Stakeholders of Primark (Stakeholder analysis)
This is an in-depth and critical analysis of the stakeholders of Primark (Stakeholder analysis). Stakeholders are all the people and organisations who have something to gain from Primark’s products, services, or actions. They may also lose something if it does poorly. They include but not limited to employees, customers, suppliers, competitors, and pressure groups.
Internal stakeholders of Primark
Employees of Primark
Employees keep a business running. If a company is small, it may have just a few employees. On the other hand, if it is a large one, it may have thousands of them. Primark is a famous fashion retailer. It has over 65,000 employees in 14 countries and the list is gradually growing (Primark, 2022).
Employees are very important internal stakeholders of Primark as without them it cannot run its operations. On the other hand, they also have a lot to gain from the company. Apart from salaries, and association with the brand, many of Primark’s managers are promoted internally as a recognition of their hard work and commitment to the company.
However, Sweney and Sarah (2022) report that Primark is phasing out several store jobs and reorganising the store management structure. This may result in the loss of around 400 jobs in the UK. Primark’s decision has been influenced by the rising cost pressures as claimed by the company.
Leadership team of Primark
Primark’s CEO, directors, and senior department managers play a big role in devising its strategies for the future. They are very interested in the success of the company and hold a high level of power making them very important stakeholders.
External stakeholders of Primark
Customers of Primark
Customers are the most important external stakeholders of Primark. As a retailer, Primark has a responsibility to them. If a certain item is not available, then customers are likely to be unhappy. They are a great source of feedback as well. Therefore, Primark has a massive interest in keeping them happy.
Suppliers of Primark
Suppliers are key to the success of Primark. The only way it can run its business is if there are people/organisations producing the clothes for it. Therefore, the suppliers of Primark must be reliable, and efficient.
Suppliers include manufacturers, designers, and anyone else who contributes to the creation of Primark’s products. They may also include the companies that transport goods from the source of raw materials to the stores. In fact. As a fashion retailer, Primark relies on several different types of suppliers to manufacture its products.
If some suppliers are unable to keep up with demand, it may become a big problem for Primark. Or if some suppliers increase their prices, Primark will also have to increase its prices. This can have a negative impact on its sales.
Primark works with over 900 factories globally. These are the production sites of the suppliers which represent over 95% of Primark’s products (Primark, 2022). However, the company was accused in the past of not rigidly monitoring the safety and quality practices of some of its suppliers.
Competitors of Primark
Primark is a very successful company in the fashion retail industry. Its competitors are the companies that sell similar products as it does. The most notable competitors are Inditex, H&M, Gap, TK Maxx, Sports Direct, Uniqlo, Forever 21, Kohl’s, J.C. Penny, and Macy’s. In addition, there are many online retailers such as Boohoo and Misguided also put a lot of pressure on Primark.
However, Primark’s operating costs are much lower than those of most of the competitors which enable it to enjoy competitive advantages. Other differentiating factors are store size, rapid turnover, low prices of products, and an efficient supply chain (Villanueva, 2020). However, it is worth mentioning that Primark is falling behind its competitors in digital adaptation.
Other external stakeholders of Primark
There are some other external stakeholders of Primark which can impact on it. For instance, governments, pressure groups, and local communities which have varying degree of power and interests concerning the operations of the retailer.
Summary of stakeholder of Primark (Stakeholder analysis)
Certainly, different stakeholders want different things from Primark. For example, some stakeholders such as pressure groups and governments would like it to be environmentally friendly. On the other hand, others might want it to offer jobs to people with disabilities.
Compared to employees, customers are a low-cost stakeholder. Primark does not pay customers to purchase its products, whereas it must do so to keep employees in its payroll. However, it needs to provide customers with discounts sometimes to keep them happy.
To conclude, if a company wants to be successful in the fashion retail industry, it will have to face some difficult issues. And one of them is understanding the stakeholders and satisfying them. If it knows who they are, then it can create a strategy to satisfy their needs. From the above analysis, it is clear that Primark understands it stakeholders very well; however, there are still some areas of further improvement.
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Other relevant articles are:
Marketing mix of Primark (7Ps of Primark)
PESTEL analysis of the fashion retail industry in the UK
Last update: 18 May 2022
Primark (2022) About us, available at: https://www.primark.com/en-gb/about-us (accessed 17 May 2022)
Sweney, M. and Sarah, B. (2022) Primark to cut 400 managers to offset rising costs, available at: https://www.theguardian.com/business/2022/jan/20/primark-to-cut-400-managers-to-offset-rising-costs (accessed 18 May 2022)
Villanueva, J. (2020) Primark sales drop 75% while competitors try to speed-up their digital transformations, available at: https://www.forbes.com/sites/julianvillanueva/2020/07/03/primark-sales-drop-75-while-competitors-try-to-speed-up-their-digital-transformations/?sh=33b338b8539a (accessed 18 May 2022)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.