Business Essentials: Porter's Five Forces and Primark's Strategy

This report provides a comprehensive analysis of Primark's business strategy, focusing on its competitive advantages and market positioning within the retail industry. It utilizes Porter's Five Forces model to assess the bargaining power of suppliers and buyers, the threat of substitute products, and the impact of new market entrants. The report highlights Primark's strategic decisions, such as minimal marketing expenditure, bulk purchasing from suppliers, understanding customer demand, and low pricing strategies, which contribute to its competitive edge. It also examines Primark's positioning in the market, emphasizing its cost leadership, high-quality product offerings, and adaptation to market trends, including the adoption of e-shopping to enhance customer experience. The conclusion summarizes the key findings, reinforcing Primark's strategic approach in a competitive market environment and its commitment to customer satisfaction and brand image through CSR activities.

BUSINESS ESSENTIALS

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Porter five force analysis of Primark................................................................................................3
Assessing competitive advantage and positioning of Primark.........................................................5
REFERENCES.....................................................................................................................................9

INTRODUCTION
Business Essentials is innovative set of self-paced courses in all business areas designed to
improve the critical business skills or ability of individual working in the international market.
Helpful for company in precepts of knowledge about the competitors and customers demands or
customer choice of the product and helpful for market analysis and market trends or company gain
knowledge about competition of market and plan new strategic for innovation and adopts new
strategic for leading the market and improve efficiency of production of product.
With the help of business essentials' organization plan and implement new strategic and set
competitive advantages for the business and achieve Goal and targets of the business and company
plan for future how to manage the business client and customers In this competitive market
environment. Various other business factors adopts by organization for running a successful
business in this market scenario. In this project company adopts porters five force models and
discuss all content of five force models other new strategic like product promotion, low pricing
strategic, odd pricing for customers attraction and sales promotion of product for reduce the dad
stock problems and inventory problems through business essentials for leading the market.
MAIN BODY
Porter five force analysis of Primark
Porters five force models:-Porters five force models with Primark is helpful and important
tools and techniques for solving the organization problems with help of porters five force models
through forecasting and analysis condition of the organisation. The company stands in market and
porters five force models helps in reducing the financial risk in market.
 Bargaining Power of Supplier:-Suppliers gives very important role in production of
product with the help of raw material supply on time. Because Company maintain their
relationship for long time with supplier. It is very difficult in this competitive market
environment because the uniqueness of their product or services. Organization more focus
on supplier’s payments on time for reduces all the tread barriers between businesses (stark
2011). Suppliers must manage time of supply there goods on time to buyers for production.
Because company have more option of purchase goods at a time with low cost (Jaggia and
et.al., 2016). Primark has wide range of supplier’s base. Both local and international
suppliers of Primark. It is not depended on one particular supplier. This means Primark have
no a single supplier for supply of raw material and company obtain more raw material at law

cost and huge profit margin. Primark is more focus on cost reduction trough the local
suppliers of raw material. Company face the low cost of supplier switching to other
suppliers. This strategic the Primark increase the purchasing power as compare to other
competitors because they are obtained raw material from Primark suppliers are higher cost.
 Bargaining power of the buyers: - The Primark is the biggest retail store in UK; company
has a huge customer in UK and other market. However, given that there many players in the
industry and more much competition at the market between Primark and other competitor.
The bargaining power of Primark is high as compare to other competitors. In present buyers
is very intelligence or fast movers or more price sensitive they are visit similar shops, and
seeking the lowest price items before purchase decision and for an information and quality
cheeking out product (Uhl and Gollenia, 2016). In this competition many shopkeepers
reduce their price for customer’s retention and many are charge high cost from than losing
customers.
 Substitute product in market: - in any industry and business substitute of product is most
important part of affection of business. Substitute product usually refers to similar product
produce by other firm or other competitors same or services at market entry with low
strategic and affect the exiting player of market. Primark has strategy to reduce the risk of
substitute’s product. Primark is valuable brand from customer’s references because Primark
charges reasonable price as compared to other competitors at existing market. Company
provide a verity of discount for customers. This strategic reduce the risk of substitutes of
substitute product. It is also one of the factors faced by Primark switching through discount.
Substitute’s product produce from other competitors, despite their high price of product,
finally Primark adopts new technology like internet through this new technology company
facilities increase for customers like E-shopping. Other retailers use to traditional
technology. Then this new technology Primark earns more profit and creates substitutes for
other retailers.
 New entry in the market: - As state about, Primark have some power and strategic to fight
with new entry and covers their market. The new entry in market is further facilities provide
by Owen government for new entry. The government encourage without any cost enter and
exit in market. The policy beneficial for new entry to entry in the market (Bhaduri and
Fogarty, 2016). It is the main region of more competition between players for running a
business in growth a long period for earns money form market.

