Founded in 1884, Marks & Spencer is a company that is more than two centuries old. The origin of its fame and development comes from a very particular situation experienced in England in the late 19th century. Soon after, M & S has positioned itself as a solid reference on the clothing market in England.
Recognizing this success and aspiring to a larger development, the leaders of the time wanted to apply the concept of department stores for their business, while retaining the concept of industrial know-how in their ranges. Today, M & S is facing a decline in sales of clothes scouring due to poor compatibility between its production and market requirements.
On the other hand, Inditex is much more recent. The first Zara store brand was born in 1975 in Spain. The mindset of its leaders is very innovative and seems well suited to market requirements. This was followed by rapid turnover and lower prices. This spirit is reflected throughout the production structure of the brand. Indeed, leaders are developing a value chain efficiently, quickly and without bureaucracy. Today, Zara is a leading brand in the European market for clothing.
One of the strengths of the strategy for M & S is probablyinternationalization. Indeed, in 1972, the brand sets out to conquerworld markets. In Canada, at first, then the United States, Europe and Asia. Presence on four continents gives M & S some renown.Experts agree on the fact that the brand takes a brilliant strategy, which earned him several awards. Furthermore, this international presence gives M & S readability worldwide.
For its part, Inditex has also thought about "international". Emergingin the context of globalization, the company has exported to the occasion and quickly a few years of its establishment. The company is present worldwide and particularly through its flagship brand: Zara
Inditex has set up an organization from its inception, a logistics system and a tailored value chain and be able to renew almost all of the lines every 2 weeks. However, the organization of classical and heavy M & S did not follow this trend. Value chain of M & S is only able to provide only two collections a year.
All these information for Marks & Spencer and Zara reveals a gap between the current market requirements and the internal organization of Marks & Spencer. At present, the clothing market, is characterized by three forces: the first is clearly a trend-oriented mindset "sport". The second is the acceleration of life cycles of fashion and finally worldwide distribution.
However, the study of "business model" of Marks & Spencer does not seem to be able to meet these criteria. Particularly in regard to adaptation to life cycles of fashion. Indeed, the value chain Marks &Spencer follow an organization "classic", "traditional" and rigid,inherited from the past century.
Consequently, the solution to the decline of Marks & Spencer is in the "modernization" of the business model without changing the image(quality, classic style for the general public) and brand positioning.
The solution for M&S is a change in the business model without affecting the image. It will therefore make the stores more pleasant places of sales, more accessible in order to make the purchase experience pleasant.In sum, we believe that the implementation of all these proposals may end the current situation of M & S.
Tags: Marks and Spencer, Zara, comparison of processes in clothing industry
[...] Since its inception, the company has been working on two markets at once: The clothing market and the food market. This diversification was accentuated when leaders wanted to expand their products particularly through a range of furniture, marked by the launch of a catalog for Home Furnishings. M & S is no longer really a specialist operating through a large store, but rather a store where you can find everything. On their part, Inditex and Zara have adopted a very different behavior. [...]
[...] This should especially encourage India and China, to the detriment of the poorest countries, such as Bangladesh, which they had initially supported. Brief History: • 1974 signature brand MFA which introduced the principle of import quotas that Western countries attribute to developing countries to ensure their opportunities in their markets. • 1994 Member of the six regions World Trade Organization (WTO) are still using these quotas: the United States, Canada, the European Union, Norway, Sweden and Austria (since joined the EU). [...]
[...] The Zara model for example is quite interesting. Indeed, their intranet system enables high-performance real-time collective management of the entire chain. All shops work together (collective management of stocks), transfer sales figures and remarks of customers. This type of system gives complete flexibility and Zara gives optimum satisfaction of the clients. Next, we consider that it interesting to work on the merchandising sales of premises. Obviously, it is not to make Zara, pretend to be trendy places as compared to M & S stores. [...]
[...] Today, Zara is a leading brand in the European market for clothing. • A shared commitment to internationalization . One of the strengths of the strategy of M & S is probably internationalization. Indeed, in 1972, the brand set out to conquer global markets. The process was initiated in Canada first, then the United States, Europe and Asia. Presence on four continents gives M & S a lot of fame. Experts agree on the fact that the brand takes a brilliant strategy, which has earned it several awards. [...]
[...] Another weak point in M & S products their aging customers and poor sales abroad; in fact, the market share of M & S in UK is 24% among 65 year olds against only among 15-24 year olds and the company generates almost all of its operating income in the country of origin ( 472.7 million pounds against 34.5 million overseas in 2000). In 1999 it had only 28 stores abroad against 294 in the UK. Marks & Spencer despite its difficulties in adapting to new requirements arising from globalization is the leading company of clothing in the UK. However, it is losing ground, its domestic market share rose from in 1999 to in 2000. Production) This is for the core problem of the British brand. [...]
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