ipl-logo

Strengths And Weaknesses Of Primark

1156 Words5 Pages

Penneys/Primark is currently standing in a very precarious situation, its strength and resilience has been proven over 50 long years of trading and its roots are deeply embedded in European fashion. This being said however it has just ventured into the American fashion market, a turbulent industry for even the most experienced of companies. The next five years will be of integral importance to the business and the overall market development in the US will play a fundamental role in how Primark continues as a corporate entity attempting to establish itself in a competitive industry.

In a recent interview with the Guardian newspaper John Bason, financial director of Primarks parent company ABF talked about their plans for success in the US market. “There will be some things that are right and some things that are wrong,” he said. “It could be a sluggish start. The awareness of Primark [in the US] is well, well below what it is in Europe.” However, even if Bason chooses to downplay expectations, he believes …show more content…

The economy will stabilise soon and there is certainly niches that can be exploited if a company such as Primark were to cross the Atlantic and tackle the US market. Primark will have learnt from how its European predecessors fell due to overconfidence and hubris and will be determined not to make the same mistakes. “The main point about Primark is its price positioning. It is not going in as just another young fashion brand. It is going in as a young fashion brand with a very defined price edge on competitors that sets it apart. But it has all the trappings of the big stores and the feel of a more expensive fashion brand. I am sure that the likes of [US rival] Forever 21 are a bit worried." – (Maureen Hinton retail analyst at Columbine)

Show More
Related

  • Why Are So Many People Obsessed With Supreme By Jamie Clifton

    577 Words  | 3 Pages

    It is important to note that Clifton is informal in this article because he wants to explain to his audience, which are people who want to understand adolescents why they want Supreme’s goods. In a part of this article, he is criticizing people for their decisions when he says “But that's fine..even if it's just a pair of boxer shorts”. It makes the audience feel as if he is talking directly to them as if they are having a conversation where he is explaining them the reasoning behind these millennia’s choices. Clifton makes a great point at the end of the article when he says that they are riding on their “authenticity” and if Supreme keeps opening new stores, they will lose all of their credibility. He shows his readers that everything that makes it unique will soon disappear, so he inquires why they would want to buy it later

    Read More

  • How Nordstrom Microeconomic Factors Affect A Business

    971 Words  | 4 Pages

    If the limits and resources required for the development are obliged in any way, it could incite higher costs, delays, budgetary adversities and failure to meet their global objectives (Davis, 2017). In order to achieve and sustain competitive advantage, Nordstrom must manage their risks and threats effectively and coordinate appropriate productivity company wide. Nordstrom must focus security, customer experience, flexibility to guarantee competitive advantage and success. In order to succeed in international markets, Nordstrom has to keep both their global e-commerce price and divider costs relatively close.

    Read More

  • Pest Analysis Of Nordstrom

    878 Words  | 4 Pages

    The achieve success in such a dynamic apparel stores industry across various countries is to diversify the systematic risks of political environment. Nordstrom can closely analyze

    Read More

  • Sioux Empire Mall Seizure Analysis

    711 Words  | 3 Pages

    In conclusion, society is being taken advantage of by the name brands that make millions of dollars. They are targeting people that are “Brand Junkies.” The Empire Mall promotes Americans’ spending habits and takes advantage of that, especially

    Read More

  • J. C. Penney's Organizational Culture

    1033 Words  | 5 Pages

    1. Describe J.C; Penney 's culture before and during Johnson 's time in the organization. What were the attributes that Johnson changed, and how did this impact the culture and success of J.C. Penney? J.C. Penney’s culture was based on transparency and loyalty before the entry of Ron Johnson.

    Read More

  • Zara's Disruptive Business Model

    1802 Words  | 8 Pages

    Case Analysis Disruptive Business Models Markides (2006) explains that disruptive business models are strategies implemented in a company which enables it to outshine the competitors in an individual market. The disruptive model focuses on distorting the existing market and making the customers prefer the new business as opposed to the others (Magretta, 2012). Disruptive business models may include offering higher discounts, after sales services and premium products. Such a model is often sudden, and it takes over the entire market which sometimes leaves the other market players disoriented. During this time, such a company takes advantage by acquiring massive customer following and ultimately more profits.

    Read More

  • Why Is Trader Joe's A Good Retailer For International Expansion

    3328 Words  | 14 Pages

    Introduction As the world we live in today continues to flatten, new channels begin to emerge across the globe. The technological age that we live in today has forever changed they way retailing functions, creating new opportunities for international success. However, the thought of internationalization can be daunting for many retailers, especially due the large history of retailers who have expanded internationally and then failed. Although this type of expansion can be overwhelming, if done properly, the new retail format can generate a great deal of success for the retailer.

