Different Positioning Tactics Used to Maintain Competitive Advantage

TASK

Competitive advantage: Every organization requires adequate funds, materials, and manpower to execute appropriate business activities. The administration must have skilled and competent people who help M&S deliver quality things and quick services to customers. Along with this, the latest tools and technologies, such as internet benefits management, help to maintain records of consumers and keep proper track of items. This advantage allows the company to attract customers by giving them creative and innovative things.

Management frames policies and uses appropriate strategies concerning pricing, promotion, distribution, and product, which help M&S to enhance its reputation and goodwill concerning rival firms that are Tesco, Aldi, Asda, and Wal-Mart. These are various aspects that are identified by senior to improve position and are stated below (Barney, 2012):

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Human resources: The employer's responsibility is to conduct recruitment, selection, compensation, training, and development activities. M&S must have adequate manpower, which helps management execute appropriate business operations. This helps seniors deliver adequate items and services in the market according to the tastes and preferences of people. Meetings and conferences are organized by human resources to inform staff members about the environment, system, products, and market conditions. Along this, seminars and sessions are executed to improve the skills and abilities of employees, thereby delivering quality things and quick services to customers. This helps the company to increase market reach and customer base, which benefits management by enhancing sales and revenue.

Supply chain: In M&S, the administration maintains relations with suppliers to have adequate products available in store. With the use of the internet, appropriate information is maintained by seniors about different varieties of items. This helps management order products and have an appropriate amount of goods in store.

Brand values: M&S has a strong image and reputation in the market, which helps the administration attract a large number of people. Different varieties of home products, clothes, food, and various luxury things are delivered by the company. This helps management position the firm higher than competitors (Campbell, Coff, and Kryscynski, 2012.).

Marketing: M&S provides different things, such as food and clothes, to have a large customer base. Along with this, pricing and promotion strategies are used by management to attract people by informing them about items and services. Sales promotion, online advertising, publicity, and various other promotion techniques. These are used by firms to provide information to the public about modifications and changes in products that are made by management.

Pricing: M&S provides quality and luxury items, which are determined by management concerning products and their components. High prices are fixed for each product, which is due to the type and quality of things. This creates problems for firms to have large and medium customer bases. Thus, management has a smaller number of people, which impacts sales and profitability (Gomez et. al., 2014).

Porter's five forces model of M&S: 

This is a holistic theory, which defines strategic decisions that are made by management concerning rival firms. Business position and share are analyzed by the company to improve sales and revenue. This framework helps M&S anticipate the needs and wants of people to construct and sustain competitive advantage. Market opportunities and threats are identified by seniors to design the system and make it function effectively. Hence, these are five elements that are examined by the administration and are stated below:

The threat of new entrants: In every industry, new firms join when a particular segment is making a profit and leave to prevent losses. Customer's tastes and preferences are dynamic and keep changing with time. For this, M&S makes changes in products and delivers creative and innovative things to attract people and make them purchase items according to their demands. New items and services are innovated by seniors to enhance the number of customers by giving them goods according to their demands. A large amount of money is invested in the research and development department to conduct market surveys and acknowledge the needs and wants of people. This helps M&S to increase its reputation concerning competitors that are Tesco, Aldi, Asda, and Wal-Mart (Javaid, 2014).

Bargaining power of buyers: Customers are an essential part of organizations that buy things and pay money to fulfill their needs and wants. Firm sales and profitability depend upon people's requirements and willingness to purchase products. Management's responsibility is to set appropriate prices and provide various offers and discounts to influence customers.

Bargaining power of supplier: The administration requires adequate raw materials to manufacture things and deliver appropriate items in the market according to the needs and wants of people. M&S is a retail store that needs to have sufficient items and varieties in the outlet to have a large customer base. Along this, an efficient supply chain is constructed by management to maintain relations with them and timely deliver things concerning the demands of the public. M&S has the opportunity to use a third-party manufacturing concept that is used by Walmart and various other firms.

Threat of substitutes: The market has a large number of firms in the retail industry, which determines that customers have choices to purchase things according to their tastes and preferences. For this, management must use the latest tools and techniques and thereby manufacture innovative and creative things. M&S is a retail store that has a different variety of home products, clothes, and luxury things for people. It is a service-oriented firm that provides a variety of goods to customers (Kajanus et. al., 2012).

Industry rivalry: Every sector has various companies that provide items and services to enhance sales and generate adequate profit from the business. The retail sector is an industry that has an intense level of competition. For this, management's responsibility is to set appropriate rates for goods to attract customers and lower profitability. M&S constructs sustainable differentiation, that is, items are designed in such a manner that seniors can grab people and make them purchase things accordingly. Besides this, the administration collaborates with rival firms to enhance market share and position.

STP: 

This is a tactic that is used by organizations to provide things according to the demands of people. Companies, suppliers, customers, and competitors are various components of the microenvironment that directly impact business activities. Along this, political, economic, social, technological, and legal factors are acknowledged by management. This helps them have complete information about market conditions, thereby making the system function effectively.

Segmentation: This aspect defines the division of the market into various segments, that is, heterogeneous things are converted into homogeneous tactics. People are grouped according to their similar tastes and preferences. Demographic, behavioral, psychographic, and geographic are various elements that are used by M&S to provide products concerning the needs and wants of people and countries. Food, clothes, and different types of items are present in stores to deliver things according to the requirements of customers (Lidstone and MacLennan, 2017).

Demographic segmentation is adopted by M&S, which defines that different types of clothes are given by the company to customers according to market trends. Cost-conscious groups are the prime objective of firms, which benefits management by attracting a large number of customers by providing a variety of range items in outlets. This advantage allows firms to improve sales and generate adequate revenue from business.

