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M&S Five forces model

Analysis of the Porter's five forces model for Mark&Spencer

Javier Albert Sánchez

on 9 October 2012

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Transcript of M&S Five forces model

Porter's 5 forces model It's necessary to distinguish:

- Low power of suppliers in terms of food and clothes
- Higher power regarding to specialized or technical products. SUPPLIERS Rivalry - No major competitors that gives exactly the same service as they do.
- However, its segments are individually much more susceptible to competition. SUBSTITUTES - Other premium products from other department stores
- Nonetheless, anyone else offers the same level of quality for such a reasonable price. BUYERS - Large loyal customer base by the people who uses its credit card and loyalty card.
- Easy for customers to buy in other retailers
→ Even considered better quality than others (Tesco), these are coming with premium lines, and might be even more competitive in prices. BARRIERS TO ENTRY - Difficult market to enter as has long heritage and well established house hold name in UK
→ The name is well regarded and in general it means assured quality

- Advantage of economic of scales CONCLUSION
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