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 which this
Premium Strategic management
H&M Hennes & Mauritz AB SWOT Strength 1. They have 3‚132 stores in more than 54 markets worldwide 2. High market share (The world’s No. 2 fashion retailer) 3. Strong brand name 4. One of the world’s largest fashion retailers 5. H&M employs around 116‚000 employees in over 54 different countries worldwide. The average number of employees in the Group‚ converted into full-time positions‚ was 81‚ 099 (72‚276)‚ of which 6‚868 (6‚220) are employed in Sweden. 6. Experienced fashion design team ( H & M
Premium Marketing Monopoly Currency
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
Premium Marketing
Products range they deal in H&M brand deals in: • Assecories • Suitning for women& men • High volume fashion basics for men&women • Swimwear • Nightwear • Underwear • Ladies Footwear • Cosmetics • Childrenwear • Children apparel 2. Identify Customers (Consumers) H&M brand’s customers are: • Men • Women • Teenagers • Children 3. Identify Means of Competition (Why will consumer buy the products??) H&M retail stores have products that are High Fashionable & Quality at low prices. H&M has advanced technology
Premium Retailing Marketing Product
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.
Premium Depreciation
Three main strategic goals for H&M for the next five years would be linked with profitability‚ competition and technological leadership. H&M has reported a rise in sales and profits and sales for the three months to 31st of August. Net profit for the third quarter of 2009 rose 4.1% to 3.46bn Swedish crowns from 3.33bn crowns last year. Sales‚ excluding sales tax‚ increased by 13% to 23.6bn crowns. So first LTO is to maintain financial stability H&M has achieved. H&M plans to increase sales revenues
Premium Marketing Profit Costs
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
Premium Reliability Vermiform appendix Human physical appearance
1. About H&M (1) H&M history -H & M Hennes & Mauritz AB comprises five different independent brands – H&M‚ COS‚ Monki‚ Weekday and Cheap Monday. The H&M Group has a total of approximately 2‚700 stores all over the world. -From a single womenswear store in 1947 to a global company offering fashion for the whole family and their home‚ under the brand names of H&M‚ COS‚ Monki‚ Weekday‚ Cheap Monday and H&M Home. -2012 H&M plans to open in Bulgaria‚ Latvia‚ Malaysia‚ and Mexico and via franchise
Premium Clothing Fashion Customer
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
Premium Sustainability
is the son of Erling Persson who founded the Swedish fashion company Hennes & Mauritz (H&M). Persson was born the same year‚ 1947‚ as H&M. His father‚ Erling‚ was the son of a butcher in Västerås‚ an hour or so outside of Stockholm. Stefan Persson chairs the hugely successful clothing retailer Hennes & Mauritz AB‚ a company founded by his father in Sweden in 1947. Known informally as "H&M‚" the international chain of nearly 900 stores has mastered the art of delivering cheap but
Premium Sweden Corporate governance Board of directors