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Company Name: Primark Module: Strategic Management Bachelor Business Studies DT364/4 Lecturer: Dr. Sharon Feeney Names of all Group members: Caolán Kennedy: C14501073 Adam Zayed: C14564553 Shane Anders: C14333431 Cian Daly: C12492042 Aisling Stewart-Lord: C14335696

Fiona Maher: C14361501

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Contents Declaration...................................................................................................................................12 Abstract........................................................................................................................................13 List of Figures...............................................................................................................................14 2.1 Porters five forces................................................................................................................14 2.6 Solberg’s nine strategic windows.........................................................................................14 3.1 Old vs New renovation of Primark store.............................................................................14 4.1 Experience curve..................................................................................................................14 4.2 High end vs Low end fashion (Primark)..............................................................................14 5.3 Social media blogger............................................................................................................14 5.6 Quality/Fashion perceptual map..........................................................................................14 6.1 Costa coffee within a Primark store.....................................................................................14 7.1 Hardware of EPOS system...................................................................................................14 7.2 S-Curve model of diffusion..................................................................................................14 7.3 Diffusion in RFID technology.............................................................................................14 12.3 Primark’s organizational chart...........................................................................................14 List of Tables................................................................................................................................14 5.1 Strategies for deterring entry of rivals.................................................................................14 5.2 Strategies for managing rivalry............................................................................................14 7.1 Impact EPOS on marketing strategy....................................................................................14 List of Appendices........................................................................................................................14 Section 1:.......................................................................................................................................16 Strategic Leadership: Managing the Strategy-Making Process.....................................................16 1.0 Introduction........................................................................................................................17

1.1 A short account of Primark’s history of the company, and the evolution of its strategy......................................................................................................................................17 1.2) Current image, the mission and major goals of Primark.............................................19 1.3) A preliminary analysis of the internal strengths and weaknesses of Primark and the opportunities and threats it faces in its environment...........................................................19 1.3.1 Threats:............................................................................................................................19 1.3.2 Opportunities:.................................................................................................................20 1.3.3 Weaknesses:.....................................................................................................................20 1.3.4 Strengths:.........................................................................................................................20 1.4) Primark’s CEO and an evaluation of his leadership capabilities................................21 Section 2:.......................................................................................................................................23 External Analysis: The Identification of Opportunities and Threats.............................................23 2.1) The five forces model to the industry in which Primark is based. This model will tell you about the nature of competition in the industry.............................................................24 2.1.1 Threat of New Entrants..................................................................................................24 2.1.2 Bargaining Power of Buyers..........................................................................................25 2.1.3 Bargaining Power of Suppliers......................................................................................25 2.1.4 Threat of Substitutes.......................................................................................................25 2.1.5 Rivalry among existing firms.........................................................................................26 2.2) This section will look at changes taking place in the macro-environment that might have an impact, positive or negative, on the industry in which Primark is based. It will also illustrate what these changes are & how they may affect the industry.......................27 2.2.1 Political & Legal Environment......................................................................................27 2.2.2 Sociocultural Environment............................................................................................28 2.2.3 Technological Environment............................................................................................28 2.2.4 Environmental Factors...................................................................................................29

2.3) Strategic groups that exist within Primark’s industry. This section will also show how the intensity of competition differs across these strategic groups?.............................30 2.4) The dynamics of the industry in which Primark is based and how innovation has shaped competition..................................................................................................................30 2.5) The stage of its life cycle Primark is in its industry and the implication of this for the intensity of competition both now and in the future.............................................................31 2.6) Primark is in an industry that is becoming more global. This section will also discuss the implications of the change for competitive intensity.......................................................32 2.7) The impact of national context as it pertains to the industry in which Primark is based. Does national context help or hinder your company in achieving a competitive advantage in the global marketplace?....................................................................................33 Section 3:.......................................................................................................................................34 Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability.............34 3.1) Primark’s competitive advantage and disadvantage in its primary industry.............35 3.1.1 Selection of Products.......................................................................................................35 3.1.3 Ability to keep up with new trends................................................................................35 3.1.4 Unethical..........................................................................................................................35 3.1.5 No online store for shopping..........................................................................................36 3.2) Evaluation of Primark against the four generic building blocks of competitive advantage: efficiency, quality, innovation, and responsiveness to customers. This section will also help understand the performance of Primark relative to its competitors...........36 3.2.1 Efficiency..........................................................................................................................37 3.2.2 Quality..............................................................................................................................37 3.2.3 Innovation........................................................................................................................38 3.2.4 Responsiveness to Customers.........................................................................................39 3.3) The distinctive competencies of Primark........................................................................40 3.3.1 Ability to produce at competitive prices........................................................................40

