M&S Economic Study

Economics: Assign manpowert Marks and Spencers Marks and Spencers is a multinational chemical chain of department stores, which sell a wide range womens, mens and childrens clothing and footwear, gifts, plate furnishings, beauty products, financial services and diet, in all exclusive to Marks and Spencers. It is a successful alliance that has 375 stores in 29 countries worldwide and over 10million shoppers a week. As swell as owning the US supermarket group Kings Supermarkets M&S website The company has expanded both vertically and conglomerately. Looking at home ware, foods, flowers, (see appendix) cafés, gifts and cards. They have invested in many different styles of clothing ranges such(prenominal)(prenominal) as Per Una, Per Una Due and the Limited Collection. The conglomerate integration of the food market has proved to be very successful with the fount of independent simply foods branches and ?lifestores, selling homeware. M&S operates in an oligopolistic market structure with its main competitors being NEXT, House of Fraser, bedcover and Alders. All of which have aimed their clothes at similar markets such as middle aged men and women and their children.

This market has pretty high barriers to entry, as it is hard for new companies to enter and fence as these are well established firms with a give customer base and strong supplier relationships. The larger firms such as M&S can take usefulness of internal economies of scale. These would include bulk buying, managerial, and technical economies of scale. For M&S bulk buying would incriminate that they can use the coat of their company and massive purchasing power to get wide discounts from their suppliers. Managerial economies of scale would mean that they can specialise their managers and as the output of the M&S rises the managerial cost per unit output will not rise at the aforementioned(prenominal) rate. The Technical economies of scale that M&S would take avail of would be things such as large storage would mean lower cost of storage per... If you want to get a full essay, order it on our website: Ordercustompaper.com

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