Primark Stores Limited: Low-cost Strategy and Sustainability Initiatives

Description

Primark was a low-cost, fast-fashion clothing retailer headquartered in the United Kingdom. The company’s low-priced clothing enticed consumers, but it also attracted criticism for exploitative labor practices in the low-cost economies where Primark’s manufacturing was outsourced. However, Primark believed that it created jobs in low-cost economies, and its low prices were the result of efficient initiatives such as no online presence and limited advertising. Experts suggested that the absence of an e-commerce division was a strategic mistake. In October 2019, the company’s chief executive officer was challenged with synchronizing Primark’s low-cost strategy with its sustainability initiatives and deciding on the company’s online presence.

Learning Objective

This case is intended for undergraduate- or graduate-level courses in business strategy, strategic marketing, and business ethics. After working through the case and assignment questions, students will be able to ·determine whether strategy and sustainability can be congruent with each other; ·critically analyze implications of strategy on an activity map of a firm; ·understand when an organization can be considered transnational; and ·identify the challenges experienced by transnational organizations when they have a supplier base in low-cost countries.

Keywords

activity map exploitative practices fast fashion low-cost economies online-retailing vs. physical stores Sustainability transnational organization value-chain analysis