3.3.2 Staying with Fashion trends...........................................................................................40 3.3.3 Logistics............................................................................................................................40 3.3.4 Social media strategy......................................................................................................41 3.4) What role have prior strategies played in shaping the distinctive competencies of your company? What has been the role of luck?.................................................................41 3.5) The strategy Primark is pursuing now building on its distinctive competencies? Are they an attempt to build new competencies?.........................................................................41 3.5.1 Cost leadership................................................................................................................41 3.6) The barriers to imitating the distinctive competencies of Primark.............................42 3.7) Is there any evidence that Primark finds it difficult to adapt to changing industry conditions? If so, why do you think this is the case?............................................................43 Section 4:.......................................................................................................................................45 Building Competitive Advantage Through Functional-Level Strategy.........................................45 4.1) Efficiency-enhancing practices Primark are pursuing.................................................46 4.1.1 Economies of scale:.........................................................................................................46 4.1.2 Learning effects/ Experience Curve:.............................................................................46 4.1.3 Marketing:.......................................................................................................................47 4.1.4 Information Systems:......................................................................................................47 4.1.5 Human Resource Strategy:............................................................................................48 4.1.6 Infrastructure:.................................................................................................................48 4.1.7 Materials Management and Supply Chain:..................................................................48 4.2) Quality-enhancing practices Primark are pursuing......................................................49 4.3) Primark’s practices designed to enhance innovation....................................................50 4.4) Practices designed to increase responsiveness to customers.........................................50

4.5) Evaluation of the competitive position of Primark in light of answers to questions 14 in this section. Explain what, if anything, the company needs to do to improve its competitive position.................................................................................................................52 Section 5:.......................................................................................................................................54 Building Competitive Advantage through Business-Level Strategy.............................................54 5.1) How Primark differentiate their products in relation to their competitors................55 5.2) Primark’s strategy toward market segmentation..........................................................55 5.3) Primark’s distinctive competencies. This section will incorporate the information on functional-level strategy in the previous section to answer this question. Is efficiency, quality, innovation, responsiveness to customers or a combination of these factors the main driving force in your company?....................................................................................58 5.3.1 Social Media and use of Bloggers..................................................................................58 5.3.2 Logistics............................................................................................................................59 5.4) The generic business model Primark is pursuing. How has it formulated and implemented a set of business-level strategies to pursue this business model?..................60 5.4.1 Cost leadership:...............................................................................................................60 5.4.2 Supply chain Strategy:....................................................................................................60 5.5) What are the advantages and disadvantages associated with your company’s choice of business model and strategies?...........................................................................................61 5.5.1 Advantages:......................................................................................................................61 5.5.2 Disadvantages:.................................................................................................................61 5.6) The strategic group that Primark fit into.......................................................................62 5.7) How Primark could improve their business model & strategies to strengthen their competitive advantage.............................................................................................................63 Section 6:.......................................................................................................................................64 Business-Level Strategy and the Industry Environment...............................................................64 6.1) The type of industry environment in which Primark operates....................................65

6.2) Discussion how Primark has attempted to develop strategies to protect and strengthen its business model..................................................................................................66 6.2.1 Product Proliferation......................................................................................................66 6.2.2 Price Cutting....................................................................................................................67 6.2.3 Price Signalling................................................................................................................68 6.2.4 Price Leadership.............................................................................................................68 6.2.5 Non-Price Competition...................................................................................................68 6.2.6 Partnership......................................................................................................................68 6.3) New strategies that Primark would be advised to pursue to increase it competitive advantage..................................................................................................................................70 6.3.1 Knowledge........................................................................................................................70 6.3.2 Costing Model..................................................................................................................70 6.3.3 Cost Reduction................................................................................................................70 6.3.4 Long-Term Investment Strategy....................................................................................70 6.3.5 Partnerships.....................................................................................................................70 6.4) Primark will be able to maintain its competitive advantage in the future..................71 Section 7:.......................................................................................................................................72 Strategy in High-Technology Industries........................................................................................72 7.1) The dominant project technology used in the industry in Primark is based.............73 7.1.1 EPOS System...................................................................................................................73 7.3) The majority of customers purchasing Primark’s products are early adopters. This section will also discuss the strategic issues that the company is likely to face in the future ....................................................................................................................................................76 7.4) The dominant technology in Primark’s industry diffuse and what drove the speed of diffusion.....................................................................................................................................76

7.5) The dominant technology in Primark’s industry on its S-curve. This section will also touch on alternative competing technologies developed that might give rise to a paradigm shift in your industry?.............................................................................................................77 Section 8:.......................................................................................................................................79 Strategy in Global Environment:...................................................................................................79 Primark is already doing business in other countries:..............................................................80 8.1) Primark is creating value of lowering the costs of value creation by realising location economies, transferring distinctive competencies abroad, or realising cost economies from the economies of scale.....................................................................................................80 8.2) How Primark implements a very rigid strategy in response to differences among nations.......................................................................................................................................80 8.3) The cost pressures and pressures for local responsiveness in the industry in which Primark is based.......................................................................................................................81 8.4) The strategy Primark is pursuing to compete globally.................................................81 8.5) Primark’s major foreign market that is serves & the mode of entry it has used. Why Primark is active in the below markets and not others & the advantages and disadvantages of using the mode of entry..............................................................................82 Section 9:...............