Primark SWOT and PESTLE Analysis

This report analyses the business environment of company Primark through SWOT and PESTLE analysis. It covers internal functioning of the company through SWOT analysis and broad market environment factors through PESTLE analysis. The report concludes that the company needs to work on their weaknesses by undertaking opportunities and making fuller utilisation of resources.

Marketing, Sales and
Negotiation skills

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
SWOT ANALSYIS.....................................................................................................................3
Primark Pestle analysis...............................................................................................................4
CONCLUSION ...............................................................................................................................9
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
The report aims to analyse the business environment of company. There are wide market
which affect the working of business. Both internal and external market environment are
necessary for a business to perform their functions smoothly. This report is going to cover
business market of Primark (Herlache and et.al., 2018). It was established in 1969 in Ireland. The
company has its main operations in EU, UK and US. Therefore, there will be analysation about
internal functioning of company through SWOT analysis. Along with this, pestle analysis will
also be done to encounter broad market environment factors.
MAIN BODY
TASK
SWOT ANALSYIS
SWOT analysis is a tool which helps to understand about company what it is doing best to make
it profitable in the market and what should be the best for future Enhancement. Swot stands for
strengths, weaknesses, opportunities, threats. All the factors related to primark are described
below.
Strength weaknesses
Brand name: primark knows how to capture
the market with the right plan and strategies.
It's market share is growing at an exponential
rate. The company's annual revenue was
63,911 million pounds.
Beat to competitors: The company has
different competitors in the market but due to
their efficient network of suppliers they reduce
the cost of the products and have an efficient
waste management system (Khan and Ebner,
eds., 2019).
High availability of products: primark
follows a very simple system to make the
Insufficient product delivery: If there are
strengths there are several weaknesses of the
company. primark fails to diversify their
market in different regions and the recent
example is Us and Japan. The company fails to
deliver the right amount of products and
services according to their customers needs
because of that they face a huge backlash.
Unacceptable practices: Primark has done
some huge mistakes in recent years in the
market. They have to shut down their
operations in these specific regions.
Low cost strategy: Primark has been

availability of their products. For example,
They maintain a Healthy relationship with its
suppliers who deliver the products on time and
because of this they create a huge share in the
market. This is the strength of primark that
helps them to grow in market.
Focus on customer needs: The company
generally focuses on the choices of their
consumers and fulfil their needs and wants. It
results in more customers engagement.
following their low cost strategy they sell their
products to the consumers at a very low cost.
This results in low profit margin which impact
on company's profitability.
Opportunity Threat
Discounts: Primark has always capitalised in
the opportunities and due to this there is a
rapid growth for the company. For example,
like opening new stores in different regions
and providing huge discounts in their outlets to
attract the customers.
Technology: they are always one step ahead
from their competitors by using different plans
and strategies. Tesco is using new shop and go
technology which allows their customers to
scan and pay for their groceries on their
smartphone without visiting their store. This
technology helps the company to grab
opportunity in the market.
Scandals: There are several threats to Tesco in
the market. the company has indulged in
several scandals and frauds and because of this
the company's reputation is decreasing day by
day (Holopainen, and et.al., 2018). For
examples the Christmas scandal they had
prepared a tv ad for customers but it offended
them in the wrong way.
Low brand recall: Due to this they are losing
end number of customers from the market. The
threats which Primark are facing nowadays is
the competition from the fashion industries like
Zara, H&M.

Primark Pestle analysis
It is a helpful framework in order to get insight about the broad external environment of
the company. Therefore, it is required to prepare strategy after understanding market
competition, political interferences and need for economic contribution.
Factor Impact
Political  Political factors
include Tax
regulations,
Policies, Tax
Reforms, Tariffs
etc. These all are
the factors which
can affect Primark
business in UK
(Vojvodić,
Martinović and
Pušić, 2020). The
company is in the
position where they
have to fulfil the
customer needs
every time but due
to change in
different policies
and strategies they
fail to deliver the
right amount of
products to the
consumers in the
market.
 Some tariff trade barriers
may hinder the company's
business. For example the
company is operating in 13
countries and different
policies of the countries
can affect the business.
 The Brexit policy affecting
the business in the
European Union which
lowers down their
performance.

