Nobody downloaded yet

Icts role in primarks operations strategy - Essay Example

Comments (1) Cite this document
Summary
This paper highlights how a UK fast fashion used ICT to leverage its supply chain and convert it into a sustainable competitive advantage. An industry analysis is conducted using Porter’s five forces and then we see how Primark set up its operations strategy to remain competitive. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Icts role in primarks operations strategy
Read TextPreview

Extract of sample "Icts role in primarks operations strategy"

Download file to see previous pages This paper discusses the operations strategy of Primark Stores Limited, a fast fashion retail company that currently operates in Ireland, United 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 UK’s largest clothing retailer by turnover, with sales of £3,043m. Primark sells a range of fashion items targeted at people under 35 years old who are 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 industry 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 market their merchandise. While fast fashion may be heaven to buyers it can be disastrous to retailers who have to keep changing their inventory rapidly if they are to capture their fashion conscious target market. This however 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 leaders 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 better comprehend Primark’s industry and resulting strategies we shall first analyse the industry using Porter’s five forces. 2.1. Five Forces Analysis of Primark’s Industry The strengths of Porter’s five competitive forces has an effect on costs, prices, investments and other factors needed to compete thus they affect the average level of profitability for a given industry (Porter, 2008). This implies that these five forces have a direct correlation with the industry participants’ profitability. Using this line of thought one can therefore state that a firm’s industry structure is a major factor that determines an organization’s competitive strategy (Laudon & Laudon, 2009). The first strong force is competitive rivalry. The UK’s retail fashion industry is according to Mintel (2005) is more consolidated than the rest of Europe with the top five UK retailers account for almost 45% of sales. Secondly, following 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 slow growth. All the above attributes are symptomatic of industries where intensity of competitive rivalry is great (Porter, 2008). Another strong force in Primark’s 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) Primark’s offerings are low-cost; and (3) the cost of switching from one retailer to the other is very low. These three traits make it ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Icts role in primarks operations strategy Essay”, n.d.)
Retrieved from https://studentshare.org/management/1394213-icts-role-in-primarks-operations-strategy
(Icts Role in Primarks Operations Strategy Essay)
https://studentshare.org/management/1394213-icts-role-in-primarks-operations-strategy.
“Icts Role in Primarks Operations Strategy Essay”, n.d. https://studentshare.org/management/1394213-icts-role-in-primarks-operations-strategy.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
zm
zmueller added comment 9 months ago
Student rated this paper as
At first, I thought 11 of pages is too much for such a topic. But now I see it could not be done smarter. As the author starts you see the difficulty of the issue. I’ve read all at once. Terrific document

CHECK THESE SAMPLES OF Icts role in primarks operations strategy

Operations Strategy

... 0. Introduction This paper will discuss the operations strategy process for three companies that operate in the UK’s Quick Service Restaurant (QSR) industry, namely: McDonald’s, Subway and KFC. The paper shall focus on the market-led operations strategy process placing emphasis on the use of Hill’s methodology. The paper begins with business description and SWOT analysis of each of these three fast-food chains. From the SWOT analysis and business background information the paper shall identify the key operations performance objectives for each company and relate them to their competitive factors. The paper shall then conclude by identifying which internal performance objectives that McDonald’s, Subway and KFC need to focus... on in their...
11 Pages(2750 words)Coursework

Operations Strategy

...to integrate different production process, accounting methods or even corporate culture. These three are basic important reasons why mergers fail even if there is a promising motive behind the integration process. On the other hand, it is believed that the most valuable asset that a company can have is its human resource. Thus, if these employees are not motivated to take their new roles in the acquiring firm, the best of them might leave. Thus, creating a significant failure for the newly integrated firms. Understanding the weaknesses of operations strategy from the point of view of merging companies gives essential backgrounds that the business itself is a complex area for exploration....
10 Pages(2500 words)Essay

ICTs in Global Context

...and technical resources, to facilitate in its global presence, and helping in ggrowth of a new entrepreneurial class with innovative corporate practices. If the FOSS model is applied then any country’s government has control over its ICT infrastructure, in terms of security, support and development and cost thereby increasing development and employment means. Also the government has open standards and open formats now, allowing for international co-operation. Theorists have different views about the effect that ICTs have on politics. Hyperglobalists think that due to ICTs political power becomes transferred into the hands of those which do not deserve it....
7 Pages(1750 words)Essay

