Primark Stores Limited: Low-cost Strategy and Sustainability Initiatives
(7 pages of text)
Case (Pub Mat)
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.
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.
United Kingdom; United States, Large, 2019
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