Answer to Question #155247 in Microeconomics for ashad

Question

1. Analyze the weaknesses and threats on the demand side of M&S, relating these to controllable and uncontrollable factors?

Answer 1

Divide the weakness and threat into the controllable and uncontrollable:

Controllable factors:

The controllable factors are price, quality and design elements. The weakness which has started to creep in are in terms of price and quality. The threat is in terms of having the capacity to provide clothing which is liked by target segment. Looking at the spending patterns of the target segment the targeting strategy need to be changed.

Uncontrollable factors:

The uncontrollable factors are mainly external like change in customers behavior and their preference for the design. Innovation and Marketing effort being out by the competitors. in order to survive these external factors the company must look forward to change the design strategy while the products meet the quality and value parameters of the brand. company should also go for advertising the products and communicate the core value proposition.