H&M is a worldwide clothing retailer operating in over 70 countries. It has many strengths including a diverse global presence, commitment to sustainability, and strong brand recognition. However, it also has weaknesses such as a history of unethical labor practices and over-reliance on third-party suppliers. Opportunities for growth include expanding into emerging markets. Threats come from competitors and any issues that damage the company's reputation. A SWOT analysis can help H&M identify its internal strengths and weaknesses as well as external opportunities and threats to develop effective business strategies.
A critical Analysis of the famous Brand H&M.
IN this we have tried our best to cover each and every point of the H&M company, in it we cover the description, establishment, objectives, missions, goals, organizational structure, SWOT analysis, leadership, decision making of the company.
we hope that it will help you in your projects.
A critical Analysis of the famous Brand H&M.
IN this we have tried our best to cover each and every point of the H&M company, in it we cover the description, establishment, objectives, missions, goals, organizational structure, SWOT analysis, leadership, decision making of the company.
we hope that it will help you in your projects.
This report provides an analysis regarding the identification and evaluation of the strategies that H&M might adopt for increasing its investments and growth by utilizing BCG model and for prioritizing the investments by exploiting GE McKinsey, Ashridge model and the analysis from the strategic review. Moreover, for the growth of the company, among the available frameworks, the one of Blue Ocean Strategy was implemented because a free space of innovation was identified. Furthermore, H&M’s internationalization opportunities were found by assessing the attractiveness of the market through PESTEL analysis, CAGE framework and competitive characteristics. Finally, the report provides a detailed analysis for areas of internal improvements, what the company should plan for developing them and how is going to supervise the process.
This is a mini case study on Zara which was created during a marketing internship under Prof. Sameer Mathur. It includes information about the origin, marketing mix, swot analysis and what can we do next for ZARA.
H & M COMPANY PROFILE SUPPLY CHAIN MANAGEMENT H&M: Organization of Supply Cha...Ajeenkya D Y Patil
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
This report provides an analysis regarding the identification and evaluation of the strategies that H&M might adopt for increasing its investments and growth by utilizing BCG model and for prioritizing the investments by exploiting GE McKinsey, Ashridge model and the analysis from the strategic review. Moreover, for the growth of the company, among the available frameworks, the one of Blue Ocean Strategy was implemented because a free space of innovation was identified. Furthermore, H&M’s internationalization opportunities were found by assessing the attractiveness of the market through PESTEL analysis, CAGE framework and competitive characteristics. Finally, the report provides a detailed analysis for areas of internal improvements, what the company should plan for developing them and how is going to supervise the process.
This is a mini case study on Zara which was created during a marketing internship under Prof. Sameer Mathur. It includes information about the origin, marketing mix, swot analysis and what can we do next for ZARA.
H & M COMPANY PROFILE SUPPLY CHAIN MANAGEMENT H&M: Organization of Supply Cha...Ajeenkya D Y Patil
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
Founder : Erling Persson
Founded on : 4th October, 1947
Headquarters : Stockholm, Sweden
Products : Clothing, Accessories
Areas served : Worldwide
Industry : Retail
American Apparel Submit your completed strategy and change ma.docxADDY50
American Apparel:
Submit your completed strategy and change management plan. It should include all critical elements of the final project, incorporating all feedback and knowledge gained in the course.
1 Assignment:Economic Environment
In 2018 I worked in a soft drinks company where they adopted the recent technology in the production to increase the production rates and the accuracy of the quality of the products. After the introduction of the technology in the company, a large number of people lost their jobs since the tech replaced the labour and was cheaper than the manual production that involved individuals directly. The technological factors are one of the external factors that are increasingly affecting the business organization. The business changes relate to the presence and the development of technology.
The technology increases the supply of the products. The increase in the supply enables the company to keep up with the demand for the soft drinks. The technology enables the company to increase the productivity and the communication between the suppliers and the consumers. The company can cut down the waste as well as keep up with the demands due to technological advancement. The technology also increased the accuracy in production due to the machinery that was more accurate than the human labour and the company was able to cut down the waste again. The company reduced its expenditure in terms of the losses incurred due to poor production.
