Primark Case Study: Macro-Environmental Factors and SWOT Analysis

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BUSINESS AND BUSINESS ENVIRONMENT
PRIMARK

 The macro environment is the environment which is external
to the business and uncontrollable for the management
(Business Dictionary, 2019). These macro environment
include various factors such as political, economic, social,
legal, environmental, and natural factors.

Positive impacts of the factors of
macro environment
 The favourable changes in the laws and regulations which is included
in the legal factors of the country help the business in increasing its
sales and revenues.
 When the restrictions regarding the business and operations of the
company are removed or reduced by the government, the company
earn more profits.
 The positive attitude and behaviour of customers towards the company
help the management in earning customer loyalty and brand
awareness.

Negative impacts of the factor of macro
environment
 The continuously changing needs and preferences of the
customers include huge amount of capital for marketing its
products and services.
 The technological changes also require capital for bringing the
changes in the company in order to keep the current position
in the market.
 The changes in climate and other environmental conditions of
the country in which the company is operating its functions
affect its business.

 The political factors of Primark include political stability
regarding the operations of the company and attitude of the
government towards the company.
 The economic factors of Primark include unemployment rate,
inflation rate, interest rate, education level, labor costs,
business cycle stage, type of economic systems, government
intervention, etc.

PESTLE ANALYSIS

 The social factors of Primark include demographics of the lifestyle changes,
fashion changes, populations, and culture of population, attitudes, class structure,
and other factors.
 The technological factors of Primark include changes in technology which effect
competitions and the strategies of marketing and production. These factors
include changes in products offering with the help of mobile technology changes,
the rate of changes in the technological environment of the fashion industry.
 The legal factors of Primark include a law of discrimination, employment law,
regulations related to the competitions, tax policies, and other related laws.
 The environmental factors of Primark include uses of renewable energy,
environmental pollution, recycling, and attitude of customers towards green
products, weather, and other laws.

 Strengths- Primark has a large customer base which results
in increased sales of the company. The company has large
market coverage which sells its products and services in more
than 7 countries. Primark has low advertising costs and
effective presence all across Europe along with 300 stores.
 Weaknesses- Primark has low overall profit because of the
slow economic growth of the EU. The quality of products and
services is degrading due to the options of manufacturing by
outsourcing.

 Opportunities- There are various opportunities for improving
the network coverage of the company in the countries such as
India, South Africa, Middle East, etc. for Primark which will
increase its sales. The increasing demand for sportswear
brings another opportunity for Primark to widen its areas of
the market in Europe.
 Threats - The increasing competition in the fashion industry
creating major threats for Primark. The growth of the
company is dependent on the economy of the EU because all
the stores of the company are situated in Europe.

P6 EXPLAIN HOW STRENGTHS AND WEAKNESSES
INTERRELATE WITH EXTERNAL MACRO FACTORS
 By introducing new stores in the market of Europe in different
cities, Primark can get a competitive position in the market.
 Primark can widen its market reach for its customers by
choosing both the online and offline stores and thus the sale
can be increased.
 Different nations and cities are selected by Primark for
marketing their products and services by using various
marketing tactics.