+ dissertationsPar dissertation • 6 Décembre 2012 • Étude de cas • 342 Mots (2 Pages) • 1 024 Vues
This case study describes the internationalization of Marks & Spencer (M&S), a
giant British retailer. In recent years, the company has suffered a series of
misfortunes, both at home (Britain) and abroad. Company sales have dropped,
stock prices and market capitalization were substantially reduced, and overseas
profits have declined. In January 1999, following a terrible earning
announcement, the company announced that it had formed a marketing
department, forcing the company to become more proactive and market
driven. To head the department, M&S promoted James Benfield, a 17 year
veteran of the retailing giant who worked as a former head of menswear, home
furnishings, and direct mail.
For years, M&S’ marketing philosophy was simple: produce high quality products
under a recognized brand name at affordable (but not cheap) prices, and
advertise through word-of-mouth. However, in recent years, this marketing
philosophy has come under attack as the company started loosing its
competitive stance. The move to develop a marketing department was a
departure from a long tradition of production/manufacturing emphasis. The
problem facing James Benfield: how can M&S emerge from the slump and
reposition itself as a fierce global competitor in the international marketplace?
Marks and Spencer of Britain (often referred to as Marks & Sparks by locals) is a
general retailer that sells clothes, gifts, home furnishings, and foods under the St.
Michael trademark in the UK, Europe, the Americas and Far East. The company
also operates financial services segment, which accounted for about 3% of the
company’s 1998 profits (Dow Jones Industrial 1999).
Marks & Spencer (M&S) started as a stall in 1884 by Michael Marks in the Leads
market using a L5 loan from a wholesaler. The company stressed value and low
prices as a hallmark for development. By 1901, the company acquired 35 outlets
as well as a new partner, Tom Spencer. By 1949 all the company’s stores carried
mostly private label (St. Michael) products produced by British suppliers (De Nardi-
Cole 1998).
For many years the company’s mission has been to offer consumers quality, value,
and service. The company relied on five operating principles to achieve its
mission:
(1) Developing
...