Strengths- Its cost leadership and its supply chain and logistics processes.
Its stores are located strategically. Its stores were without frills.The 807 stores of Woolworths were closed in phases. But Woolworths was more a casualty of its flawed strategic planning than the economic recession. For the year to 12 September, 2009, Primark’s sales jumped by 20%. But Woolworths was more a casualty of its flawed strategic planning than the economic recession.Even in the children’s clothes and school uniform segment it soon lost its leadership to retailers like Asda and Tesco. Primark capitalized on the need of lower cost fashionable clothes during the current recession. A separate team has been set in UK that travels all over the world to identify new fashion trends and seek cheaper supplies.
It was also using debt to open new stores. Read on for a breakdown of the company's mission and vision statements and its core values. (Pride, Hughes, & Kapoor 2009)Woolworths’, the high street retail chain that collapsed in 2008, was founded in 1909.
By January 2009 all 807 Woolworths stores in UK were closed. (Fifield 1998)Even in the children’s clothes and school uniform segment it soon lost its leadership to retailers like Asda and Tesco. Its strategy was like groping in the dark. This raises naturally a high barrier to entry. The company hardly spent anything on branding. For the year to 12 September, 2009, Primark’s sales jumped by 20%. In 2005 it acquired six stores from “Allders”. Cost leadership is attained by giving the same products at lower prices than competitors. Because of the mismanagement of its value chain activities, Woolworths soon lost its competitive advantage.In 2008 the financial crisis brought a severe credit squeeze. We strive to minimise this impact wherever we can. It was opening too many stores on debt; it had no target segment and finally it was dealing in too many products. Lack of having brands with high brand equity may hurt its profitability in future. The aims and objectives of Primark is to provide the public with good, quality products at a cheap and good for value price to get the message of just because our products are cheap it does not mean they are not a good quality and fit for their purpose to the public. For sustaining this cost leadership strategy the company has to maintain high efficiency levels and tight cost controls on a continuous basis. The retailer faced intense competition from supermarket chains like Sainsbury, Tesco etc. Its strategy was like groping in the dark. Companies can achieve more than normal rates of profits in two ways: by establishing cost leadership or through establishing product leadership. It has made a series of acquisitions.
By January 2009 all 807 Woolworths stores in UK were closed. The company is fighting off its reputation of being an unethical company driven solely by the lust for more profits. PRIMARK OBJECTIVES AND AIMS To provide good quality products for the public; we want the public to realise we are a good company and just because our products are cheap, it doesn't mean that they are rubbish.
This led the retailer into administration in November 2008, just before the peak Christmas season. All efforts to salvage it failed when its lenders, GMAC and Burdale, recalled their loans. Woolworths pursued successfully this ‘cost leadership’ strategy for many years after that. The business sells clothing, shoes and home ware such as curtains, pillows/cushions, rugs and simple bathroom equipment e.g. 207 of these stores closed two days after Christmas on 27th December 2008. toilet seats. 138 of these stores are in UK and 38 are in Ireland. Strategic planning addresses the following three questions: Bargaining power of suppliers- The bargaining power of suppliers is not that high.
On the competitive front it has tough competition in the form of Marks & Spencer, Debenhams etc.Opportunities- The opportunities for discount retailers are always high, especially for high street retailers like Woolworths.
It lacks fixed assets to fall back upon.As far as its marketing strategy is concerned it has responded to the 4Ps of the marketing mix in the following ways:As far as its marketing strategy is concerned it has responded to the 4Ps of the marketing mix in the following ways: Most of its stores are on rent. It lacks product leadership as well as cost leadership. The remaining stores were also closed by 6th January 2009. Primark mission and vision statements help define what the company is working towards and how it remains to be one of the most successful companies in the world.