ANSOFF MATRIX To analyse the marketing strategies of H&M we are using the Ansoff Matrix. It is a tool that helps businesses decides their product and market growth strategy (Jobber and Fahy‚ 2003). Ansoff matrix consists of product development (Selling new products to existing customers)‚ market penetration (Selling more of the same to the same types of people)‚ market development (Selling the existing products to new types of consumer) and diversification (Selling new products to new consumer)
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on its understanding of customer‚ a company develops its marketing mix. Marketing creation of customer interest and retention of customers if this can be done at a profit. H&M spends a hefty 4 percent of revenue on marketing as valuable investment. At current sale level‚ the chain is the largest apparel retailer in Europe. H&M is not just a store chain; it is a money-making machine. The marketing orientation vs production orientation Marketing orientation companies focus on customer needs like
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Mauritz (H&M) is a fast-fashion global leader in the fashion industry. Hence‚ to have a holistic sustainable development point of view‚ we will examine and address the Marco-environment by looking at PESTEL analysis framework. The competitive forces within the fashion industry will also be revealed throughout the Porter Five Forces Model. PESTEL ANALYSIS Case Evidence Positive (Opportunities) Neutral Negative (Threats) POLITICAL factors: Critical observation faced from the public on H&M’s overseas
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Conduct a value chain analysis to assess H&M’s capabilities and derive its core competencies. (35%) Question 3. Based on these competencies identify the generic competitive strategy which H&M is pursuing. (10%) Question 4. It is suggested in the case study that the fashion industry is full of companies that have confidently expanded into international markets but later have been forced to retreat. Analyze the international strategy choice being pursued by H&M and assess the extent to
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H&M is one of the largest fashion companies in the world that designs and sells men’s‚ women’s‚ and children’s clothing‚ as well as homeware and accessories. It began as a Swedish women’s wear store in 1947 and has evolved into five brands‚ encompassing about 2‚800 stores in 48 countries on four continents‚ and employing over 94‚000 people worldwide1. H&M strives to produce increasingly sustainable fashion while making it accessible and affordable to individuals all around the globe by pursuing
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H&M In Australia Analysis Report Course Leader: Cai Huan BU1401- Business Environment Class: IB 3 Date: 14th June 2013 Group members: Joe Johnny Jacky Jesse Scott Executive summary This report main analysis feasibility of H&M enter Australia. The first section review the H&M company and products by their design style. The second section review
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effective production of the service(Stokes&Lomax‚ 2008). The process in H&M is from trend predetermination to selling in stores. In brief‚ designers carry out their work based on the forecasted data. Secondary‚ suppliers manufacture the clothes. Finally‚ the clothes could be sent to stores all around the world and customers buy the products. This process could be compleated within 20 days at the soonest. But the leadtime of H&M is usually 21 days. The information of selling of all stores will be gathered
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Political factor will influence the H&M and the fast fashion industry ‚ for example ‚ the export regulation and also the political stability of the regions that the company operates in. H&M is a Swedish company so the company will comply with the Swedish legislations and in other countries of the subsidiaries company the laws ‚ regulatory bodies and politics are subject to the countries itself. Due to its global position ‚ minimal political risk is exposed to the company but it doesn’t affect much
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Problem 4: H&M and Burberry’s non-current assets Question 1 (a) Ratio of land‚ buildings and equipment to sales H&M: (420+222+7134) / 78346 = 9.9% Burberry: (58.2+99.2) / 995.4 = 15.8% (b) Ratio of depreciation to sales H&M: (14+1750) / 78346 = 2.25% Burberry: (1.9+27)/ 995.4 = 2.9% The above ratios can be used to measure the efficiency of a firm’s investment policy. Burberry has a higher land‚ buildings and equipment to sales ratio as well as a higher depreciation to sales ratio.
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Tangibles (Physical appearance) At the first glance‚ H&M has a simple and clear design. (Appendix A) In the shop‚ different products are classified into different categories and there are clear directional signs which are easy for customers to find out what they need. (Appendix B) Also‚ the price tags are explicit and detailed for customers to understand. (Appendix C) Besides‚ the fitting rooms are located next to the cashiers which bring convenience to customers allowing them to pay right away
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