Spencer Analysis" .In the present competitive business environment, consumers are extremely conscious about both the value that they are receiving while using the product or service as well as the money that they are paying for enjoying this value. With the increasing spending capacity, most of the consumers throughout the world, especially in the developing countries, today, do not look for the products or services that are available at the lowest price. Rather, they look for products that are innovative, effective and worth spending money. Organizations that are able to offer more value-added products and services at decent prices are likely to stay ahead of their rivals. Hence, it can be said that the slogan (‘don’t ask the price – it’s a penny’) that M&.S used to promote its products is not anymore applicable today.
At present M&.S creates and delivers value to the customers through the quality and price of its products and services. The retailer is known for offering quality products and services at a decent price (Seth &. Randall, 2001). ‘Innovation’ and ‘trust’ are the two other mediums through which the company delivers value.
Strategic resources are those resources that help an organization in the process of offering the best possible products and services to its customers and gaining and retaining the competitive advantage for a significant period of time. Core competencies, on the other side, are the basis of sustainable competitive advantage of an organization. According to Prahalad and Hamel, core competency is the inimitable combination of abilities and skills that are the key behind the core product or service of an organization. If Michael Porter is to be believed then the competitive advantage is mainly dependent on two aspects – cost and differentiation. Core competencies ensure that the organization can properly differentiate its products and control its costs (Silber &. Kearny, 2009).