Answer to Question #132508 in Microeconomics for Steve Nnaji

Question

Analyse the weakness and threat on the demand side of m&s relating this to controllable and uncontrollable factors

Answer 1

The company is losing some of its key employees to the it’s competitor not leaving some of the product developers. This means, the company will have to invest in recruitment and training of the new recruits and still facing risks of know-how that is becoming available to their competitors (Davey, 2006).

They are late comer in digital retail space since they came in late 2010 which later M& S launched in 2014. This has made it experience privacy breaches on its website and technical problems. Therefore shut down on 2015 (Curtis, 2015).

The company has also been affected by recession which lead to decline of sales mostly clothes. This is still a challenge in Middle East.

Company like Aldi and Asos came up with discounted pricing where M & S emphasized high quality and satisfaction (The Marketing Society, 2010). This made it experience short term decrease in sales.

Prolonged crisis also has increased price sensitivity among its customers.

Also issues like falling pound, reduced commodity price brought about reduced demand or consumer confidence drop.