Operations strategy 2

.... Curving its market niche to luxury travels alone has been an important competitive strategy for British Airways considering that most clients appreciate when they travel in style and are always valued. In other words focus on luxury travel alone is another major reason why BA has been successful as it has managed to compete effectively with major budget airlines on various destinations through this strategy. References Cowling, A & Lundy, O 1996, Strategic Human Resource Management, London, Routledge. Hill, T 2000, Operations Management Strategic Context and Managerial Analysis, 2nd Ed. Basingstoke, Palgrave. History and heritage, British Airways, Retrieved November 28 2012 from...
4 Pages(1000 words)Essay

Operations Strategy

...? Operations Strategies and Management of Samsung Inc. and the Coca Cola Company Introduction Operations strategy of a company is the collective strategies that the company management put in place in order to realize smooth flow of the company’s operations and production processes thereby gaining a competitive edge in the market (Cadle, Paul, & Turner 2010, p. 23). An operation on the other hand entails the due processes involved in the supply of products and services by the organization. This means that the role of decision-making and related functions lies entirely in the docket of the...
9 Pages(2250 words)Essay

Operations Strategy Case Study

...OPERATIONS STRATEGY APPLE 2002 CASE ANALYSIS Executive Summary Apple began by the assignment to "change the world during technology." More specially,the company required out to make the personal computer an available and reasonable device to the mass market. The propagation of new software and hardware technology radically changed the landscape of the industry and Apple adopted a separation strategy. Software and hardware addition allowed Apple products to be additional "versatile," reliable, and better in performance (Apple Announces Corporate Reorganization 1996). Rapidly changing industry dynamics dictated Apple's competitive strategy. In essence, the intended...
20 Pages(5000 words)Case Study

Globalisation of ICTs- Positive and Negative Impacts

...of processing data at a fast speed. This saves much of the human effort. Human beings lose concentration and get tired of undertaking repetitive tasks. Machineries can perform the same task more efficiently with double speed saving much of the human effort (Ministry of Information and Communications, 2006, p.5). ICTs are increasingly linked to organisational value. But it has been criticised on a number of grounds. Research has been conducted to examine the role of ICTs in a more integrated manner. Current research has showed that ICTs have benefitted organisations in a positive way. “ICTs have value to organisational advantage” (Rastrick & Corner, 2010,...
5 Pages(1250 words)Essay

STRATEGY and OPERATIONS MANAGEMENT

...STRATEGY and OPERATIONS MANAGEMENT” Choose a private sector company and identify its generic strategy. Using evidence, discuss the key activities that underpin the chosen generic strategy The company chosen for this essay is Dell Inc. Dell, is a multinational computer manufacturing company. Dell was founded by Michael S. Dell who is currently the chairman and CEO of the company and has a market share of 11.5 percent in its fourth quarter of the year 2009 (Magee, 2010) (Refer to Appendix A to see how market share for Dell and other players changed in the US computer industry). This essay will shed light over the company’s strategy and how it aligns its...
10 Pages(2500 words)Essay

Strategy and Operations

...Strategy and Operations Table of Contents Introduction 3 Different Process Types 4 Job Order or Shop Process 4 Batch Processing 5 Repetitive Assembly line Process 5 Continuous Process 6 Project Process 6 Process Selection Flow Chart 7 Professional Services 7 Service Shop 8 Mass Services 8 Different Layouts 8 Importance of Layouts 9 The Need for Layout Design 9 Product Layout 9 Process Layout 10 Fixed Position Layout 11 Combination Layout 12 Contribution to strategic objectives 12 Performance Objectives 15 Conclusion 16 References 17 Introduction Operations management is a broad concept and it deals with several aspects. It is primarily a valuable component of management decision and...
10 Pages(2500 words)Essay

Compare Zara and Primarks operations

...is based on achieving competitive advantage through the use of different business models and unique operational strategies. The report encompasses a study of the business models followed by Zara and Primark with an identification of the key similarities and differences in the two business models and a study of the key business objectives of these two companies and their impact on the competitive advantage creation for both the companies. The report also includes a tradeoff analysis of the two companies on the basis of key operation factors like cost, quality etc. The report is suitably concluded with the recommendations given to the companies for achieving sustainable...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Icts role in primarks operations strategy for FREE!

Contact Us