Strategic Management Report: Primark's Business Strategy Analysis

This report provides a comprehensive analysis of Primark's business strategy within the fast-fashion industry. It begins with an overview of Primark's current business model, focusing on its low-cost pricing, rapid fashion trends, and expansion strategies. The report then assesses the relevancy of Primark's current strategies in the face of a changing market environment, including consumer preferences and competitor actions. It examines how Primark adapts to these changes, such as through its social media presence and focus on younger consumers. Furthermore, the report discusses potential changes in the company's strategy, like ethical practices, product development, and brand image. The conclusion highlights Primark's success and provides insights into how the company can maintain its competitive advantage. The report utilizes various sources to support its findings.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Current business strategy of Primark......................................................................................1
TASK 2............................................................................................................................................2
2. Relevancy of Primark strategy in changing environment.......................................................2
TASK 3............................................................................................................................................3
3. Change in strategy in fashion industry....................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Primark is engaged in delivering its services to fashion industry. This organisation is
growing in market at faster rate and making huge number of profit through various expansion
strategies along with implementing good profitable strategies ion marketplace (David, 2011). In
this particular report various need of changes in current strategic plan of Primark is discussed
along with the relevancy of current development plans in marketplace is also evidenced.
TASK 1
1. Current business strategy of Primark.
Primark is the company engaged in dealing with the customers with fast changing fashion
trend in fashion industry. The company is developing strategies in order to increase the
profitability of firm through availing changing fashion in the marketplace. Parent company of the
Primark is Associated British foods. Company is leaving behind its competitors Zara, H&M
from their cheap prices and faster fashion trends. Organisation is continuously developing
various strategies in order to act responsibly to the changing environment and consumers
preferences in market (Engert, Rauter and Baumgartner, 2016). Firm has shown a huge growth in
capturing market share for 2004 to 2014. In world Primark is counted in top 19 companies
engaged clothing an footwear retail market. This venture is showing huge expansion rate through
establishing about 312 locations in all over the world like in cities Italy, Spain, Ireland, United
States, London etc. The organisation is making profit through attracting large number of
consumers by the its low pricing strategies in market. Firm is making huge amount of profit
through lowering production cost in processes.
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Source 1: Primark Faster, cheaper fashion. 2017
Firm is engaged in delivering its services to development of sustainable strategies in
practice in order to work ethically in business environment. Organisation is continuously
planning new marketing strategies in through accomplishing business entity visions like
increasing customers satisfactions from their products. The firm stores are designed in such way
that it provide an easy and comfort shopping experiences to the customers. The company is
adopting when it gone, its gone policies in their stores in order to offer limited products
reordering. This helps in increasing efficiency of the production and other operation of enterprise
through managing effectively supply chain system (Freeman, 2010). The company is also
developing strategies like rock bottom prices in order to attract more consumers towards brand as
compared to the other competitors like Marks and Spencer, Zara, H&M. This helps in increasing
profitability of firm through their various promotional tools like low prices, highly adaptive
system to implement change in practice, stores located at major street in cities worldwide,
quality products, represent brand as iconic fashion at affordable prices.
TASK 2
2. Relevancy of Primark strategy in changing environment.
The current marketing strategy of Primark is relevant with the changing environment.
The company can work in compliance with higher profit making development plans in changing
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market environment successfully in order to enhance profitability of firm the firm has to
implement some changes in strategies too in order to delivering good services to changing needs
of customers efficiently. Company is providing an faster fashion trend changing to the young
consumers of venture. These young customers are engaged in communicating brand image
through social networking suites like Instagram through uploading new fashion pictures by
wearing clothes of Primark and uploading it in Instagram, Facebook. Company is highly
focusing on the changing trend of market and working in compliance with that in order to
achieve higher satisfaction level of clients in marketplace (Kasemsap, 2014). This helps in
gaining competitive advantage in highly competitive market. Zara a big competitor of Primark is
also engaged introducing new fashion trend in market but the prices of Zara is much higher than
Primark. Which helps in developing higher sale of organisation as compared to Zara as the
company is adopting reducing cost strategies in process. Organisation is working in compliance
with the production process based on men activities which works at low cost of production with
cheaper labour availability in marketplace and involved in providing large number of
employment in country. So, assessing the purchasing capability of consumers it can be
concluded that lower pricing strategic plan of Primark is beneficial for the profitability of firm to
large extent. While developing new fashion trends in marketplace in order to expand business
and market base of Primark is another business strategies which is flourished through faster
changing customers preferences in relation to the fashion choices. Both the strategies provide
higher relevancy to the marketing strategies of organisation in order to expand business in
shorter time through making higher earning from lower cost of production and developing higher
profit margin over products.
TASK 3
3. Change in strategy in fashion industry.
Every organisation has to work in compliance with the changing environment in order to
grab various growth opportunities successfully. Organisation have to implement new changes in
strategic plans in existing marketing and development plans in order to attract customers
efficiently through delivering quality services related to the changing taste in marketplace
(Leiponen and Helfat, 2010). The firm can adopt various changes in strategies like organisation
work ethically in business environment through reducing carbon footprint of their products and
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services to the customers. Company is adopting new changing in the promotional tools and
strategies like as Primark is offering products at lower prices and they are presenting those
products in front of the stores in order to enhance bulk sales of entity. Firm can hire motivated
and skilled designer in order to develop more numbers of fashion products in order to introduce
newer fashion trends in market and be the pioneer brand in fashion industry (Reid, 2012). This
helps in increasing effectively of product development strategies and market penetration plans of
firm effectively. Firm is having great growth opportunity through developing lower cost in
operations of entity. The consumers of Primark are having mindset that the faster changes in the
fashion products leads to inefficiency and cheap quality products. So, company can adopt new
operational schemes in order to change mindset of customers and improve brand image in market
through representing brand as faster changing iconic fashion brand.
CONCLUSION
From the above report it can be concluded that Primark is making huge profit through
their marketing strategies in implementing plans in market effectively. Company is developing
various marketing strategic plans and also cost reduction plans in order to provide services to
customers at low prices with good quality. This can be achieved through utilising various
strategic plans in practices through reducing cost in processes.
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REFERENCES
Books and Journal
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
Kasemsap, K., 2014. Strategic innovation management: An integrative framework and causal
model of knowledge management, strategic orientation, organizational innovation, and
organizational performance. In Strategic approaches for human capital management and
development in a turbulent economy (pp. 102-116). IGI Global.
Leiponen, A. and Helfat, C.E., 2010. Innovation objectives, knowledge sources, and the benefits
of breadth. Strategic Management Journal. 31(2). pp.224-236.
Reid, K., 2012. The strategic management of truancy and school absenteeism: Finding solutions
from a national perspective. Educational Review. 64(2). pp.211-222.
Online
Primark Faster, cheaper fashion. 2017. [Online]. Available through:
<https://www.economist.com/news/business/21663221-rapidly-rising-super-cheap-
irish-clothes-retailer-prepares-conquer-america-rivals-should>. [Accessed on 31th July
2017].
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