Internal and External Environment Analysis of Primark

This presentation provides an analysis of the internal and external environment of Primark, including factors such as political, economic, social, technological, legal, and environmental. It also includes a SWOT analysis and discusses the competitive benefits and future sustainability of the organization.

Internal and external
environment analysis of
Primark
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Introduction
 It is vital for business performing an external analysis as the data collected
would show whether any scopes are existing for development and expansion
that could exploit and reap the advantages.
 Strengths as well as weakness are considered internal factors of the
business, whereas opportunities as well as threats are considered as external
factors of the organization.
 Primark has been selected as the case study organization.

A brief overview of the organization
 Primark is one of the Irish fast fashion retailer. It is headquartered in
Dublin as well as a subsidiary of ABF.
 Arthur Ryan found the first store of the organization.
 Primark provides several products consisting of newborn as well as
clothing children, men’s and women’s wear, accessories as well as
footwear. In addition, beauty products as well as confectionary are
offered by the company (Hoffmeyer et al. 2016).
 The organization has more than 350 stores across the world and
considered as one of the largest retailers across the world.

Analysis of the external environment
using proper theories and frameworks
 PESTLE analysis of Primark
 Political factors
 Government organisation or attitude
 Political stability or instability
The Brexit saga has caused several uncertainty for the business like
Primark having operations in Europe. Some of the organizations like
Primark have benefited.

Contd.
 Economic factors
 Economic development
 Inflation, rate of interest and different monetary policies as
well as
 Consumer confidence

Contd.
 Social factors
 Income distribution
 Demographic changes
 Changes of lifestyle
 Fashion changes
 Labour/ social mobility
 The organization needs to focus on several social factors like
mentioned above that can be helpful to gain competitive
benefits.

Contd.
 Technological factors
 New inventions in the market as well as growth
 Technology transfer rate
 Life cycle as well as speed of technological obsolescence
 Changes in information technology

Contd.
 Legal factors
 Tax policies
 Safety regulations
 Employment laws
 Competition regulations
Environmental factors
 Environmental regulations as well as promotions

Analysis of the internal
environment using proper
theories and frameworksThe macro environment is considered as the general layer of business
environment and includes broad environment that have an impact of the
organization in the industry.
SWOT analysis can be helpful to analyse internal environment of Primark
(Hoffmeyer et al. 2016).

Analysis of Internal analysis of
Primark
 Strengths
 The core strength of the organization offers cheap clothing that
enables the brand overtaking the Acadia group (López et al. 2017).
 The financial crisis as well as subsequent recession as cash has
strapped the customers flocked due to low prices.
 It results the organization obtaining successive revenue development
as well as probability.

Contd.
 Weakness
 Primark suffers from perception of customers, which is basic
brand lead it to face young as well as upcoming fashion
brands.
 Primark relies that it depends on the UK market completely
that produces more than half turnover of the organization.

Contd.
 Opportunities
 Rising obesity levels can present a gap market scope for the clothing
retailers who caters to the plus-size customers .
 It has ventured into the market of the USA with more than 10 stores

Contd.
 Threats
 Brexit Saga has caused uncertainty in business (Hur et al. 2016)
 It gains profit on sales in the UK whether sales of Britain goes ahead
as well as leaves the EU.

Articulation of the competitive
benefits
 Rising obesity level causes a major gap in Primark market to cater to
plus size customers
 The ageing UK population has ability to represent an opportunity in
order to serve the market.

Diagnosis of strengths,
weaknesses, sources and future
sustainability Primark It is the fastest developing channel in the UK retail market
 The organization has ventured us market with more than 10
stores(Gleim et al. 2018)

Conclusion
(Strategic opportunities and risks)
 Value proposition of Primark regarding low prices has ensured that it
becomes the low cost leader.
 Primark attracted various customers from subsequent recession as
the cash strapped on the customers

References
 Gleim, M.R., Smith, J.S. and Cronin Jr, J.J., 2018. Extending the institutional
environment: the impact of internal and external factors on the green behaviors
of an individual. Journal of Strategic Marketing, pp.1-16.
 Hur, J.W., Shannon, D. and Wolf, S., 2016. An investigation of relationships
between internal and external factors affecting technology integration in
classrooms. Journal of Digital Learning in Teacher Education, 32(3), pp.105-114.
 López, C., Carlos, J., Guevara, G., Briseyda, A. and Domínguez Guerra, A.E.,
2017. The effects of the internal and external factors influencing adults between
the ages of 55 and 70 on their english learning at “english vocational workshops”
during the year 2017 (Doctoral dissertation, Universidad de El Salvador).
 Hoffmeyer, F., Sucker, K., Berresheim, H., Monsé, C., Jettkant, B., Beine, A., Raulf,
M., Bünger, J. and Brüning, T., 2017. Impact of internal and external factors on
EBC-pH and FeNO changes in humans following challenge with ethyl acrylate.
In Clinical Research and Practice (pp. 7-16). Springer, Cham.