4. Retail clothing company for men, women,
teenagers, and children
Founded by Erling Persson in 1947 as
women's clothing store Hennes
Business concept: “Fashion and quality at the
best price.”
Acquired Mauritz Widforss in 1968 and began
including men's and children's clothing in stores
5. Company name
then became
Hennes &
Mauritz (H&M)
H&M was
listed on
Stockholm
Stock Exchange
in 1974
Expanded into
US, Europe,
Asia, Africa,
and South
America
Currently one
of the largest
clothing
retailers in the
world
8. - Intensity of
competitive rivalry:
Threat of new
entrants:
Threat of substitutes:
Bargaining power of
supplier:
Bargaining power of
buyer：
• High
• High
• Low
• Low
• High
11. • Fast distribution network
• Distinctive business model (low inventories etc.)
• Policy of zero advertising
Strengths
• Outdated operating system
• Lack of marketingWeaknesses
14. SWOT ANALYSISSTRENGTH
Deliver on trend
fashions at an
affordable price
Efficient supply chain
and distribution
channel
Ability to adapt and
influence customer’s
shopping behaviors
Restocking store
inventories daily
Effective relationship
with customers
Collaborated with
many designers
WEAKNESS
A gap between
customer
behaviors and
brand attachments
The high cost of
maintaining
inventory in order
to respond to
changes in fashion
H&M’s largest
target market is
comprised of 20 to
27 year olds
OPPORTUNITY
Developing home
related products
H&M has
developed an
interactive online
website
THREAT
Does not have
absolute control
over the quality of
the products being
made
Cost of products
may increase due
to wage increases
around the world
15. Financial Analysis
2014 2013
Net Sales $18,022,000 $15,302,000
Gross margin % 58.8% 59.1%
Operating margin 16.9% 17.2%
Earnings per share $1.44 $1.23
Current Ratio 2.11 2.94
16. Financial Analysis
H&M is financially stable with
increasing sales
Gross margin and operating
margin decreased due to cost
of inputs
However, increasing earnings
per share is encouraging
Financial growth has allowed
for expansions and
implementations of new
initiatives
