ECONOMICS IN BUSINESS

Economics for the Business Environment



Economics for the Business Environment

Introduction

Retail industry is one of the most revenue generating industry. The healthy competition that has always exited amongst the rivals has helped the individual firms to further push their limits for a better performance. Therefore, as a result, some of the most capable and strong companies have always been known to emerge in the industry. One of these includes Primark. Known as an Irish clothing brand, this retailing firm has been one of the successful and high revenue generating company in the region. Primark is a subsidiary of the British food processing company known as Associated British Foods (ABF). Founded in the year 1969, the company has a total of 273 stores now with customers all over the world. Primark is currently operating in a number of countries that include the United Kingdom, the Netherlands, Spain, Portugal, Germany, Belgium, Austria and Ireland with 38 stores or shops branded as Penneys. Hence, it will be fair to say that since its establishment in 1969, the company has only expanded the size of its business and improve its performance. However, the overall economic set back that hit the markets all over the globe had its impact on Primark too. The aim of this paper to conduct an economic analysis of the competitive strategy, GDP growth and the company's overall performance and how all these aspects were affected by the economic setback.

Discussion

The fact that clothing business is one of the most competitive businesses in the recent times takes away the convenience of easy competition and few rivals. Nevertheless, Primark has emerged to be one of the most successful frims. A review of the performance of the company in the last decade or so will further prove of how Primark has been able to withstand the hurdles in the way amd the competition it faces.

Performance with Respect to Its Competitors

Primark aims to achieve the status of “the prime mark” its customers and consumers think of whenever they require “chic and cheap” clothing. The company that does business with the name “Penneys” in Ireland has about 220 or more discount department stores in the UK, Ireland, and Spain and in various other states in Europe. The company caters the fashion-conscious market. It offer products including childrenswear, menswear, womenswear, lingerie, accessories, footwear, and household textiles (Perry, & Towers, 2009, pp.380). This is an obvious fact that any company operating to cater the fashion business is bound to face a tough and rigorous competition. In a similar context, Primark always have had a wide range of competitors and rivals in the market who either offer some or all the similar products offered by the company.

It must be noted that business strategy to introduce and open shops in the countries with a strong and booming fashion industry is very wise. Nevertheless, the initial challenge that Primark faced in terms of competition was to offer to the target market a first impression strong enough to steal ...