International Expansion of Primark in Japan: Strategies and Challenges

Business

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
TASK 1............................................................................................................................................4
Reason behind internationalization and market strategies pursued by organizations when
entering international market ...................................................................................................4
Advantages and obstacles in global expansion ..........................................................................5
Significance of international business for growth and current trends ........................................5
TASK 4............................................................................................................................................6
Impact of cultural differences and ethics on successful international expansion ......................6
SWOT analysis of Primark ........................................................................................................6
PEST analysis of Japan...............................................................................................................6
Actions Primark need to take to overcome challenges...............................................................7
Role of management when expanding in new market................................................................7
TASK 5............................................................................................................................................8
Strategies that can be used by Primark to enter international market ........................................8
Plan for market entry ..................................................................................................................8
Support provided by proposed plan in successful expansion of Primark ..................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Primark is Irish clothing retailer headquartered in Dublin and currently the firm operates
380 stores in more than 13 countries across Europe and America. The present report centres
around international expansion of Primark in Japan. The concept of global business including
market strategies are provided in this report. Operational and managerial challenges faced by
business firms during international expansion are described in this report with ways to overcome
them. Plan of entry for Primark in Japan is also provided in this report.
MAIN BODY
TASK 1
Reason behind internationalization and market strategies pursued by organizations when entering
international market
One of the primary reasons for global expansion is to offer better services to their
international clients. In addition to this strong presence in various international reasons help
business firms gain brand recognition and global credibility which is beneficial for progress of
the company (Curtis, (2020)). In case of clothing retail firms, intentional expansion provides
opportunity for diversification of assets. Successful global expansion of Primark enables the
company to reduce dependence on saturated domestic market and complete demands of
international consumer to purchase clothing from brands with global outlook. The business
strategies pursued by organizations during internationalization are described below;
 Market Penetration; This involves enhancing sale of current products in existing
market.
 Product Development: This involves offering new products to current market (Dotzel &
Shankar, (2019)).
 Market Development: Expanding to new market with current products is the aim f this
strategy.
 Diversification: This strategy includes expanding to foreign market with new products.
The recommended strategy for Primark is market development in which the company
offers its existing fashion line to new international market. The market recommended for this
strategy is Japan as western fashion is hugely popular in the region. This is beneficial strategy for