Introduction

To be continue to the second part, in this report I present about the Strategic position for Marks & Spencer Company in UK clothing industry. First of all, I summarise the external environment of M&S. According to the portfolio, there are three factors that have influences in UK clothing industry: new entrants, suppliers and rivalry. In terms of future trends, the corporation tax decrease and the inflation rate remain are the signals of the recovery of UK economy, hence customers will focus on their needs and they are willing to pay. Next, the majority of UK population is 41.2% of people from 25 to 54 years old. Besides, eco system is a new trend for clothing retailers when both the government and the retailers want to protect the environment and customers. Last but not least, the development of technology creates a new buying behaviour. Therefore, almost all of clothing retailers have to develop their online shopping. Factors and trends of UK clothing industry lead to the result that the market is attractive for both existing retailers and new entrants to have profit. In terms of internal environment, Marks and Spencer has their own distinctive advantages that are valuable, rare, inimitable and non-substitutable. According to Marc Bolland, Marks and Spencer is 130 years brand name and that is the reason for trustworthy brand, employee loyalty and special culture. The fourth advantage is ownership based on the annual report of Marks and Spencer 2013 that it owns £2,511 million value land and buildings. The last advantage is the capacity to innovate. In the next paragraph, I present about the choice of strategic position based on the Ansoff’s Matrix.
Choice of Strategic Position

According to Richardson M. and Evans C. (2007), the Ansoff’s Matrix is “a framework to generate alternative strategic directions for an organisation,