This is the details PESTLE analysis of Mark and Spencer (M&S) which has been operation in retail industry. Marks and Spencer (M&S) is a retailer headquartered in UK with 1382 stores worldwide according to its 2016 financial report.
Political
M&S has been favored through EC’s free trade agreements and have led to decreased sourcing costs. Higher cost structure has disadvantaged M&S in international markets. Company is known for its Plan A CSR initiative but lack of clarity of UK government on energy efficiency scheme which negatively affects M&S initiatives.
Economical
M&S is affected by competitors’ discounted pricing. M&S’ focuses on higher quality which only led to short term loss and customers were attracted to quality with value. Customer confidence was buoyed by M&S efforts to push through enhanced quality. Financial crises has however led to more price sensitive consumers and M&S needs to work on with the market flow if wants to have sustained sales. Now the consumers are on the lookout for value deals online or offline. Falling oil prices negatively affected stores performance in UAE and Middle Eastern countries (M&S, 2016).
Socio-cultural factors
Change over from baby boomers into the generation x and millennial require changing strategy to cater for the new segment. Baby boomers are now mostly retired and no longer the prime consideration. Interest in the organic and green produce require rethinking which brands to push.
Technological Factors
Since M&S has strong social media and online presence so it is well placed to capitalize on this avenue. Consumers are now more technologically focused and prefer mobile commerce and online retailing to in-store purchases. M&S should build up its presence in the digital medium to take full advantage of this shift.
Environmental
M&S with its Plan A success is well placed to capitalize on its successes. Stricter regulations on environment and increasing consumer pressures on ethical green practices would require stricter standards at M&S, however M&S is well poised to take advantage from this development as it has already been showing its concern for the environment
Legal
M&S allows an omni channel experience by allowing consumers option for home delivery or in store pickup. Decision to exit EU may along with other UK retailer face legal action and for that legal plan needs to be put in place (ivory research, 2016).