Project 1 H M Taewook Kang
H&M
Project 1
Copenhagen Business Academy
AP Degree Programme in Marketing Management 1st semester
Guidance teacher: Lorentz Jessen
The Date of Hand-in: 16th December, 2013
Names and Signatures: Taewook Kang, Inna Nielsen, Mads Zacho Krarup, Phillip Christian Schmølker Hornehøj, Azjargal Purevdavaa
Contents
1. Introduction (TK/PC) 3
2. Problem field (TK) 3
3. Problem statement (TK/MC) 3
4. Delimitation (TK/AP) 4
5. Methodology 4
5.1. Internal analysis (TK/MC) 4
5.2. Fiancial analysis(AP) 4
5.3. External analysis(TK/IN) 5
5.4. Strategy setting (PC/IN) 5
6. Conclusion(MC/AP) 6
7. Sources(TK/MC/AP/PC/IN) 6
8. References(TK/MC/AP/PC/IN) 6
1. Introduction
As an international clothing company in Sweden, H&M exerts great influence on every part of the world. With the biggest market size in the U.S., they have the most dominant market status in Denmark, its neighbouring Scandinavian country.1 With H&M’s rapidity of adjusting itself to the latest design and low price, H&M counts for market share of 10.1%, the highest, in Denmark.2 Now, there are 94 H&M stores in Denmark including 5 newly opened stores in 2012. Every year, H&M is opening from 10% to 15% more stores. Considering the growth rate, H&M is expected to take more market share in the coming years.1
2. Problem field
The financial crisis2 from 2008 to 2009 immensely influenced the Danish clothing industry. Even though there has been a tiny growth of GDP in 2010 and 2011 by 1.6% and 1.1% respectively3, the situation is too serious to be covered by these small positives. A new tax reform by the Danish government came into force to motivate employment and purchase.4 However, Danish people became more price-sensitive and they have greatly reduced the expenditure on clothing. Real per capita expenditure on clothing has dropped by
Project 1
Copenhagen Business Academy
AP Degree Programme in Marketing Management 1st semester
Guidance teacher: Lorentz Jessen
The Date of Hand-in: 16th December, 2013
Names and Signatures: Taewook Kang, Inna Nielsen, Mads Zacho Krarup, Phillip Christian Schmølker Hornehøj, Azjargal Purevdavaa
Contents
1. Introduction (TK/PC) 3
2. Problem field (TK) 3
3. Problem statement (TK/MC) 3
4. Delimitation (TK/AP) 4
5. Methodology 4
5.1. Internal analysis (TK/MC) 4
5.2. Fiancial analysis(AP) 4
5.3. External analysis(TK/IN) 5
5.4. Strategy setting (PC/IN) 5
6. Conclusion(MC/AP) 6
7. Sources(TK/MC/AP/PC/IN) 6
8. References(TK/MC/AP/PC/IN) 6
1. Introduction
As an international clothing company in Sweden, H&M exerts great influence on every part of the world. With the biggest market size in the U.S., they have the most dominant market status in Denmark, its neighbouring Scandinavian country.1 With H&M’s rapidity of adjusting itself to the latest design and low price, H&M counts for market share of 10.1%, the highest, in Denmark.2 Now, there are 94 H&M stores in Denmark including 5 newly opened stores in 2012. Every year, H&M is opening from 10% to 15% more stores. Considering the growth rate, H&M is expected to take more market share in the coming years.1
2. Problem field
The financial crisis2 from 2008 to 2009 immensely influenced the Danish clothing industry. Even though there has been a tiny growth of GDP in 2010 and 2011 by 1.6% and 1.1% respectively3, the situation is too serious to be covered by these small positives. A new tax reform by the Danish government came into force to motivate employment and purchase.4 However, Danish people became more price-sensitive and they have greatly reduced the expenditure on clothing. Real per capita expenditure on clothing has dropped by
References: [1] H&M Annual Report 2012, H&M, 2012 [2] Apparel in Denmark, Euromonitor International, April 2013