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Primark Essay

1855 Words8 Pages

Part One:

Penneys©, or Primark© as it is referred to on an international level has certainly progressed rapidly from it’s humble Irish roots developed in 1969. In 2014, Primark produced a very healthy balance sheet which is a coveted award for any business. According to the ABF Group’s Accounts (2014), store expansion in Northern Europe have increased by 77% since the previous year with sales 17% ahead of last year . Ultimately the pinnacle of the report was the company’s unveiled plans to expand to the American market. In an article published by The Independent, Chesters (2014) refers to the words of the CEO of Ted Baker©, Ray Kelvin who states; ‘If our strategy is to be a global brand then we need to be in the US’ . So with a list of other European retail failures before the brand, will Primark gain a prime market share of the largest and most lukrative retail market in the world or will it simply perish like its presuccessors?

The first part of this assignment will focus on Primark’s potential in the US market by adapting the PESTEL and Porter’s Five Forces analyses. The industry attrictiveness is generally regarded as the level of ease of creating profits proportional to the risks imposed. PESTEL is an …show more content…

It can be defined as a country’s ability to produce goods and services over time. Currently, this lies at a modest 3.91% for 2015 according to the Bureau of Economic Analysis (2015) and there has been an increase of 0.25% from 2014 . The main advantages of economic growth for businesses are business confidence, capital investment increases and more investment in technological investment. Another factor which is extremely persuasive is the low interest rate in the US. The rate of 0.25% has remained constant since late 2008 according to Global-rates (2015). Other countries such as Canada and the UK have higher interest rates, both which are 0.5% whereas Australia’s rate is 2%

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