Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 11 June 2018
Length: 12 pages
Data source: Published sources
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Abstract
The case describes the position of Marks & Spencer (M&S), a leading high-street retailer in the UK. The retailer decided to enter China's retail market in 2008 is based on perceived synergies between the company's products and an increasingly affluent Chinese middle class. Upon entry, M&S encounters myriad challenges that are not part of its original strategic calculations: errors in basic shop keeping, an evolving Chinese retail environment, and the emergence of e-commerce. M&S's difficulties in China among foreign retailers are not unique, however. Numerous high-profile retailers find China's retail market inhospitable, leaving shortly after entry such as Tesco, Best Buy, Home Depot, and Asos. Although M&S experiences similar challenges to these firms, it also encounters a shifting retail landscape that wrong foots even some experienced local retailers. After eight years in China experimenting with different business models and deteriorating financials, M&S faces a key decision: should it stay or leave?
Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 16 January 2019
Length: 6 pages
Data source: Published sources
About
Abstract
The case describes the position of Marks & Spencer (M&S), a leading high-street retailer in the UK. The retailer decided to enter China's retail market in 2008 is based on perceived synergies between the company's products and an increasingly affluent Chinese middle class. Upon entry, M&S encounters myriad challenges that are not part of its original strategic calculations: errors in basic shop keeping, an evolving Chinese retail environment, and the emergence of e-commerce. M&S's difficulties in China among foreign retailers are not unique, however. Numerous high-profile retailers find China's retail market inhospitable, leaving shortly after entry such as Tesco, Best Buy, Home Depot, and Asos. Although M&S experiences similar challenges to these firms, it also encounters a shifting retail landscape that wrong foots even some experienced local retailers. After eight years in China experimenting with different business models and deteriorating financials, M&S faces a key decision: should it stay or leave?
Related
Subject category:
Strategy and General Management
Published by:
Asia Case Research Centre, The University of Hong Kong
Version: 16 January 2019
Length: 6 pages
Data source: Published sources