It is important to consider the environment while thinking about the strategy change. The supply and demand within the business affect organizational ability. The demand and the supply stimulate each other impacting the prices of the goods and services in the budget. The customer's interest in specific products exhausts the supply available and increases demand. The demand and supply of goods and services have a high influence in determining the prices of goods and services. The prices of the product are likely to fall if the supply keeps on growing and if the supply keeps on decreasing the prices are likely to keep on growing (Becker, 2017). However, with the market economy, the interest consumers, as well as the companies, produce limits product that matches the demand and the supply and it is used in determining the product development and production.
References
Becker, G. S. (2017).
Economic theory
. Routledge.
Introduction to Economics; Market Equilibrium and Market Forces
Macroeconomics: Crash Course Economics #5
2 Assignment: American Apparel
American Apparel Company is a clothing Manufactures Company. The company designs its clothing distributes and markets its products. It is situated in North America. It is one of the largest marketing companies situated in Northern America. The mission declaration of American Apparel Firm declares that the company is dedicated to high-quality yields, underling care, confines in the business and art, project and tech. The missi.
Charron 2
Charron 7
Samantha Charron
Principles of Marketing
Northern Vermont University
March 6,2021
Marketing is the key part for the success of any business and it’s very crucial for a business owner to understand which customers to target and implement strategies that will ensure winning of new customers. Environmental analysis is a strategic analysis that assists a business owner to identify internal and external environmental factors that may impact a business's ability to conduct its tasks properly. The environmental analysis is mandated to assess the business external environment to find out threats and opportunities of the business and after the evaluation, the business owners develop strategies that respond to the environment.
Executive summary
In my residential area, there is no clothing shop for youths, and Value worth clothing is a business that will fit the area. I have seen a similar business in our nearby city and I have thought of investing in the business in our area as it will be a great opportunity for my business as there is no other business that offers or sells products similar to a value worth clothing business.
Environmental analysis
The value worth clothing (Murphy, 2019) was established as a retail clothing company has evolved into the marketer of high-quality clothing and it deals with sports clothing such as cotton T-shirts, baseball caps, fleece jackets, and vests. It also deals with selling sports footwear, apparel, equipment, accessories. The value worth clothing sells clothes for both women and men and also clothes for young children for sporting and casual wear. I have decided to establish this type of business in my residential area due to the increase in demand for sporting clothing that has been contributed by the construction of an international sporting center that attracts many people all over the country and international wise (Murphy, 2019).
Marketing environment
i. Competitive forces: competition within the sporting clothing industry is very strong and counterfeited attires have emerged in the market offering cheap priced products that make other original products have challenges as customers go for cheap rated products. As a business owner, (Murphy, 2019) one has to come up with his/her strategies to ensure products are appealing to the customers. Value worth clothing has been using a product differentiation strategy to market its products to its customers. We have ensured that our products are unique from those of our competitors. We have introduced climate control clothing such as t-shirts that make athletes feel like a second skin. We also have breathable fabrics that are very crucial during the summer seasons (Murphy, 2019).
ii. Economic forces: Nationwide, many business owners and companies can experience both positive and negative economic factors in the sporting clothing businesses. During the peak phases of the business, many businesses experience more disposable inco ...
Running head PART A THE BACHELORETTE MARKETING PLAN1PART A T.docxtoltonkendal
Running head: PART A: THE BACHELORETTE MARKETING PLAN 1
PART A: THE BACHELORETTE MARKETING PLAN 7
Assignment 1: Part A: The Bachelorette Marketing Plan
July 29, 2017
Introduction
The Bachelorette L.L.C. is a company that deals in beauty products, initially female. Beauty products are increasingly becoming popular by the day among ladies (Willett, 2010). The company is a world leader, with global presence in the industry. A range of products are on offer, including hair care, color, and skin care and signature fragrances. The unmatched quality of products and consistency in customer service globally have made the Bachelorette a direct competitor of well-known brands such as Olay, Avon and L'Oreal among others (Forbes, 2017).
Based in Philadelphia, United States, with regional offices in Asia, Europe and Africa thanks to the growing market share. The company will be backed with online selling through an intuitive website, simple and secure. In addition to scaling operations worldwide, the company continues to diversify its products portfolio and recently launched hygienic products for men.
PESTEL Analysis
Political Factors
The political environment affects the business operations. More so, the success of an organization is pegged on the political climate (Kotler & Keller, 2012). The Bachelorette will be hesitant to maintain operations in politically unstable regions. Europe, Asia and Africa were keenly selected based on stability. In addition to that, the Bachelorette has had to adopt hybrid corporate approaches to accommodate the political differences (Kaser, 2013). However, the close ties between the United States and other countries have created a conducive environment for business.
