This website uses cookies to ensure you have the best experience. Learn more

Market Analysis H&M

2088 words - 9 pages

MG 2033: Quality Control

Assignment 1 : H&M

Group 20: Dominik Flum Thies Fingerhut

Introduction Hennes & Mauritz (H&M) is a 100 billion SEK company. It´s engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden. Approximately 87,000 people on a full-time basis are employed at H&M. Strategy According Michael E. Porter (1996), the strategy of a company, per definition is selecting the set of activities in which ...view middle of the document...

Besides the environmental aspect of sustainability there is a social issue. H&M’s social objectives are closely related to the Code of Conduct. This policy has been developed by H&M in order to maintain control among its many suppliers. All suppliers have to agree on the Code of Conduct, before becoming a supplier for H&M. As a consequence, one of H&M’s social objectives is to have full compliance with the Code of Conduct. Probably the key aspect of H&M´s strategy is the price. In the consumer's perception, H&M has been associated with affordable fashion. So this shapes the image of H&M. “To increase the number of stores by 10 – 15 percent per year” (H&M 2011a). Today H&M has around 2,500 stores and a presence on four continents. According to Karl-Johan Persson, CEO of H&M, the objective is to expand by 10–15 percent new stores per year. In 2011 H&M opened 266 stores. China, the US, the UK and Germany were the largest expansion markets. There were also store openings in five new countries: Romania, Croatia, Singapore, Morocco and Jordan. In 2012 H&M wants around 275 new stores. These facts show another part of H&M´s strategy: Global expansion. “Our global growth strategy is for each individual store to strengthen the H&M brand

while also contributing to increased sales and profitability,” says Head of Expansion Stefan Larsson. Due to continuous expansion it´s possible to search for promising markets, cost-efficient production and reduction of lead times. (e-Business Watch) The ruse at this, is to treat the entire world as one market. The plans and operations are same in all countries. Even H&M does not favor a specific country from any of its market areas, it implements its strategy similarly in all of them. (Czinkota et al. 1999, 473.) With the fast expansion all over the world, H&M is gradually becoming stronger and have a firm position in this industry. (H&M 2010b.) Other aspects of global expansion are the online and catalogue sales. In 2011, H&M has launched the new H&M online shop in the USA, the world’s largest retail market. Therefore it´s possible, that people can buy the products of H&M just by clicking the mouse. Reasons for success As stated by Porter (p. 61-78, 1996), “Trade-offs are essential to strategy. They create the need for choice and purposefully limit what a company offers.”According to this “Tactical choices” are the company’s individual definition of which activities should be executed and which not. The company uses various tactical choices to finally fulfill their main strategy. The strategy of H&M is both lower costs and differentiation: The main goal of H&M is to reduce cost in every step of the business in order to offer to the customers the best prices. Their management system is based on “continuous flow” principles that are performed by the supply chain management department. Because of that they are able to order each item at the right time for stores in order to have it just in time. In order to have a...

Other Papers Like Market Analysis H&M

Carlsberg In Emerging Markets Essay

763 words - 4 pages (2000) Homburg, C.; Krohmer, H. (2009) Marketingmanagement. Strategie – Instrumente - Umsetzung – Unternehmensführung; 3. Auflage; Wiesbaden (2009) Jansson, H. (2008) International Business Strategy in Emerging Country Markets; The Institutional Nework Approach; 1.Auflage; Massachussets (2008) Jizhong, W.; Lishuai, Y. (2007) Organization Analysis of Chinese Bier Industry; HLJ Foreign Economic Relation & Trade No. 151; p

International Finance Essay

1289 words - 6 pages security market line has historically been flatter than the capital asset pricing model (CAPM) would predict. Reference: Adair, T. A. (2006) Corporate finance demystified. London: McGraw-Hill. Benninga, S. (2011) Principles of finance with Excel. New York: Oxford University Press. Bierman, H. (2007) The capital budgeting decision: economic analysis of investment projects. New York: Routledge. Fama, E., F., French, K., R., (2004). The


1198 words - 5 pages they operating or capital leases and are they being shown in the books. Since Zara relies on expensive areas to act as marketing for them, this increases costs especially when buying property. With no marketing or customers this is not a good determination of how the new market will actually pan out. Manufacturing Inditex has a low Dupont and Asset turnover ratio compared to GAP and H&M. (See attached exhibits) This shows that Inditex has more

People Ahead

2503 words - 11 pages enough that, after the plan has been implemented, two independent observers can tell whether or not the objective has been met. c. Situation Analysis: Second step on the Marketing Plan; uses SWOT analysis that assesses both the internal environment with regards to it Strengths and Weakness and the external environment in terms of Opportunities and threats. d. Marketing Strategy: A firm’s target market, marketing mix, and method of


