Marks And Spencer

Strategy and competition in the European market for clothing retail: Marks and Spencer against Zara.

Nowadays the clothing market in European is the first worldwide in terms of volume and turnover. A lot of actors lead the market and the competition is hard. Marks and Spencer and Zara are substantial companies in this activities sector with profiles very different.

Mark and Spence was founded in 1894 by Michael Marks and Thomas Spencer in Leeds, the city of England. It is an international company which present in over 50 territories worldwide and employ almost 86,000 people. The main activity is the large retailers with the products like clothes, food and house products. Its turnover is split between the food with 55% and general merchandise with 45%. Mark and Spencer own 798 stores across the UK and there is the more emblematic store in this country.

When at Zara it's a more recent company, it is a Spain company, which belongs to the large group of distribution Inditex. It is composed of the following brands Massimo Dutti, Zara home, Stradivarius, Pull and Bear and Bershka. Zara was created in 1975 by the founder Amancio Ortega Gaona in Corogne, the city on the Spain where is located to the head office. The main activity is the textile industry but also the home decoration. Zara is developed in other markets such as ready-to-wear, accessorises and perfume. Zara has known a great success since many years with a fast-fashion. Currently, Zara has 3000 stores in 82 countries through Europe, America, Africa and Asia. There are about 100 000 employees in the world. Zara represents 1/3 of Inditex group and it corresponds to 63% of the group turnover.

What is interesting in the comparison these two brands, it’s that one has already had a life cycle and now it enters into the phase of rebirth, while Zara pursue it growth and has acquired a great place in this sector. For long time they have managed to impose in the European clothing market and have continued to competitor. These two large companies are of different generation and nationality what enables of see two opposites functioning’s.

The main problematical of this dissertation is to determine the strategy and competition in the European market for clothing retail: Marks and Spencer against Zara. In the first part, it will be rewarding to analyse the strategic choices what they need to do make its last years. Then in the second part of developing competitive intensity of both companies to face the clothing market European that is becoming increasingly hard should be extended the creation of many companies.

...