SWOT ANALYSIS OF PRIMARK STORE
Primark is a premier clothing company in UK it’s headquarter is located in Dublin, Ireland, Primark is operating more than 230 stores because of its success they reaches countries in Germany, Spain, Portugal and Belgium. Primark offers a variety of clothing for men, women and children they also offer ladies accessories and cosmetics. Primark is known in UK for its brand “Penney” as the flag carrier of the company. Primark starts in 1969 in Mary Street and in just a year they open four more stores in Dublin Ireland, in 1971 because of its remarkable market acceptance Primark made another milestone in opening eleven more stores in Ireland and Northern Ireland. In 1973 they have already had 18 stores in Dublin and in that same year they decided to expand in Great Britain, in May of 2006 they also opened their branch in Spain and in December of 2008 in Netherland. In November of 2009 in Germany and on December of 2009 in Portugal, by 2010 of November they have opened their stores in Las Palmas and its second store in Netherland and in El Mirador and their latest store opened in December of 2010 in Germany. In total there are 232 Primark local and foreign stores in UK and European countries. Considering the figures and success of Primark stores we can conclude the following SWOT Analysis;
Strength of Primark - Primark has 156 local stores in UK that has been very successful in penetrating the market for their products and 76 in other locations. They cater to customers according to their budget since they offer medium to high quality and affordable clothing lines; this is basically the open secret of most clothing lines in UK if they can offer a variety of clothing that can favor and satisfy costumers depending in their preferences. Strength of Primark is their Ethical Trading Initiatives (ETI) to provide healthy atmosphere not just for customers but also for their employees. They have also provided full benefits for their workers and employees that is why in return they have served the company in full performance. Their supplier and supply chain management is also the strength of the company when they follow a certain code of conduct in United Nations Charter, Chapter 9 article 55 so that they follow strict compliance seriously and regularly to deliver only the best supplies for their mutual benefits.
Weaknesses of Primark – there have been only few negative records of their weaknesses but if there are one this may include some of the controversies they have been facing in the last few years of operations that in their factories they have been using child labor that contradicts their ethical trading initiatives or ETI. There are also reports that they are not always using quality materials on their clothing although this issue was addressed in 2010 that using sandblasting is already banned to take care of the health of their workers. The BBC trust media has also confirmed that the issue of Primark of using young children has been fabricated and so they apologize with the issue but it has created negative effects in the image of the company, currently the issue is cleared because of the extensive investigation. There are also issues of devaluating workers rights but it will soon be cleared. One of the major weaknesses of Primark is their advertising and promotion that can also be a threat to the company.
Opportunities of Primark – the company has many opportunities because they have already established their clothing lines and other products, their companies can also invest in other business and expand their product line such as fashion accessories, sports apparel and shoes, general merchandise and other products. They can also expand easily in other European countries or they may also invest in other geographic locations such as Asia and America where fashion and clothing is also accepted. They can also sort into acquisition or merger to further strengthen their company or they can also purchase companies that have a strong market impact. Positively they can also offer fashion consultancy in their company to other parts of the world. All this can be considered as their grand opportunities knocking on their doors.
Threats of Primark – as written earlier one of their weaknesses is their advertising and promotion that can pose a threat in their company if there are new players and other clothing companies who can penetrate the media through fashion advertisement and promotion. This can weaken clothing companies like what happen to Esprit de corps who have been weaken by other brand because they discontinue their promotion and advertisement, they have been over confident in the success of their brand. The competition of Zara and H&M has already been an obvious threat to their company because they have valued promotion and advertisement although both of these stores caters to higher market class. Their advantage is that they can also offer class C products while Zara and H&M concentrate on class A and B market but still, Primark must continue to promote and advertise their products for their continuous success.
Credit:ivythesis.typepad.com
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