Strategic Analysis of Primark USA 2018

By: Patricia Nanjekhe

Primark is an Irish clothing and accessories retailer operating in UK, US, Ireland, Germany, Spain, among others. It operates in the low-cost end of the market which has made it familiar to shoppers seeking the latest fashion items at modest prices. The US fashion and clothing industry is a prominent oligopoly having major players Nike, Adidas, Zara, H&M, among others. However, various macro factors affect the growth of Primark and using a PESTLE analysis, we describe how external factors such as the new enacted laws by the state of California affect its profitability, how trends like growth of the plus size population in US can influence its revenues, among others. Through the SWOT analysis, we identify Primark’s major strengths, weaknesses, threats and discover major key drivers and opportunities for growth. In addition, Primark being a low-cost clothing brand faces intense competition in the market and through a Porters Five Forces Analysis, we describe how competition has affected the growth of Primark and the points at which its most intense.

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