Economic Factors
Economic conditions such as the inflation rate, which largely influence the interest rates and consumer's purchasing power could impact business for an international company. Since the Bachelorette operates globally, global economic cycles and may impact sales (Pride & Ferrell, 2016). In regions such as Europe, the company continues to post profits owing to the economic stability. The company is also in a good position to obtain loans locally, thanks to the well-established financial institutions in Philadelphia. The money may be used to expand the business.
Socio-cultural Factors
Consumer tastes and preferences are influenced by the local culture. The products the company offers should therefore be tailored to the different cultural and climatic conditions (Kaser , 2013). The varying and rapidly changing needs of women should be well addressed, while the desires of customers from different ethnic backgrounds and classes should be met.
Technological Factors
Technology is rapidly changing, and the beauty and cosmetics industry is no exception. Through technology, consumers are exposed to many products at the click of a button and therefore, innovation is vital to survive and remain competitive (Stevenson, 2016). Aggressive social me ...
The beauty company Glossier has gained enormous popularity among millennials and Gen-Z since its launch in October 2014. Glossier celebrates the idea of real beauty in real life, providing its customers with customized affordable luxury beauty products. As a tech-savvy company, Glossier understands the power of social media in terms of product sales and promotion. The company also aims to lay foundation for a beauty movement of real women and real beauty. The recently launched Body Hero campaign is a great example reflecting Glossier’s mission.The global cosmetics industry is led by beauty conglomerates including Chanel, Coty, Estée Lauder, Kao, L’Oréal, LVMH and Shiseido. The growing middle class, product innovation and influencer marketing are listed as the three market drivers in the industry; while affordability, counterfeits, and toxic chemicals are part of the market challenges. This marketing plan aims to help Glossier settle key issues hindering the growth of the company.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
4. 4
1.0 Company background H&M in London
Hennes & Mauritz is a worldwide company specializing in fast fashion and clothing for all ages.
in 1947, The company was established by Earling Pearson, when he opened his first store in
Sweden, starting with selling women's clothing. in 1964, he opened a shop in Norway. In 1968,
Pearson acquired the Mauritz Widfss clothing salesman, leading to the inclusion of a men's
clothing set in the product group and a change of name to Hennes & Mauritz It was registered on
the Stock Exchange of Stockholm in 1974. Not long after, in 1976, the first store opened outside
Scandinavia in London. H & M kept its expansion in Europe and began retailing online in 1998.
H & M and its related organizations operate in 70 countries with more than 3,392 stores. In 2017
H&M has 281 stores in the UK only. Currently, The H&M group includes nine clearly defined
brands; H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home, ARKET
and Afound (H&M, 2018).
5. 5
2.0 SWOT analysis
SWOT Analysis is a tool used for strategic management and strategic planning in
companies. It also helps the entity to build an effective organizational strategy and competitive
strategy. It provides information that is helpful in matching the organization’s resources and
capabilities to the competitive environment in which it operates. SWOT analysis also known as
internal analysis and external analysis. SWOT Analysis has four components: Strengths,
weaknesses, opportunities, threats. Strengths and weaknesses are the internal analysis of the
company environment while opportunities and threats are the external analysis of the company
environment (Rao, 2008).
2.1 Strength
Strength is an internal analysis that describe the positive, favorable and creative characteristic of
an entity or person. Strength in the company will describe the abilities and properties of the
organization in the operation and markets against other firms and competitors that are reported as
a result of the analysis of its internal environment. according to (DINCER, 2007), a company can
be described as a week, equal or strong compared to their competitors based on five criteria:
Relative financial structure, relative market situation, relative production and technical capacity,
relative human capacity and management effectiveness, relative research and development
potential. Looking to Apple company for example, its main strength is the brand name and logo
according to (BOGOST , 2018) Apply logo is worth 1 trillion which is the first company in USA
to achieve this (Apple Co., 2018).
2.2 Weakness
Weakness is also an internal analysis that describes negative and disadvantages characteristic of
an entity or person. Weakness in the company is referring to the limitation or deficiency of the
company capabilities, resource, and skills compared to other firms and its competitors. the
company weakness can create a serious effect on the organization's performance. financial
resources, Facilities, administration capabilities, brand image, and marketing skills can be a reason
of weaknesses” (Pearce and Robinson, 1991: 182). it is necessary for the company to determine
its weakness and try to reduce and improve them because no strategy can be built upon weaknesses.
