SWOT Analysis of Primark and its Impact on Functional Areas

This article discusses the SWOT analysis of Primark, a leading clothing retailer in the UK. It covers the strengths, weaknesses, opportunities, and threats of the company and how they impact the marketing, production, R&D, and finance departments. The article also suggests ways in which Primark can diversify its product range and expand to new markets to increase sales.

Global Business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
1. SWOT Analysis of Primark ...................................................................................................2
2.The impact of key drivers from the SWOT Analysis of the company impact on the
functional areas-..........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5
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1. SWOT Analysis of Primark
Primark is one of leading company of the clothing segment in the UK. Primark is one of
the cheapest clothing retailer which originates from Ireland. It has a strong foundation set of
rules and policies (Hampden-Turner and et.al., 2020). In the case of Primark, in order to assess
the different weaknesses and evaluate the opportunities SWOT Analysis is explained below-
Strengths
 It has a wide range of products
including womenswear, footwear,
accessories, hosiery, children-wear and
many more which has a wide consumer
base and hold on large audience.
 This brand has a good and successful
reputation in the market. As it has an
organized business structure which
offers quality products at cheap price
for all age group.
Weaknesses
 One of the reason is increase of
competition in the fashion industry
which leads to slow growth.
 Music is not played at the stores so, this
can be quite uninviting for the
customer's.
Opportunities
 The company can diversify and expand
its product range.It can also start the
online channel that generate more
revenue. It can provide high quality
products or services overseas.
 The cloth industry is growing so, It can
expand to new major cities like Asia,
Europe and America by opening new
stores in many cities.
Threats
 It has limited global presence. Main
competitors of the business are New
look, TK Maxx, Matalan, Ardene,
Peacock and River Island which can be
a threat to the Primark. The company
does not have any advertising whilst
their competitors do.
 Economic issues like COVID-19,
disasters, recessions or pandemics can
lead to loss of the business (Silvius,
2018).
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The Primark management must take necessary steps to make maximum use of
opportunities to generate more revenue. Moreover, it helps in identifying the gaps available in
the market to adopt the emerging trends (Hamilton and Webster, 2018).
2.The impact of key drivers from the SWOT Analysis of the company impact on the functional
areas-
Key drivers from the SWOT Analysis create a major impact on the functional areas are
explained below-
 Wide range of products- When the company has a wide range of products it directly
creates an impact on the marketing department. Marketing department helps to create the
new demands for products through marketing programs, positioning and messaging.
 Competition- When the competition increases in the market it will directly affect the
production department by driving the allocation of labor to more productive firms within
the industry. This will help to meet the quality standards and demands of the customers.
 Diversify its product range- When the company decides to diversify its product range
and expand to new market in order to increase the sales which is linked with an existing
product line that will lead to boosting the declining sales of the company with generating
new profits. This will create a direct impact on the R& D department because this
department allows a company to stay ahead in the competition (Xie, and Redding 2018).
 Advertising- It is one of the best ways to reach out to customers and communicate with
larger groups in less amount of time As the finance department collects the data that is
helpful in the temporary and permanent financial forecasting (Wei,Thurasamy. and Popa,,
2018).
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REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Silvius, G., 2018. Integrating sustainability into project risk management. In Global Business
Expansion: Concepts, Methodologies, Tools, and Applications (pp. 330-352). IGI
Global.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
global business services industry. Management Decision.
Xie, E. and Redding, K.S., 2018. State-owned enterprises in the contemporary global business
scenario: Introduction. International Journal of Public Sector Management.
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