d.

Competitive stance

Primark is one of the biggest selling clothing retailers in the UK. Primark offers a wide range
of products and all of its products come under five broad categories i.e. women, men, kids,
home, and beauty. Primark pursues a cost leadership strategy to offer consumers low and
affordable prices. This strategy is used by the company when the company sells its products
at a lowest price than of the competitors which are Mothercare, Select Fashion, M&S, New
Look and etc. This strategy is also used when the company operates in the similar market. It
has little to no advertising costs, and most of its products are made in countries such as
Bangladesh, Pakistan, India, and China. These countries offer tremendously low labour costs
that eventually enable Primark to sell its products at low prices. Likewise, selling a lot of the
same items requires the company to place large orders with factories and suppliers which also
enables it to benefit from economies of scale to keep the prices low.

g. Assess whether the company should grow, retrench or consolidate the product

Primark should grow. This is because Primark undoubtedly has an opportunity to grow
further in the UK and Ireland. The UK offers fantastic prospects for expansion and it is
evident that Primark focuses on further growth in the country. In fact, the biggest Primark
store in the world is in Birmingham, England. Its current performance in countries such as
France, Belgium, and Italy is very strong and demand for its products is on the rise as well
(Halliday, 2020). It also has plans to open new stores in the USA. In addition, Primark
operates in twelve countries across Europe and the United States. Therefore, growing and
operating in other countries particularly in both Eastern and Western Europe is worth
exploring. Likewise, exploring emerging countries is also a good idea.

i. Explain whether the current competitive stance of your company’s product

line/range/SBU should be changed, maintained or abandoned all together?

The current competitive stance of Primark’s product line should be maintained. This is
because Primark is one of the biggest selling clothing retailers in the UK. A number of
customer surveys finds it as the most famous brand in the UK in terms of affordability,
cheerfulness, and good value for money. Many people buy its product line because of bargain
prices. Primark’s performance in some of the EU countries is fantastic. Primark offers a wide
range of products and all of its products come under five broad categories i.e. women, men,
kids, home, and beauty. Most of the products fall in fast fashion which entices consumers to
purchase an array of items. In fact, many consumers buy the same products when the first
ones show wear and tear.