(GÜREL, 2017). For example of the weakness, Apple products price are high compared to its
6. 6
competitors who provided the similar product with high quality and cheap price. These can affect
the sales of the company (Martin, 2016).
2.3 Opportunities
Opportunities are an external analysis that shows the chances of your business to prosper.
Opportunity in the company is a suitable time or situation that the environment gives to the
company to achieve its objects. In fact, opportunities are circumstances in the external environment
that allow a company to take advantage of organizational strengths, overcome company
weaknesses or prevent environmental threats. so the company needs to use the opportunities of its
external environment to improve its performance and compete its competitors (Ommani , 2011).
Example for opportunities, Apple company has very loyal customer base to its products which will
be leading to more sales and increase the company revenue (Apple Co., 2018).
2.4 Threats
The threat is an external analysis that shows risks and dangers that can face an entity or persons.
The threat in the company is an obstacle that makes impossible for the company to success and
causes unrecoverable damages. Threats are the circumstances that show up as a result of the
changes in the external environment that would limit the company from maintaining its presence
or lose its superiority in competition, and that is not preferable for the company (Ülgen and Mirze,
2010). All external environmental elements that can prevent the company from its effectiveness
and efficiency are considered threats. This system will encourage company managements to be
cautious of and act more strategically on the developments in and outside their environments.
(GÜREL, 2017). Example of threats on Apple Co. the biggest threats for Apple is its competitors.
Samsung Co. is one of Apple competitors which also provide same tech to market with high quality
and low price (Samsung Co., 2018).
7. 7
3.0 SWOT analysis for H&M
3.1 Strengths for H&M
A diverse global presence: H&M is a worldwide brand that spread in around the world and has a
strong presence. It is operated in more than 70 countries around the world over 6 continents. Lately,
in 2017 H&M has grown in potential markets such as Africa and Asia. Strong attendance of H&M
in the worldwide will reduce the business risk and will increase the company sales. In 2017, H&M
has joined new market a located in Iceland, Colombia, Georgia, Kazakhstan, and Vietnam, as well
as the company, has also established new online markets in 2017 in Macao, Hong Kong, Turkey,
Singapore, Taiwan, and Malaysia (H&M, 2017).
Creating a sustainable environment: H&M Group is one of the biggest users of organic cotton,
recycled polyester, and leucyl. Our global clothing group participates to increased recycling and
decreased environmental impact. Efficient use of water, chemicals, and energy are important to
customers. H&M policies are to reduce greenhouse gas emissions from our operations as they
grow up - mainly through the transition to renewable energy. In 2016 the group has reuse and
recycling. 96% of the electricity. However, the company would like to receive 100% of future
renewable energy. these actions will help the company to build a good reputation for the customers.
Moreover, it also shows the ability of the company to continue in the market as most of the market
requirement is to use renewable resources in the business operation.
Another strength is celebrity endorsement. H&M has been using the celebrity to represent their
products to the public in the advertisings or in the annual events of the company. According to
(Mccall, 2014), H&M has attended Lady Gaga's concert to play and entertain at their grand release.
Lana Del Ray and David Beckham some of the celebrities that the company have used them in
their advertisings, with their fashion style, they draw the celebrities’ interest as well as the general
public (Alexander, 2016).
H & M is a very strong brand, and the public can easily identify and recognized with what is part
of the H & M brand. H&M has built a strong and good image of its brand since the company was
started in 1968 until now. H&M is trying to satisfy its customers to create a good reputation by
providing wide product ring. H&M has six popular brands on the UK street, including H & M,
8. 8
Cheap Monday, Monki & Other Stories, H & M Home, COS, and Weekday. Moreover, the
company has diverse kinds of products that offered to the market such as clothing, cosmetics,
footwear and accessories for a different type of customers. And also the Group has different items
like blankets, set of vases and pots as well as candles and Holders of candles.
