Primark Porters Five Forces 2018

By: Jonathan Kush

This report discusses and analyses how the five forces of competition - buyer power, supplier power, threat of entry, threat of substitutes and industry rivalry - have all driven competition in the UK clothing and accessories industry and the impact on Primark's operations. The five forces of competition are a useful framework for organizational managers determining the factors that are driving competition in their industry and whether it is still attractive to compete in. The findings from a five forces analysis can be critical in determining whether to reinvest profits in certain markets or divest when faced with very strong five forces. While the five forces are important in helping organizational managers decide whether to invest or divest, they simply provide a starting point and are more powerful when used in conjunction with other frameworks such as Pestle, Swot, BCG or Ansoffs in helping firms like Primark decide whether to merge, acquire rivals or increase advertising spend in an effort to neutralise increased competition.

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