Primark case study

8 August 2016

Strategic Choices •Porter’s generic strategy theory ? analyse how Primark implements ‘cost leader’ strategies •Changing perception/acceptance of cheap clothing (e. g. mixture of high street and designer clothing) ? public perception of fast fashion and cheap clothing •How Primark’s is different from their competitors ? maybe own research of price comparison, organisational competences, identify some unique organisational capabilities Section 2. Supply chain management •Characteristic of a supply chain and main challenges ? name some of the manufacturing partners and the characteristics of the relationship •outsourcing (type of strategic alliances), control system, pull supply chain strategy ? the way supply chain is controlled, quality assurance, implementation of ethical policies, -Auditing of suppliers (article 1) •Buying process – head office design, license to manufacturer, buying finished products ? introduce what processes are used to make a garment •JIT – ?? Features of the strategy ? inventory, warehousing, (de)centralising of warehouses etc. (Not sure if info is available, but we will have it as an interview question)

Articles http://www. primark-ethicaltrading. co. uk/ Section 3. Retail spaces •Location strategy ? where and why, analysis of the surroundings. Tend to locate in town centres? •Flagship store ? importance of having flagship stores –Oxford street •Visual merchandising ? reasons behind the ordering in the store (fast impulse purchasing… ), how stocks are presented, managed, replenished (seasonality of products) •Online expansion-> Slower when compared to other clothing retailers (H&M etc). Currently only selling through ASOS Articles http://www. retail-week.com/companies/primark/value-fashion-giant-primark-starts-selling-online-through-asos/5049675. article http://www. retail-week. com/companies/primark/primark-wants-to-be-online-but-says-business-model-doesnt-work/5045996. article Section 4. International retailing •Link to international product life cycle (slide 7) -> expansion into Europe. Primark sales down in 2011 in UK (article 2) could explain further expansion into Europe? •Classification of global retailers (slide 11) ? no such thing as global retailer but international expansion strategies can be explained •Simpson and Thorpe’s PLIN Model (slide 21)

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