Primark’s Porter's Five forces Analysis from above the explanation:-
 Bargaining power of suppliers: - Primark have no single suppliers because it relies on
more people so there is less bargaining power of suppliers for Primark in this market
environment (Werner and Tang, 2017).
 Bargaining power of buyers: - in this competition market customer have a very wide
choice of purchasing product and switching one company to another at UK market. Primark
have other competitors in these segments. So in this context bargaining power is high and
less number of Retain customers.
 Treat of New substitutes: - there have minimum risk from other low price strategic retailers
because they are just enters in this market. Primark have there various strategic to fight new
substitutes like discount policies.
 New Entry in the market: - Treat of new entry in the market is low because the setting cost
of new company is very high for set up a new business in this exiting market.
Assessing competitive advantage and positioning of Primark
Competitive Advantages of Primark: - Primark plan strategy for increase their profit margin
through competitive advantages. Adopts different strategic as compare to other competitors of the
exiting market and gain more profit from market and changing marketplace and decision regarding.
In other words competitive advantages are beneficial for expansion of business and grown te
business compete with competitors.
1. Minimum money spends on marketing: - As it not spends high money on marketing and
advertising of its product, minimum money will be spend in this activity. Primark spends
little money on advertising or promotion because they have retained customer a specific
customer for purchase of their products (Hu and Yang, 2016).
2. Bulk purchasing or raw material from suppliers:- Primark purchase bulk quantity from
suppliers at low or at discount because it is cost effective and low price purchasing strategy

of Primark and company has strong relationship with the suppliers. Many time suppliers
supply of goods on the credit basis and company save the interest of money on the behalf of
creditors. Bulk purchasing is helpful for Primark because many time company have shortest
of raw material than suppliers supply goods on time because the Primark maintain good
relationship with suppliers.
3. Demand of the customers: - Primark will only spend money on advertisement those
products which are new. Demand by the customers and as per demands of customers
because this strategic company have those benefits like they customers are retained and they
work for company's as promoters because they are world of mouth for the company. Many
more customers are attracting by this strategic and the sales have increased and profit also
increase. This strategic boom up the company's income (Moreno-Izquierdo, Ramón-
Rodríguez and Perles-Ribes, 2016). It is only one company who appreciate their employee
of participation at administration levels.
4. Low pricing and discount price for customers :- Primark adopts low pricing and discount
pricing strategic for leading in the market and customers retention for future perceptive and
reduce the problems of customers switching or reduce the dad stock problems in the
company through discount policies and also high the sales volume of the organization or
create the rivalry between the competitors and lead the market with different marketing
strategic adopts and implement new technology in the organization Primark adopts E-
shopping technology for customers and easy purchase of product from online and company
reduce the customers purchasing time the expenditure with free home delivery for customers
(Thompson and McLarney, 2017). Many more strategic adopts by Primark and create rivalry
between competitors and leading the market with high image of brands at market and targets
potential customers or a specific segment of customers at a geographical area.
Positioning of Primark:- the strategic positioning of Primark analysis all the factors are
required that to run a successful organization in a profitability with legal documents. Primark
maintain well matched with the product positing and marketing. Its helps to Primark for leading
the market because Primark more concern with cost leadership and high quality strategic in the
market. Due to increasing the communication among retailers and the customers Primark more
focus on bargaining power of customers and customer’s retention and low cost pricing with market
leading. Company more focus on new customers' attraction with the help of existing customers