Targeting: This concept specifies that companies provide items and services according to the demands of people. M&S is a retail store that provides different varieties such as clothes, home products, and so on. These are things that are delivered concerning people, male and female. Along with this, income level, age, and various aspects are considered by management to provide things according to customers. Upper and middle class are criteria used by M&S to provide quality products to people (Porter, Huang, and Woodward, 2013).

Positioning: This is another tactic that defines activities conducted by the administration to inform the public about products and services. Promotion, pricing, and distribution strategies are used by M&S to attract customers and make them purchase things according to their needs and wants. This is a premium brand that provides high-quality things to people. Management has set high rates for each product, which is due to the market image and quality of the product.

SWOT analysis: 

This technique is used by the management of M&S to have complete information about market conditions and system abilities. Market research is a tool that helps seniors acknowledge the needs and wants of people. Along with this, competitor's offerings and tactics are anticipated to design systems and use appropriate tools and technologies (Schilke, 2014).

Strengths: M&S is a famous retail store that has outlets in the UK and various other nations. Skilled and competent staff members are present in the firm, which helps management deliver its own branded goods. Different home products, clothes, and luxury items are provided by the company to a large number of customers who buy things concerning their tastes and preferences. This benefit is superior to enhancing market reach and improving sales and profitability.

Weaknesses: The retail industry has a large number of firms, which affects M&S and its market share. Management is required to register the company and take licenses from authorities to safeguard their brand and prevent things from being misused and copied by competitors. They are even required to make changes in items and deliver innovative products to the market. For this, seniors are required to use the latest technologies and make employees capable of providing quality things and services to customers. This consumes a large amount of funds, time, and efforts of top personnel to train staff, thereby enhancing the skills and abilities of members.

Opportunities: Management of M&S requires increasing market reach, which helps them to have a large customer base (Sevkli et. al., 2012). With technological advancements, the internet enhances various tactics for firms to provide appropriate information to people about a variety of items. Executive has the opportunity to develop a website and give online facilities to customers to purchase things from their homes. This advantage allows M&S to introduce new market segments and increase sales volume and profit. There is an opportunity for M&S to expand its business in China, India, and various other countries, and then the firm has an increased number of consumers available.

Threats: M&S is a retail store that requires it to deliver items and services concerning the needs and wants of people. Management's responsibility is to frame strategies and policies concerning the laws and legislation of the government. The company has outlets in different nations, which influence business operations. The exchange rate impacts the import and export of items from one nation to another. Thus, senior-selected countries have fewer changes in rates and policies.

Tesco, Aldi, Asda, and Walmart are various rival firms of M&S, which define that management is required to deliver things according to the tastes and preferences of people. Along with this, companies even require a skilled and competent workforce that provides quality products and quick services to customers to satisfy them and make them loyal to the firm.

Modifications that are made by Marks and Spencer: 

M&S is a retail store that provides a variety of items and services according to market trends. Management must deliver quality things to people concerning their tastes and preferences. Luxury products—food, clothes, and home appliances—are provided by M&S. Besides this, executives have branches in different nations, which helps the company have a large number of customers. Therefore, these are various changes that are made by the administration to improve sales and market reach and are stated below (Yuan, 2013):

• New items and services are provided by M&S to give people the choice to purchase things according to their demands. Market trends are used as a prime goal to design products and deliver luxury goods to customers.
• The latest tools and technologies are used by the company, which help management deliver quality things and quick services to people.
• Meetings and conferences are organized by seniors to provide appropriate information to staff members about items and deliver adequate services to customers.

Recommendations: These are various suggestions that help M&S increase market reach and customer base, as follows:

• Feedback: Market surveys are various techniques that help management to have complete information about the tastes and preferences of people. This is the best tool that benefits M&S to assess system capabilities from customer feedback. Along with this, seniors even identify the needs and demands of the public, which are used to design and deliver creative and innovative things in the outlet.
• Market research: This is another tactic that helps the administration acknowledge image and goodwill concerning rival firms. The products and strategies of Tesco, Aldi, Asda, and Wal-Mart are anticipated by seniors to make the system function accordingly. This helps M&S deliver items and use appropriate pricing and promotion strategies to attract customers and influence their purchase decisions (Wagner III and Hollenbeck, 2014).
• Expansion: Enlarge business and open new outlets in different countries, such as China and India. This helps management to enhance the number of people, thereby improving sales volume and profitability.
• Online marketing: M&S is establishing websites to provide information to people about a variety of products. Besides this, the administration also gives consumers the facility to purchase things online.
• CSR activities: M&S has a strong brand image, but management is required to execute corporate social responsibility to provide items and services to fulfill the needs and wants of people. Different range items that are low-priced products must be available in store. This helps the company increase its customer base and sales.

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CONCLUSION

From the above report, it can be comprehended that every industry has a large number of firms that are executing business. The administration must design a system and use appropriate tools and technologies to deliver adequate items and services in the market. Competitive advantage is an aspect that defines information about different strategies concerning pricing, promotion, and distribution used by Marks and Spencer. This helps management position the firm higher than rival firms. Along with this, seniors are even able to attract customers and make them purchase things according to their tastes and preferences. Segmentation, targeting, and positioning are various techniques that are used by the administration to provide things concerning the demands and needs of people. SWOT analysis is a tactic that benefits seniors of M&S to have accurate and complete knowledge about market conditions and system abilities. Thus, management identifies modifications and changes that are made in products to grab the attention of people and thereby enhance sales volume and profitability.

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REFERENCES

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