Icts role in primarks operations strategy Essay

Icts role in primarks operations strategy - Essay ExampleThis typography discusses the operations strategy of Primark Stores Limited, a fast panache retail company that currently operates in Ireland, coupled Kingdom, Portugal, Spain, Belgium, Netherlands and Germany. Primark is owned by the diversified British giant, Associated British Foods (ABF) and as at the end of 2011 had 232 stores spread in continental Europe . In 2010 Primark beat Marks & Spencer and ASDA to become was UKs largest clothing retailer by turnover, with sales of 3,043m. Primark sells a range of appearance items targeted at people under 35 years former(a) who atomic number 18 fashion-conscious. It is identified as the retailer that offers the lowest prices on the high street. Primark is a player in the relatively young retail apparel manufacture known as fast fashion. Fast fashion refers to the strategy where retailers count on speed of production and adoption to current and emerging design trends to marke t place their merchandise. While fast fashion may be heaven to buyers it can be disastrous to retailers who cede to keep changing their inventory rapidly if they are to capture their fashion conscious target market. This yet does not prevent the industry from being very profitable. Consider this in the apparel industry, fast fashion companies have surpassed traditional rivals in growth by seizing their market share. Furthermore, fast fashion leading typically earn higher profit margins than their old-guard competitors, averaging 16 per cent, versus 7 per cent for the typical specialty-apparel retailer. (Sull & Turconi, 2008, p.5). However, to break in comprehend Primarks industry and resulting strategies we shall first analyse the industry using Porters quintuple forces. 2.1. Five Forces Analysis of Primarks Industry The strengths of Porters five private-enterprise(a) forces has an effect on costs, prices, investments and other factors needed to compete thus they affect the ave rage level of profitability for a wedded industry (Porter, 2008). This implies that these five forces have a direct correlation with the industry participants profitability. Using this line of suasion one can therefore state that a firms industry structure is a major factor that determines an organizations competitive strategy (Laudon & Laudon, 2009). The first operose force is competitive rivalry. The UKs retail fashion industry is according to Mintel (2005) is more consolidated than the rest of Europe with the upper side five UK retailers account for almost 45% of sales. Secondly, hobby from the effect of 2008 recession on consumer disposable incomes, the industry is not a basic need category and as such has continued to experience boring growth. All the above attributes are symptomatic of industries where intensity of competitive rivalry is great (Porter, 2008). Another strong force in Primarks industry is the threat of substitutes largely as a result of the following three characteristics (1) the garments sold in fast fashion are not durable (2) Primarks offerings are low-cost and (3) the cost of switching from one retailer to the other is very low. These three traits make it