Competitive Analysis of Primark: Porter's Five Forces and Value Chain Analysis

PRIMARK

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction of the company.......................................................................................................1
Background of the company.......................................................................................................2
Product and services of the company..........................................................................................2
Analysis of competitive environment of the company...............................................................2
Inbound logistics, operations and outbound logistics.................................................................5
Analysis of support activities in Porter's value chain..................................................................5
Identification of key value adding activities...............................................................................6
Analysis of “ Porter's five force analysis” and “Porter's chain analysis”....................................7
Summarise and reflect on how the business could deploy information technology...................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment involves the mixture of internal and external factors that includes
employees, staff, suppliers, buyers, customers, market and social trends, social and economic
factors, technological advancement, owners, rule and regulations of the governance and policies
as well (Alumbugu, 2020). It is an environment that reflects the strong relationship between the
customers and the company. These are those factors that are not in the control of company as it
changes as per the change in the market environment. But company implies some of the changes
within the business as to prevent themselves from the ongoing changes within the market.
Business environment reflects the ability of the business to build or maintain strong and
successful relationship with the customers. Primark is the retailing company of Irish fast fashion
and have headquarter in Dublin, Ireland with the subsidiary of retailing company ABF and food
processing. This report includes the introduction, background and product and services that are
dealt by the company. After that to measure the competitive analysis company applies porter's
five force analysis, value chain analysis, inbound, outbound and operations logistics. That all
factors has been analysed to measure the competitive analysis so that company gain the
competitive advantage in the market.
MAIN BODY
Introduction of the company
Primark is an Irish retailing company and have a subsidiary of food processing as well.
The company is named as Penneys in Republic of Ireland and this named is not used as on
international level as it is owned by American retailer J.C. Penney. Primark provides the services
to 13 nations with total number of locations of 373 as per year 2019. They provide their services
of around different areas and includes Australia, Belgium, France, Germany, Ireland, Italy,
Netherlands, UK, US, Spain, Portugal and Slovenia. The recent CEO and COO is Paul merchant
and they have their own websites as well named as Primark.com. They deals in retailing sector
and covers the wider area and include clothes of women, men, kids, home-ware, beauty (Akhtar,
2018). The works with the aim that products are made from Primark is with the respect of people
and for the planet as well. People welfare is what matter them the most whether they are making
T-shirts in Bangladesh, jewellery in India or sock sin Turkey they expects the fair wages and safe
working conditions for the employees and customers. Primark doesn't owned any of the factory
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in fact, 985 of the factories making products of Primark and for other companies or brands as
well.
Background of the company
Primark was founded by Arthur Ryan in June 1969 on Mary street, Dublin and first store
was developed by the founder on behalf of Western family who has found Associated food of
British in 1935 (Ayantoyinbo, 2018). After getting success in Ireland company further expand
their business in UK and Penneys opened the large store in 1971 in Belfast city centre and in
1973 open the Primark store in Derby, England. Company couldn't use the name “Penneys”
outside the Ireland as it was registered by J.C. Penneys. After that the name Primark was
invented to use the name outside the country. Primark opened their new headquarter in Dublin,
Arthur Ryan house in 2015 that is formerly known as chapel house. As on 2018, a fire started on
the roof of store in Belfast and that whole building was destroyed and there is black smoke in
the city. Then that building was a former bank and have the historical value and after that new
store of Primark was developed on the same site and that is innovative in 8 of December in 2018.
Product and services of the company
Primark offers the diverse range if the product and services and includes the wide variety
of kids, women, menswear, footwear, accessories, beauty products, confectioneries and home-
ware. Primark sells product of Sephora Products with the rate of around £1 they also start selling
vegan snacks in January 2018 company also sells clothes at low price (Ceil, 2019). Primark
provides the fast fashion contemporary trends in the market as per their competitors and other
retailers as like Zara and H&M. Primark offers the most trendy and stylish clothes to the
customers with the more reliable and astonishingly prices. They also provides the vast variety of
kids clothes that attracts the large customer base and and encourage the customers to buy the
maximum amount of items.
Analysis of competitive environment of the company
There is a high competition in the market as there a lot of brands that works on same
sector and to imparts more and more sales company applies different and unique strategies in the
business. Before insist any of the strategies and plan within the business it is mandatory that
company must analyse the competitive environment. That provides the brief knowledge about
the different consequences that has been changes in the market as per the demand and
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