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Najah Ronya Imad
212125025
Strategic Management - MMM365 T2 2014
H&M Individual Case Analysis
Word count: 2393
Q1. What do you think is the most critical strategic issue confronting H&M? Explain your answer by drawing on relevant topics in Strategic Management
The most critical strategic issue that H&M needs to confront is the declining market position in relation to the rapid expansion of Zara and other fashion retailers.
Hennes and Maurtiz, or also known for short as H&M, is a big billion dollar Swedish fashion company which engages in designing and retailing fashion products from cosmetics, footwear and accessories for men, women and children. Operating all over the globe, throughout 43 countries with 2206 stores, there are various strategic issues which H&M need to address to keep the company moving forward and increase the market.
H&M has a large international incumbents including Zara being its most significant competitor. Zara has not been around for nearly as long as H&M and it is already being considered a ‘serious challenge’ which makes H&M questions the sustainability of the formula at hand.
Using strategic management topics we can further discuss this issue. To begin the PESTEL Framework can be used in relation to strategic management and H&M.
By using PESTEL we can categories environmental factors into specific key types, which are political, economic, social, technological, ecological and legal. These will help us to explain that environmental factors do not just revolve around economic forces but other forces which have been mentioned and all are interactive with one another.
Politics are forces both throughout the globe and in specific groups within areas which influence certain behaviour and reactions. These influences can come from various political movements and concerned media. For example H&M in the past opened up a store in Israel’s Jerusalem’s Malha Shopping Mall which is built in a
212125025
Strategic Management - MMM365 T2 2014
H&M Individual Case Analysis
Word count: 2393
Q1. What do you think is the most critical strategic issue confronting H&M? Explain your answer by drawing on relevant topics in Strategic Management
The most critical strategic issue that H&M needs to confront is the declining market position in relation to the rapid expansion of Zara and other fashion retailers.
Hennes and Maurtiz, or also known for short as H&M, is a big billion dollar Swedish fashion company which engages in designing and retailing fashion products from cosmetics, footwear and accessories for men, women and children. Operating all over the globe, throughout 43 countries with 2206 stores, there are various strategic issues which H&M need to address to keep the company moving forward and increase the market.
H&M has a large international incumbents including Zara being its most significant competitor. Zara has not been around for nearly as long as H&M and it is already being considered a ‘serious challenge’ which makes H&M questions the sustainability of the formula at hand.
Using strategic management topics we can further discuss this issue. To begin the PESTEL Framework can be used in relation to strategic management and H&M.
By using PESTEL we can categories environmental factors into specific key types, which are political, economic, social, technological, ecological and legal. These will help us to explain that environmental factors do not just revolve around economic forces but other forces which have been mentioned and all are interactive with one another.
Politics are forces both throughout the globe and in specific groups within areas which influence certain behaviour and reactions. These influences can come from various political movements and concerned media. For example H&M in the past opened up a store in Israel’s Jerusalem’s Malha Shopping Mall which is built in a