Economic  Economic factors
include minimum
wage rates,
Inflation, Cost of
living, Credit
availability etc.
Primark has to be
very smart with
their decisions
because of the
sudden growth of
the inflation rates
the products price
can go up higher
and they can loose
certain amount of
the customers.
 Due to the reason that, the
product rate will be high
and the consumers will
not be in the position to
buy the company's
product and they will face
huge losses due to this in
the market (Rodriguez,
and Boyer, 2018). For
example, The company
should focus on increased
borrowing cost in UK it
will increase in price and
decrease in profits for the
company.
Social  social factors
include Health
consciousness,
Population growth
rate, Age
distribution, Health
and safety.
Primark has its
huge customers
base from UK
(Gupta, Dawar.
and Goyal, 2018).
they are relying on
these customers
more because these
are the one from
 According to the PWC
report 65% UK shoppers
are loyal shoppers.
Primark should avail this
opportunity and close its
ties and establish
connection to their
customer. As the
company is selling fast
fashion clothing to fulfil
the demand of customers.
It create a positive impact
on the company and into
the market.
 Primark has capabilities
to make changes in their

which Primark
sales are generated.
products to be effective in
to market by facing huge
competition.
Technological  Technological
factors include
innovation and
Development
technologies.
Several
developments like
IOT, Artificial
intelligence, etc. In
2021 the
Technological
growth plays a
important role in
the company's
development.
 Few years back
Primark was facing
poor customer
experience due to
their technological
barriers. but now
the company is
going upwards in
the technological
market by
providing their
customer best
service due to their
new technologies.
For example
 The primark has the
capabilities to use right
technologies for right
safety concerns. The
company has operated in
the Ireland with the
Penneys Gift card. It was
a great start of the
company to grow
digitally in past years
(Koponen, Julkunen and
Asai, 2019).
 Along with this, now the
company comes with
many discounts, schemes
and offers which shows
that the company have
positive impact on
technology. They are
growing on websites but
lacks in providing online
shopping experience to
the customer.

Primark embrace
advancement is
helping them to get
their technologies
to grow on next
level.
Environmental  Environmental
issues include the
effect of
surrounding
environment and
technology
aspects. These
include disposal
wastes, energy etc.
The companies
which have a huge
market are facing
these issues Waste
Degradation and
Waste
management.
 Primark use sustainable
impact on the company as
they focus on waste
management system. Also
the company is
committed to use
renewable resources. The
company maintain brand
name by contributing in
pollution free
environment.
Legal  Legal factors
include Quotas,
resources,
imports/Exports
etc. Primark legal
Sector is not so
strong they are
indulged in many
frauds and
scandals like
 The company needs to
encourage the legal
obligations in order to
secure great market. It is
required to put positive
influence on the company
in the eyes of law. The
company provides all the
rights to their employees
regarding pays, working

Christmas scandal
etc. Many Primark
workers have taken
action against their
upper authorities
the legal areas or
aspects of the
company should be
applicable for the
reputation and
growth of the
company in the
market (Lawrence
and at.el., 2021).
The legal factors
for example
Priamark is using
health and Safety
and work Etc Act
1974, Equality Act
2010, Food
Retailing
Commission
[FRC]2004.
hours and compensations.
CONCLUSION
The report has concluded that Swot and Pestle analysis are helpful in order to gain
insight about internal and external factors. It is necessary to find what market forces are
impacting on company's operations to take better decisions. These impact could be in terms
of technology, competition, government and internal functions like profitability, opportunities
and weaknesses. The report has shown that, the chosen organisation needs to work on their
weakness by undertaking opportunities and make fuller utilisation of resources. Therefore,

the company needs to analyse the market situations first which will help in beating
competition.

REFERNCES:
Books and Journals:
Gupta, S., Dawar, V. and Goyal, A., 2018. Enhancing the placement value of professionally
qualified students in marketing: An application of the analytic hierarchy process.
Academy of Marketing Studies Journal, 22(3), pp.1-10.
Herlache, D. and et.al., 2018. A cross-cultural negotiation role-play for sales classes. Journal
for Advancement of Marketing Education, 26(Special Issue on Teaching Innovations
in Sales Education), p.3.
Holopainen, T.,and et.al., 2018, July. Sales competition as education method–the case of the
European sales engineering team competition. In International Conference on
Applied Human Factors and Ergonomics (pp. 64-75). Springer, Cham.
Khan, M.A. and Ebner, N. eds., 2019. The Palgrave handbook of cross-cultural business
negotiation. Springer International Publishing.
Koponen, J., Julkunen, S. and Asai, A., 2019. Sales communication competence in
international B2B solution selling. Industrial Marketing Management, 82, pp.238-
252.
Lawrence, J.M.,and at.el., 2021. Salesperson dual agency in price negotiations. Journal of
Marketing, 85(2), pp.89-109.
Rodriguez, M. and Boyer, S., 2018. Developing Tomorrow's Global Sales Leader: Adapting
to Cultural Differences Utilizing Role Play. Journal for Advancement of Marketing
Education, 26.
Vojvodić, K., Martinović, M. and Pušić, A., 2020. The Relevance of Business Negotiation in
Building Competitive Advantage for Croatian Micro Enterprises. InterEULawEast:
journal for the international and european law, economics and market integrations,
7(1), pp.47-63.