1197 words - 5 pages International Marketing 14th Edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham The Scope and Challenge of International Marketing Chapter 1 McGraw-Hill/Irwin International Marketing 14/e Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. What Should You Learn? • The changing face of U.S. business • The scope of the international marketing task • The importance of the self-reference


1569 words - 7 pages proponents and Their addresses b. Form of Business organizations and Why c. Objectives 4. Short Range E. Long Range F. Capitalization G. Total project cost H. Detailed organization cost I. Detailed working Capital J. Sources of financing K. Gantt chart of Activities CHAPTER II. MARKETING ASPECT A. Demand Analysis 1. Who are your


1022 words - 5 pages and lower performance (Chen, L. and Lee, H. L. 2012; Wang, X. and Disney, S. M. 2016). In this regard, many research has been achieved to investigate the bullwhip effects from the perspective of supply chain and operation research. In construction industry, Taylor, J. and Bjornsson, H. (1999) firstly studied demand distortion of construction material and discovered that cumulative orders from contractors amplified along the upstream to the

Dancing With Demons: Pathogenic Problem Solving

2187 words - 9 pages system model: Its provenance, development, methodology and pathology”. In R. Espejo & R. Harnden, (Eds.). The Viable Systems Model: Interpretations and applications of Stafford Beer’s VSM. Chichester, England: John Wiley and Sons. Berger, P. L., & Luckman, T. (1966). The Social Construction of Reality. Garden City, NJ: Doubleday and Co. Bookchin, M. (1982). The Ecology of Freedom. Palo Alto, CA: Cheshire Books. Brun, H. (1971

Uk Online Travel Agencies

3814 words - 16 pages Appendix G 15 Appendix H 15 Appendix I 16 References 17 Introduction This report aims to analyse the online travel agency industry in the United Kingdom (UK). It does so using a variety of techniques: 1. Offering a global view of the industry across four chosen countries – China, India, United States and the UK 2. PESTEL analysis – a summary is included in this executive summary, with the full analysis as an appendix at the back. 3

Nestle Analysis In Us Market

3509 words - 15 pages ------------------------------------------------- Student Registration Number: | 120212798 | | | Word Count: | 2442 | Table of Content Introduction………………………………………………………………………...1 Discussion Business environment PEST………………………………………………………………………………...1-2 Competitor analysis……………………………………………………………………2 Consumer analysis…………………………………………………………………..2-3 Market mix Product…………………………………………………………………………...….3-4 Price

Advertisement And Its Influence

1096 words - 5 pages swallow different brew. Wall Street Journal, B5. GOLAN, A. K., LARRY D; PERLOFF, JEFFREY M 2000. Estimating Coke's and Pepsi's price and advertising strategies. Journal of Business & Economic Statistics. LIU, H. 2008. Analysis on the efficiency of a competitive market [Online]. Hunan University. POWERS, N. J. 1989. A Study of Demand Response to Grocery Advertising of Fresh California--Arizona Navel Oranges. Agribusiness (1986-1998).

Related Essays

Howssdat Essay

495 words - 2 pages Statement B. Modern Portfolio Management Concepts C. Behavioral Finance D. Management of Individual/Family Investor Portfolios E. Management of Institutional Investor Portfolios F. Investment Manager Selection G. Economic Analysis and Setting Capital Market Expectations H. Tax Efficiency Strategies I. Asset Allocation J. Portfolio Construction and Revision K. Risk Management L. Execution of Portfolio Decisions (Trading) M. Performance Evaluation N. Presentation of Performance Results

Decision Analysis

1316 words - 6 pages Prof. John Wetherell Decision Analysis July 2016 Prof. John Wetherell Decision Analysis July 2016 DA Case Study 4 Chosen market to expand into: Computer Tablets Companies chosen and their current share in the market (2015): Samsung 13.7% Huawei 3.4% Sony < 3% In the growing world of technology, tablets are one of the most common devices being used nowadays, it’s difficult for companies to expand into new markets because of

Presentation Marks And Spencer Essay

1428 words - 6 pages About the company M&S is one of the leading retailers in the UK, tracing its history back to 1884 when Michael Marks opened a stall in Leeds market. Thomas Spencer joined him in 1894 and both created Marks and Spencer. M&S has 703 stores in the UK with over 76,000 employees and over 360 wholly-owned, partly-owned, or franchised stores in 42 territories around the globe, which accounts for 10% of the Groups revenue. M&S sells high

Business Essay

693 words - 3 pages Task 1 – Business Purpose and Operations My first business I am looking at is H&M. H&M are a fashion retail brand well known for having stores in 9 counties and having over 3200 stores in total. Their target market is teenagers and young adults but they do have stores called ‘H&M Kids’ which will appeal to that target market. H&M are in the tertiary sector as they selling fashion and accessories. This means they are providing a service. They