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ISM - Primark

This document discusses Irish clothing retailer Primark's expansion into the US market. It provides background on Primark's founding in 1969 and growth to over 290 stores across Europe. The main strategic issue is Primark's plan to enter the US market, starting with stores in Boston in 2015 and Philadelphia in 2016. The document analyzes this expansion using the Uppsala Model of internationalization and by assessing the country attractiveness of the US market in terms of risks, opportunities, and size. It concludes that Primark is well-positioned for success in the US due to its on-trend low-cost fashion positioning.

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Ratri Ika Pratiwi
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200 views

ISM - Primark

This document discusses Irish clothing retailer Primark's expansion into the US market. It provides background on Primark's founding in 1969 and growth to over 290 stores across Europe. The main strategic issue is Primark's plan to enter the US market, starting with stores in Boston in 2015 and Philadelphia in 2016. The document analyzes this expansion using the Uppsala Model of internationalization and by assessing the country attractiveness of the US market in terms of risks, opportunities, and size. It concludes that Primark is well-positioned for success in the US due to its on-trend low-cost fashion positioning.

Uploaded by

Ratri Ika Pratiwi
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 17

Amirul Khair

Dhinda Trijayanti Vitriani


Ratri Ika Pratiwi
Salena Nur Adinda

Overview
Company Profile
Main Strategic Issue
Expanding to US
Theoretical Application

Management Implications

12
4

168

34

19
41

COMPANY PROFILE

Irish clothing retailer, branded as Penneys in Ireland.


Founded by Arthur Ryan, in June 1969.
Offer a diverse range of products at the low cost end of the market.
More than 290 stores across Europe.

Firm Specific Advantages (FSAs)


Superior
store fit

Less
Advertisement
Needed

Economic
Pricing Policy

Cheaper
products,
latest
fashion

Main strategic issue


Expanding to USA
Theoretical Application

Uppsala Model

Assessing Country Attractiveness

https://www.youtube.com/watch?v=NGWbSv2NY7M

Expanding to USA
First open in Boston on September 10, 2015
Its second US store will open in the King of Prussia mall in Philadelphia
in November
Brand and price positioning will be critical, as will good execution on
product and in-store environment
The prices are about 20% below Forever21, 33% below Old Navy and
close to 40% below H&M

Uppsala Model

First gained experience of their domestic markets


1969
First Store
in Dublin

Opening another
4 store in one
year

4 years in
domestic
market, moves
to nearby market

Uppsala Model
Began to operate abroad in a nearby market, and then slowly
penetrated far away markets
2006, Spain

1973, moves to UK
2006, expanding to Europe

2008, The
Netherland
2009, Portugal
& Germany

2013, Austria

2015, expanding to US
2014, France

Directly established wholly owned or majority-owned operations

Assessing Country Attractiveness

- Country Risks
- Market Opportunities
- Industry Opportunities

Country Risks
Economic Risks involved
- Sharp rise in economic growth for second quarter (up to 3.7%)
- Reported to be 3.7% up to 2.3%
- Strong domestic demand
- Consumer spending at 3.1% (expected: 2.9%)
Source: Reuters

Market Opportunities : US Retail Industry


Two-third of the US GDP comes from retail
consumption
Total retail sales in US $22 Trillion in 2014.
Total annual U.S. retail sales increased by 4,5%
between 1993 to 2015

Industry Opportunities

Management Implications
Primark most likely will be success in US
- It is well placed for the first start
- Their products are following the latest trend
- Very good price proposition

THANK YOU!
ANY QUESTIONS?

Refferences
http://www.primark.com/en/about-us/about-primark
http://www.ft.com/cms/s/0/af863b3a-56cb-11e5-9846-de406ccb37f2.html#axzz3lQyukeaV
http://www.ft.com/intl/cms/s/0/1621d92e-3721-11e4-8472-00144feabdc0.html#axzz3lQyukeaV
http://www.independent.ie/business/primark-pounces-on-us-this-week-with-boston-store-31508481.html
http://www.standard.co.uk/business/market-report-primark-sales-and-profits-to-double-with-us-entry-say
s-broker-a2918661.html
http://www.verdictretail.com/primark-to-expand-outside-europe-for-first-time-with-us-entry/
http://www.irishexaminer.com/business/primark-sales-up-13-ahead-of-us-market-entry-341804.html
http://www.irishtimes.com/business/retail-and-services/can-primark-succeed-where-a-host-of-other-overse
as-retailers-have-failed-1.2344778
http://www.bbc.com/news/business-27122815
http://www.primark.com/en/about-us/about-primark
https://en.wikipedia.org/wiki/Primark

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