Primark's International Business: China Market Entry Strategies

This report provides a detailed analysis of Primark's international business strategy, with a specific focus on its potential entry into the Chinese market. The report begins with a company profile and history of Primark, followed by an examination of the e-business environment, including digital market analysis and a PESTLE analysis of the Chinese market. It then explores digital business technologies that Primark could leverage. The report also covers Primark's business model, competitive advantages, and competitor analysis, including a SWOT analysis. Furthermore, it delves into potential market business strategies such as direct exporting, licensing, franchising, and joint ventures. The report concludes with recommendations for Primark's market entry strategy and a summary of key findings, providing a comprehensive overview of the challenges and opportunities Primark faces in the Chinese market.

International Business

Table of Content
1. Company Profile & History
2. E-business environment
2.1Digital Market analysis
2.2 PESTLE Analysis
3. Digital business technologies
4. Business Model
5. Competitive Advantage
Competitor Analysis
5.2SWOT Analysis
6. Market business strategy
6.1Licensing
6.2Fraternising
6.3Joint Venture
7. Recommendation
8. Conclusion
9. Reference

Profile & History of Primark

1. Company Profile & History
 Business activities done across national borders is international
business. The process of international business is the purchasing and
selling of the goods, commodities and services outside its national
borders.
 Such trade modes might be owned by the state or privately owned
organisation. The process of international trading is that to purchasing or
selling the goods, commodities and services outside its national borders.
 In which the organisation explores trade opportunities outside its
domestic national borders to extend their business opportunities.

2. E-business environment
 Present study will be based on the company Primark which planning to
open new store in the china market.
 However study will also going to discuss about the company
competitors and some Strategies that company can adopt to sustaining
in the long term market.
 Primark is the republic and Irish fashion retailer store which is
headquartered in Dublin.
 Further study will going to presents the market entry strategies for the
company and identify their macro and micro factors to analyse the
actual competition level within the market structure.

2.1 Digital Market analysis
 Expanding business into the new market is the kind of very effective
process for the business growth.
 To get entered into the new industry it required a systematic and
disciplinary process to assess the potential opportunity and strategy.
 Before entering, Primark should analyse the china market to measure
the competitors positioning and customer needs and wants, lifestyle,
behaviour etc.
 Primark is the well known clothing retailer company in UK which
also planning to open 10 more stores as its international expansion
supported a 17 percent increase in full years sales.
 and make better strategies to grab the attraction level of the
customers.

2.2 PESTLE Analysis
 China is one of the developing country in across the world. It also
known for its highly advanced techniques and creative thoughts which
represents the leading product or services growth in the market.
 The main reason of companies for choosing to enter into the china
market is that size of the market is huge, low cost availability of labours
and the potential of growth.
 For these reasons Primark also wants to open its fashion store in the
China market (PESTLE Analysis of china, 2015).
 In order to make their existence, company need to go through from the
actual conditions of the environment by adopting the model of Pestle
analysis into the study.

Political External environment factor
Government Regulations
 Political factor is the distinct external factor of the business
environment that company has to analyse before entering into the new
market first time.
 Political factors helps to more understand about their political,
governmental policies and regulations of the particular place.
 Such as China having both formal and informal rules, which company
needs to abide to stay its business into long term.
 Present China's government more focused on the development of E-
commerce systems.

Economical External environment factor
 From past few years, China economy got excellent success in the
market or in GDP growth as well. It reflects that, for Primark it is the
beneficial to make their business profit more easily in market of
china. It also affect the business into more appropriate manner.
 Economic environment of China is very good for running business
because of stability in educated employees, Low labour cost, stable
economic stability.
 Besides, China is also good for fashion industry where people are
more attractive towards the trendy clothes and always ready to try
some new fashionable clothing products.
 It is beneficial for the cited firm to get entered into the market. The
negative effect of economic factor are uncertainty of inflation and
down in the market.

Social External environment factor
 Social changes plays the most crucial role in the China fashion
market.
 Due to changes in peoplelifestyle, color fashion trend people get
influenced towards the new market performance.
 Social factor is one of the most essential factor that company needs to
understand within the market.
 Social factor get influenced from several factors such as new
technologies, different regional and cultural differences etc.

Legal External environment factor
 Ethics and compliance are important focus areas for the big
brands and they are working actively in the direction.
 Many of the labour in china engaged with the fashion retail
industry.
 Primark should has liable to followed the legal structure of the
country if they wants to exist in market for long term.
 Besides, environment law also affect the overall fashion industry
if company fails to full fill the legal implications imposed by
government.

Environmental
 Environment and sustainability is very much important for all the
country. For that, country make strict laws for those who wants to
make business in their own countries.
 Fashion industry or companies should always careful about the
carbon footprints and always dealing with environment friendly
products.
 Primark should always make sure about their product and services
and ensure they should not be harmful for any people.
 Company ensure and aware about that weather itsservices or
products affect the society.
 Besides, company also needs to invest in environmental
development in order to enhance the market image and attract
number of customers towards the company product or services.