3.2 Weakness for H&M
Unethical History. H&M has involved in many unethical issues that have an effect on the company
reputation. according to (Melik, 2010), H&M has involved in child labor and labor exploitation in
Bangladesh, Cambodia, and Uzbekistan where children were working up to 14 hours a day in a
factory with low income to supply H&M. in January 2018 and other unethical issues has been
taking against H&M when the can the company has involve in in racist issue. the company had
used a young black child on their advertisement of a new product wearing a green hoodie with the
phrase “Coolest monkey in the jungle” that caused controversy among the customer, with many
people proclaiming their outrage for what they see as racist advertising. according to (BBC, 2018),
H&M group has disclosed that their aim was clearly not to cause offense; it just obviously didn’t
enter their minds to think seriously about their black customers. however, H&M have apologized
for their mistake.
Relying on third-party suppliers: H&M relations exceedingly on external suppliers of its goods.
H&M manufactures its products through 800 independent suppliers and therefore has less power
over production. Over-reliance on other related parties, sellers can affect the obligations of the
company's requests, and any bad experience facing the customer might harm the brand image. For
example what happened in one of the H&M suppliers factory when the workers had destroyed the
factory seeking for better condition and benefits (Guardian , 2017). This case will bring a bad
reputation to H&M even though they are not the owner of the factory but they are considered
involved in this issue (Grainger, 2018).
9. 9
3.3 Opportunities for H&M
Emerging Markets Expansion: Emerging markets in the world have huge potential for garment
manufacturing. In the first six months of 2017, H&M was able to come halfway to Zara within
seven years after joining the Indian market, having become profitable after only six months of
working there (Malviya, 2017). This shows that global brand acceptance is high, and H&M should
try to expand into new markets and new locations. Therefore, the company needs to discover those
emerging markets in Africa and Asia to take advantage of the new demand generated. These
expansion plans could help the Group to improve its baseline as well as the top line.
Sustainability in the market: H&M has kept their position in the market for so long since it has
been established in 1986. H&M has consistently advanced the ranking of the most sustainable
companies in the world over the past seven years. In light of the new corporate strategy, it has the
opportunity to be at the forefront of this list, above prestigious brands such as Tesla, Patagonia,
and Unilever (Pergrankvist, 2017). sustainability is very important for the company as it shows
that H&M has the ability to reduce its risk hence the investors will invest as they are satisfied with
a lower risk premium.
Online expansion. H&M also exists in e-commerce in different markets. H&M still have the
chance to expand the e-commerce platform also to work in a big market. E-commerce can be the
future of the garment industry and H&M needs to take advantage of the platform for its potential.
The company has performed very well in the countries that had impalement the online market
(H&M , 2018). According to H&M Group (2018), H&M has 47 online market and in 2019 it will
open two new online market in Mexico and Egypt. This expansion will help the Group to improve
their performance and be able to compete in the market.
10. 10
3.4 Threats for H&M
One of the biggest threats facing H&M is their competition. The H&M group are targeting the
stylish young professionals or teenagers who are fashionable. presently, there many other brands
who are targeting the same customer of H&M with more reasonable price and high quality. their
main competitors are Zara, Forever21, and Gap. for example, Gap is operating in more than 90
countries while H&M is only available in 70 countries (Gap Inc., 2018) This can be considered a
major threat, but there is a possibility for H&M to grow and catch with GAP.
E-Commerce allows new entrants: E-commerce became more important for most of the trades
companies as they will be able to reduce the cost of marketing such as advertising and also will
help to reach big target of customer (Cao, 2018). However, e-commerce can pose a threat to well-
known brands such as H & M, since e-commerce allows new brands to be on the market on the
same platform as famous brands, and so newcomers may affect trademark business such as H&M.
Rising labor costs in developed countries: Affordability is one of the main strength of H&M.
However, these can be affect by the change of the cost production like increasing in labor cost.
Such increased costs affect profitability for the company. The H&M’s suppliers are located in
Bangladesh, India, Vietnam, Cambodia, Kenya, and china..etc. as they have low labor cost. For
example many Chinese manufacturing firms has turning to Bangladesh to make clothes as the
salary of the workers has increased steadily over the last few year (Anbarasan, 2012)
As a global company, H&M is increasingly exposed to currency effects and export and import
policies of the countries. As what happened in 2015 H&M had faced a huge fall in quarterly
earnings because of the strength of the dollar and lower the prices (Vandevelde, 2016). another
evidence for the last seen in 2018 when the trade war starts between the USA and other countries
China and Europe. according to (BBC, 2018), many multinational companies has been affected by
the increase of the tariffs that made by USA government for all the imports products that is coming
from China, Europe, Canada and other country. H&M is multinational company which its product
will be also subject to tax when it is export to USA.