Mark and Spencers

In: Business and Management

Submitted By rameez444
Words 800
Pages 4
 The Factors which led M&S to internationalize
The company had an understanding about the domestic market which was saturated and expansion was only possible if they internationalize.
Just to test M&S started exporting which helped in franchising relationships which lowered the political and economic risks, thus they finalize to invest directly.

 The sequence of country entry and the reason behind it
• Canada
• France
• Belgium
• Spain
• Germany
• Greece
• Hungary
• Portugal
• Czech Republic
• Japan
• Hong Kong

M&S started with Canada and concluded with the Far East because they concentrate in regions with high incomes, solid infrastructure, large middle class, low political risk and con-sider very important the use of English language. The company’s first step was opening its own stores and expanding through purchases in major economies, this is why Far East remained last.

 Modes of entry in various countries
• Exporting
• Franchising
• Acquisitions
• Sole ownership
• Joint venture

The possible reasons are:
• Low political and economic risks
• High purchasing power
• Infrastructure
• Unfamiliar with the culture and the political climate

 The country factors M&S seem to value
M&S merchandised its stores to French lifestyle which clearly showed they valued France. The store had large sections of French wine and clothing than British imports.

They also seemed to value US as they did not change the name of the US chain Brooks Brothers after buying for the loyal consumer base.

They did not seem to value Canada as they assumed the economy and infrastructure of Canada was similar to UK which would lead to closing of their stores.

 Adaptation to M&S business model in different countries
France: In 1975 M&S entered France. M&S merchandised its stores to French lifestyle. The French stores…...

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