Hnm Case Study

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H&M CASE STUDY
LECTURER: JOSE SCHEUER
PREPARED BY: ZUBAIR FARHAT

Q1. To what extent is H&M marketing orientated? What evidence is there in the case to support your view? Market orientation is when a company organizes its activities, products and services around the wants and needs of its customers. In the case of H&M it can be seen that the organization follows the market orientation philosophy as it focuses on the needs and wants of the customers before making its products. The company recognizes the ongoing slump in the world economy and sees the fact that it is hard for consumers to buy expensive fashion clothing so it comes up with the idea of trendy and fashionable clothes but within the reach of the common man. From the case study there is evidence of the company following and believing in market orientation school of thought. For example, H&M has its strong footholds in both Europe and the US but the way they market and sell their products in these two regions is very different. In Europe H&M is seen as more of a department store however in the US the company targets the young and more fashion conscious females. In other case H&M keeps the customers and there wants in mind when designing or launching a new product line, as seen from the case study, Ann-Sofie Johansson a designer for H&M admits that finding the needs of the customers is very important, she says and admits that she used to follow people off the subway and questioned them about their fashion needs.

Q2. Into which cell of the efficiency-effectiveness matrix does H&M fall? Justify your answer. Efficiency means doing the thing right and Effectiveness means doing the right thing. In regards to the matrix H&M is both efficient and effective. Efficiency is achieved when a company produces its goods economically, by keeping overheads and costs to the minimum, H&M does the same, it outsources its...
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