MBA600 Capstone: Primark's Environment and Competitive Advantage

This report provides a comprehensive analysis of Primark's business environment, focusing on both its internal and external factors. It begins with an introduction and an overview of Primark, an Irish fast-fashion retailer. The report then delves into a detailed PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors impacting the company. Furthermore, a SWOT analysis is conducted to assess Primark's strengths, weaknesses, opportunities, and threats. The analysis highlights Primark's competitive advantages, such as its low-cost leadership and ability to attract customers during economic downturns. The report also diagnoses the sustainability of these advantages, pointing out opportunities related to rising obesity levels and the aging UK population. Finally, the report concludes with a discussion of strategic opportunities and risks, emphasizing Primark's value proposition and its ability to attract customers. The report references several academic sources to support its findings.

Internal and external
environment analysis of
Primark
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Introduction
 It is vital for business performing an external analysis as the data collected
would show whether any scopes are existing for development and expansion
that could exploit and reap the advantages.
 Strengths as well as weakness are considered internal factors of the
business, whereas opportunities as well as threats are considered as external
factors of the organization.
 Primark has been selected as the case study organization.

A brief overview of the organization
 Primark is one of the Irish fast fashion retailer. It is headquartered in
Dublin as well as a subsidiary of ABF.
 Arthur Ryan found the first store of the organization.
 Primark provides several products consisting of newborn as well as
clothing children, men’s and women’s wear, accessories as well as
footwear. In addition, beauty products as well as confectionary are
offered by the company (Hoffmeyer et al. 2016).
 The organization has more than 350 stores across the world and
considered as one of the largest retailers across the world.

Analysis of the external environment
using proper theories and frameworks
 PESTLE analysis of Primark
 Political factors
 Government organisation or attitude
 Political stability or instability
The Brexit saga has caused several uncertainty for the business like
Primark having operations in Europe. Some of the organizations like
Primark have benefited.

Contd.
 Economic factors
 Economic development
 Inflation, rate of interest and different monetary policies as
well as
 Consumer confidence

Contd.
 Social factors
 Income distribution
 Demographic changes
 Changes of lifestyle
 Fashion changes
 Labour/ social mobility
 The organization needs to focus on several social factors like
mentioned above that can be helpful to gain competitive
benefits.

Contd.
 Technological factors
 New inventions in the market as well as growth
 Technology transfer rate
 Life cycle as well as speed of technological obsolescence
 Changes in information technology

Contd.
 Legal factors
 Tax policies
 Safety regulations
 Employment laws
 Competition regulations
Environmental factors
 Environmental regulations as well as promotions

Analysis of the internal
environment using proper
theories and frameworksThe macro environment is considered as the general layer of business
environment and includes broad environment that have an impact of the
organization in the industry.
SWOT analysis can be helpful to analyse internal environment of Primark
(Hoffmeyer et al. 2016).

Analysis of Internal analysis of
Primark
 Strengths
 The core strength of the organization offers cheap clothing that
enables the brand overtaking the Acadia group (López et al. 2017).
 The financial crisis as well as subsequent recession as cash has
strapped the customers flocked due to low prices.
 It results the organization obtaining successive revenue development
as well as probability.

Contd.
 Weakness
 Primark suffers from perception of customers, which is basic
brand lead it to face young as well as upcoming fashion
brands.
 Primark relies that it depends on the UK market completely
that produces more than half turnover of the organization.

Contd.
 Opportunities
 Rising obesity levels can present a gap market scope for the clothing
retailers who caters to the plus-size customers .
 It has ventured into the market of the USA with more than 10 stores