The International Expansion of a Multinational Company ---A Case Study of H&M
Authors: Jun Li Maja Frydrychowska
Abstract
Date: Level: Authors: June 19, 2008 Master Thesis in International Business and Entrepreneurship, 15 credits Jun Li (1981-11-01), China jli07001@student.mdh.se Maja Frydrychowska (1974-05-29), Poland mfa07001@student.mdh.se Title: The International Expansion of a Multinational Company---A Case Study of H&M Leif Linnskog How did H&M go international and what factors did influence its expansion? The aim of this thesis is to describe the internationalization of H&M and to explain such way of expansion using different theories and theoretical concepts. In our thesis, we mainly used the qualitative method for our case study of H&M. Meanwhile, for the data collection, the documentary approach was applied. As a retailer, H&M does not follow the standard pattern of establishment chain presented in the Uppsala model. Its establishment chain is composed of three stages: franchising, wholly owned sales subsidiaries and production offices. The company has developed strong macro-position within the clothes industry network and strong bonds with its external suppliers. The expansion decisions of H&M have been influenced by the factors included in the psychic distance concept.
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Keywords: H&M, internationalization, retailing, establishment chain, network, psychic distance
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Acknowledgement
We are here very thankful to our thesis supervisor Assistant Professor Leif Linnskog, the coordinator of our program International Business and Entrepreneurship. During the whole process of our thesis writing, he has provided us with many precious suggestions. With them, we know better what a master thesis should be. Thus, we have to say
References: 46 Oviatt, B.M., and McDougall, P.P, 2005 47 Verbeke, A., Yuan, W., 2007, “Entrepreneurship in multinational enterprises: a penrosian perspective”, Management International Review, Vol