through discount policies and low cost as compare to other competitors and high-quality of product
for the customers (Jaggia and et.al., 2016). Primark is internally and externally focus on innovations
and different marketing strategic of sales promotion or reduce the inventory cost with helps of
suppliers of the exiting market scenario and achieve high positioning in the market and with low
cost leadership strategic and high market positioning of customers reach and customers choice
according customers' feedback and suggestion for the company. At recent company achieve high
positioning in the market.
Primark changed his business positioning with market trends :- According market trends
and customers demands Primark changes the business strategic with innovative technology or with
help of lasted designated cloths for the customers as per orders and demands for designing with cost
factors considered for the customers and company more focus on production cost as well as
transportation cost because they cost are high than the product cost also high so company more
focus on these factors and Primark adopts one more new technology for differentials with market
competitors is E-shopping of product on company's web sites (Primark SWOT Analysis, USP &
Competitors, 2017). Primark prepare strategic and design of clothes according geographical area
and on the be-half of market trends or choice of product.
Company more focus on customers purchasing powers and economic growth of country and
company achieve their goals through various others' activity like CSR activity or social sectors'
consideration of public because company earn profit from public than according government rules
and regulation company invest 2% of profit in CSR activity for public for increasing the brand
image in market for more customers attracting and sales promotion in public to reduce the negative
aspects of the company from public.
CONCLUSION
In this report it is concluded that Business Essentials is innovative set of self-paced courses
in all business areas designed to improve the critical business skills or ability of individual working
in the international market. As it not spends high of budget for marketing and advertising on its
product promotion. Company adopts porters five force models and discuss all content of five force
models other new strategic like product promotion, low pricing strategic, odd pricing for customers
attraction and sales promotion. Company have no single suppliers it has large number of suppliers
and there are less bargaining power of suppliers for Primark in this competitive marketing
Environment. There is minimum risk from other low price strategic retailers because they have just
entered this market. Primark have their various strategic to fight new substitutes like discount
policies. Threat of new entry in the market is low because the setting cost of new company is very

high for set up a new business in this market. According market trends and customers demands
Primark changes the business strategic with innovative technology or with help of lasted designated
cloths. The strategic positioning of Primark analyses all the factors which are required to run a
profitable business by complying with legal documents.

REFERENCES
Books and Journals
Bhaduri, S. N. and Fogarty, D., 2016. Advanced Business Analytics: Essentials for Developing a
Competitive Advantage. Springer.
Hu, Y. and Yang, S., 2016, June. The competition situation analysis of environmental service
industry in China: Based on Porter's Five Forces Model. In Service Systems and Service
Management (ICSSSM), 2016 13th International Conference on (pp. 1-5). IEEE.
Jaggia, S. and et.al., 2016. Essentials of business statistics: communicating with numbers. McGraw-
Hill Education.
Moreno-Izquierdo, L., Ramón-Rodríguez, A. B. and Perles-Ribes, J. F., 2016. Pricing strategies of
the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics. 22(2). pp.293-310.
Thompson, J. and McLarney, C., 2017. What Effects will the Strategy Changes Undertaken by Next
Plc Have on themselves and their Competition in the UK Clothing Retail Market?. Journal of
Commerce and Management Thought. 8(2). p.234.
Uhl, A. and Gollenia, L.A., 2016. Business Transformation Essentials: Case Studies and Articles.
Routledge.
Werner, C. H. and Tang, M., 2017. Essentials of the Management of Creativity and Innovation in
Education, Business, and Engineering. InHANDBOOK OF THE MANAGEMENT OF
CREATIVITY AND INNOVATION: Theory and Practice . pp. 347-364.
Online
Primark SWOT Analysis, USP & Competitors. 2017. Online. Available through: <>. [Accessed on 24th
May 2017].