Primark’s-Entry Strategy into Australia
Primark’s-Entry strategy into AustraliaIntroductionPrimark was opened by Arthur Ryan in the year 1969 in Dublin, Ireland as Penneys and today it over 270 stores in nine countries, is Europe’s leading fashion retailers. It operates mainly in the European market including Austria, Belgium, France, Germany, Ireland, Portugal, Spain, Netherlands, the United Kingdom, and Italy. They recently ventured outside the European market into the United States in 2011 and recently opened a store at Boston last year. Primark provides cheap and fashionable products. The products may lack the durability, but its customers prefer them to be fast and disposable. Employing over 48,000 people, the company has grown fast and successfully. Primark strives to provide their consumers with on-trend products that can be accessed quickly in the retail environment.Primark is one of the various retailers of inexpensive fashion clothing first started in UK. There is numerous rivalry associated among competitors. For the year to 12 September, 2009, Primarks sales jumped by 20%. Its profits were up by 8% to pound 252 million. The company has acquired the nicknames of Primarni or Pradamark because of its ability to sell catwalk fashion at rock bottom prices.Primark has a tightly defined target segment of consumers in the below 35 age group. Cost leadership is the main strategy which Primark has adopted and entered the market in UK as it offers fashionable clothing at very affordable prices. Organizations can for the most part accomplish more than ordinary rates of benefits in two routes: by establishing cost leadership or through establishing product leadership.
MarketsPrimark adopts a successful business model which aims at providing the latest looks without digging a hole in your pocket. Primark is prominent mainly in the continent of Europe. It expanded rapidly within the United Kingdom in the mid 2000s. Primark bought the Littlewoods chain which was a sports betting company. They retained 40 of its stores, sold the rest and developed the 40 stores as Primark stores. Primark opened its first store outside the UK and Ireland in Madrid, Spain and continued to grow in the other regions in Europe. Though concentrating mostly in the European market, Primark in 2015, ventured to the United States, opening their first store in Boston. As it was success, Primark looks at further expansion in the United States. It was a relatively easy expansion into the United States, as they share a culture and linguistic similarity. With the trade laws also similar, Primark made an impact in the Boston market. Feeding off on its success from there, Primark expanded into Philadelphia and Connecticut.It operates on a non e-commerce platform and model which stands by their unique selling point (USP) that is, customers prefer coming to the store’.