    Read More

  • Lvmh Porter's Five Forces

    885 Words  | 4 Pages

    • Customer segment needs to be targeted appropriately. Usually for fashion it is the middle/high income customers • Customer shopping experience needs to be high • Quality of products needs to be high Threat of Substitute The threat of substitutes for LVMH is moderate due to the below • Fashion and leather goods have very high product differentiation. Companies need to focus on customer demand • Customers are loyal and have also realized that there is no substitute brands when it comes to fashion • Local market fashion brands can tend to “copycat” the industry giants who have just entered the respective market • Substantial product

    Read More

  • Pest Analysis Of Victoria Secret

    1466 Words  | 6 Pages

    Victoria Secret was profitable enough in their first year, for the company to open four more physical locations, as well as a mail order catalogue. Although Roy Raymond’s policy was initially profitable, but as we will discuss in the later parts of this paper, it also had its downsides that almost led to the bankruptcy of Victoria Secret. Today, Victoria Secret is a multi billion dollar conglomerate with more than a thousand stores in more than 180 countries generating an annual income of over five billion. 2. PESTEL ANALYSIS The external environment of a company can affect everything from company policies, finances, sales, targeted customers and can be a deciding factor in whether the company remains for another season.

    Read More

  • Nordstrom's Competitive Advantage

    615 Words  | 3 Pages

    Nordstrom is usually located in shopping centers, specialty centers, and central business districts. Nordstrom also has stores in both location choices to further availability to increase its target market, who prefer shopping in these two retail locations. Nordstrom allows customers to search through multiple level stores to find exactly what they want. Nordstrom also has helpful sales floor associates to guide customers to the products they want. .

    Read More

  • Primark Case Study

    939 Words  | 4 Pages

    HR Practices of Primark Primark is clothing retailer from Ireland which has operations in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, Netherlands, United Kingdom and soon the United States. The company was founded and has its headquarters in Dublin, Ireland. It has around 51,250 employees worldwide as per the latest estimates. HR Management in the 21st Century: Challenges for the Future Recruitment and development: One of the most important challenges facing global organizations in the 21st century is building the ability to attract, recruit and retain the best talents amidst huge competition with competing organizations. In order to do so the company must create an environment where everybody enjoys working and using their

    Read More

  • Ted Baker Competitor Analysis Essay

    1251 Words  | 6 Pages

    3.0 Industry and Competitor Analysis The fashion industry in the UK, Europe and the US has several players who compete for the rich market niche. Compare to its competitors in the clothing and accessories industry, Ted Baker performs very well as evidence by its improved financial ratios e.g the EPS over the past five years. 3.1 Industry Overview The high-street fashion industry is dominated by several firms but Ted Baker is continually winning attention in that industry.

    Read More

  • Pestel Analysis Of Clothing Industry

    901 Words  | 4 Pages

    For instance, the world population is aging (OECD, 2013a), therefore, changes in demographic may be dangerous to solely teenage-oriented apparel firms based on the fact that competition for that segment is gradually diminishing (e.g. Coneen by design ltd). Nevertheless, these could be an opportunity for open and more flexible existing fashion retailers. Nowadays, customers are demanding for convenient shopping experience due to limited time in accessing or going to the market in person. Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013).

    Read More

  • New Balance Case Study

    1064 Words  | 5 Pages

    Starting as just a mail-order business with some retailers, it quickly opened new manufacturing facilities, starting with New England in the early 1980s as well as it signed contracts with other international distributors. While producing at lower costs outside the US, New Balance sold its shoes at a higher price than the average market and started to have huge sales anyways. Moreover, what makes New Balance’s operation strategy unique is that they offer their shoes in multiple widths and always have inventory in case the retailers get out of stock. This supports directly two of New Balance’s main competitive objectives being first that they want their customers to feel uniquely served by offering several widths of their shoes for different kind of feet and letting the customer not wait for the delivery of the shoes but always having inventory to push into the retail stores in case of scarcity. A good customer experience is one of their key competitive

    Read More

  • Case Study Uniqlo

    1738 Words  | 7 Pages

    In the late 1990, although the Japanese economy went through “The Great Recession” for almost an entire decade, Uniqlo focused on all those consumers who were cutting back on their spending to expand operations during this period. Uniqlo

    Read More

More about Strengths And Weaknesses Of Primark

Open Document