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Do Primark have a competitive advantage over FCUK?

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Do Primark have a competitive advantage over FCUK? Introduction In this investigation my aim is to find out if Primark has a competitive advantage over FCUK. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. To have a competitive advantage a business must have a good relationship with suppliers, a good reputation with customers or innovative ideas. To find out who has a competitive advantage I will make and hand out several questionnaires to young people who follow fashions. I will also look on the internet at any existing information on both Primark and FCUK, for example high street stores copying designers. Furthermore I will look at fashion trends and which store follows them most. French Connection targets young adults with its strong brand image and distinctive cool, contemporary style. The collections offer fashionable apparel with a sense of sexy sophistication. Clothing is made with interesting fabrics with exclusive detailing and is marketed at moderate prices. Collections include lingerie, outerwear, casual wear, business attire, denim, accessories, shoes, watches, eyewear, and fragrance. Primark is the destination for cheap, chic fashion. Many of the key seasonal trends can be found at extremely affordable prices. ...read more.


Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers. I want to find out where people spend more money. My theory is that people are more likely to shop at Primark and spend more money there because it is cheaper and people are more likely to buy more things. However FCUK add value by having a brand name people think of designer good quality goods with FCUK whereas Questionnaire 1. How often do you shop at Primark? ...read more.


Evaluation The people I asked where all women who follow trends. This is because they are likely to shop at Primark and FCUK; therefore they will be able to answer the questions in my questionnaire. My results show that people on average shop at Primark a few times a month whereas the most common number of times people shop at FCUK is a few times a year. I believe this is because they cannot afford to shop at FCUK as often as there prices are as much as 10 times higher. Also people spend on average between �61 and �70 at FCUK where as they only spend �21and �30 at Primark. People spend more money at Primark; therefore they are less likely to shop there as often according to my background a top at Primark costs around �8 whereas a top from FCUK coats around �38. Therefore people will be able to buy more things from Primark as it is good value for money. More people shop at Primark as it has a good reputation with its customers, their products are cheap and good value for money as they have a good relationship with suppliers. Also their products are demanded therefore Primark have a competitive advantage over FCUK as according to my survey they don't give good value for money. ...read more.

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