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Original title: 🇬🇧🎸 Marks and Sparks on World Tour 🌍
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3.10 Case study_ Marks & Spencer
1. What market entry modes did M&S use in its international expansion? 2. What criteria do you think M&S applied when it decided the entry mode?
Course task reproduced as context. The response below is Fiona’s independent academic work. KEATS source ↗ (university access required).
Explore writing on this question ↗Marks & Spencer (M&S) is the definition of a British icon — dependable, widely loved, and almost untouchable at home. Think of them as the retail version of The Kinks or Oasis: adored in the UK, but the moment they took their act abroad, things didn’t hit quite the same. The Kinks, for example, famously bombed their first US tour in 1965 due to clashes with promoters and a cultural disconnect (Wikipedia, 2024). M&S followed a surprisingly similar path in the world of global retail.
When it came to international expansion, M&S didn’t rely on a single route. Their approach was a bit like a band planning a world tour — adapting the setup based on the market. Their earliest move into overseas markets was through exporting, shipping their St Michael-branded goods abroad in the 1940s. Like The Kinks sending records to US radio stations before performing live, it was a low-risk, hands-off approach designed to test the waters (Root, 1994).
As confidence grew, M&S shifted to franchising, particularly in markets where local knowledge was key or the environment was politically uncertain — places like Israel, Bermuda and the Philippines (CIBER, 2000). This was their version of Elvis Costello letting a local act cover his music: you extend your presence but avoid the full commitment of being on the ground yourself (Anderson & Gatignon, 1986).
In markets with greater complexity or where consumer preferences felt culturally distant, they moved into joint ventures. A key example was their partnership with Spanish retailer Cortefiel. It was like Oasis dropping a collaborative track with a local artist to help them break into that market’s charts — not just musically but socially and culturally relevant (Johanson & Vahlne, 2009).
And then, of course, there were the full solo shows — the wholly owned subsidiaries. In big markets like France and Germany, M&S set up shop completely on their own. This was the retail equivalent of David Bowie producing and staging every element of his global tour himself — full control, high cost, but entirely on-brand (Dunning, 1988).
So why didn’t the world tour go as planned? One big reason was that M&S didn’t always adapt their setlist to the local crowd. They relied on UK-tested styles and assumptions, often failing to match the trend-driven demands of global fashion consumers (Kotler & Keller, 2016). Their retail “stagecraft” was also off — with slow inventory turnover and clunky logistics disrupting performance (Business Week, 1998). Meanwhile, newer, faster acts like Zara and Tesco were pulling the spotlight with cheaper, fresher, more responsive offerings (Mintel, 1999).
Ultimately, M&S had the reputation, the legacy, and the loyal home crowd — but global stardom requires more than playing the same old hits. Success in international markets is like touring foreign arenas: you’ve got to read the room, remix your material, and sometimes let the local talent take the lead. M&S may have been rockstars at home, but abroad, they needed to learn to improvise — or risk getting booed off the stage.
References.
- Anderson, E. and Gatignon, H. (1986) Modes of foreign entry: A transaction cost analysis. Journal of International Business Studies.
- Business Week (1998) Marks & Spencer’s Meltdown, November.
- CIBER (2000) Marks & Spencer Case Study.
- Dunning, J.H. (1988) The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies.
- Johanson, J. and Vahlne, J.E. (2009) The Uppsala Internationalization Model Revisited: From Liability of Foreignness to Liability of Outsidership. Journal of International Business Studies.
- Kotler, P. and Keller, K.L. (2016) Marketing Management. 15th edn. Pearson.
- Mintel (1999) UK Clothing Retailing.
- Root, F.R. (1994) Entry Strategies for International Markets. Lexington Books.
- Wikipedia (2024) The Kinks’ 1965 US Tour. Available at: https://en.wikipedia.org/wiki/The_Kinks%27_1965_US_tour (Accessed: 16 July 2025). 613 words
