STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Overview of the Company

The company that has been selected for the topic is Primark Stores Limited. Primark Stores is a subsidiary of the Associated British Foods, who are engaged in the operations of the Departmental Stories. The company has the ownership of the 232 departmental stores that provide products such as the household textiles, footwear, menswear, children's wear and women's wear. The company has its headquarters in Republic of Ireland and in the city known as Dublin. The strongest market of the Company has been the United Kingdom. This is the reason why the detailed discussion regarding the performance of the company would be based on United Kingdom. However, the company has operations in other countries that include Ireland, Spain, Netherlands, Portugal, Germany and Belgium. Therefore, all the issues related to the Strategic Management will be discussed in detail.

Description of the Retail Industry

According to the Boston Consulting Group, there are going to be 3 billion internet users globally by the year 2016. The UK is having a lead in this regard because of the 8.3% share of the online GDP. The retail sector is experiencing a paradigm shift because the digital economy has produced an impact on the British Shopping habits. In such cases, the application of new business models is required. Around several years ago, the shops were analysed on the basis of their size that included a criteria sales per square ft. Though, there is no concept of sales per sq feet online. This also does not include the sales per page where there can be infinite number of pages at zero cost. In fact, the other factors that are also not included for incurring costs are on-site conversion rates, the lifetime value of the consumer, the cost of customer acquisition, time spent on site or average sale per visit. The retail sector has also faced an adverse impact of the lower disposable incomes, increased rates, strict parking regimes and the establishment of the mega shopping sectors.

Need for a Strategic Change for Digital Environment in 2014

The company is planning a strategic change in order to have the best preparation for the year 2014. It is important for the company to explore maximum options for their marketing and sales as well. This is certainly a vital need of any retail organization these days. The retail sector is very competitive these days and those companies that are excellent in their marketing succeed in the overall industry. A strategic change is necessary for the organization as they need to be aware of their target market and also the macro environment factors that exist for them. The best marketing plan of the company can only be prepared when the awareness of all the factors would be there to a very large extent. The scope for the company in terms of online marketing is quite high. The reason is that there are large numbers of people who use ...