Global Strategy

Global Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Reasons for International expansion............................................................................................3
Possible strategic choices for the parent company......................................................................6
Reasons for the choice of location...............................................................................................8
Strategic methods of entry.........................................................................................................11
Problems of operating internationally........................................................................................12
Strategic advice for the overcoming of problems......................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Global Strategy refers to the various types of plans which are prepared by an
organization which helps in ensuring that the implementation of various types of
strategies can be done in a highly effective manner within the organization (Arnaud and
et.al., 2016). This report is based on Primark. It is looking forward towards expansion in
Romania. In this report, detailed analysis will be made on reasons for parent company's
international expansion, possible strategic choices for the parent company, reasons for
the choice of location, strategic methods of entry and possible consequences, potential
organizational and managerial problems. Additionally, specific analysis on strategic
choice for the subsidiary to overcome the problems will be discussed as a part of this
assignment.
MAIN BODY
Reasons for International expansion
There are various types of reasons due to which Primark wishes to expand its
operations in Romania. Some of these reasons are-
Evaluation of the company's historical performance- In 2019, Primark generated
a revenue of 7.79 billion pounds. However due to the impact created by the COVID-19
pandemic the overall profits of the company have taken a hit (Collinson, Narula and
Rugman, 2017).
Products/Services Range- There are a wide range of products and services
which are offered by Primark to its different types of customers (Cuervo‐Cazurra, Doz
and Gaur, 2020). .
Share of the market- Before COVID-19, Primark had an overall market share of
13% in the market. After the reopening of its stores, the share is down to 8%. Thus it
can be said that due to the impact of the COVID-19 pandemic the overall market share
of the company has reduced. This has created an impact on the level of revenues and
profitability in the market of the company.
Competitive Position within the industry- The different types of competitors of
Primark are Mothercare, Select Fashion, M&S, New Look, Hansae, Pimkie, M&Co.,
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