Strategy

12/02/2011
Strategy Analysis of H&M | Maissaa BEN TAHRA |
Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis |

Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis |

                                               

                                                                             

REPORT OF STRATEGIC ENVIRONMENT ANALYSIS

| There are many external factors affecting the fast fashion industry most importantly in H&M’s case is the transportation cost and price of oil |
External factors change in the markets of production. Raw material prices have increased; cotton prices for example almost doubled in 2010. H&M has to adapt to changing conditions but always in accordance with their business concept – to offer customers fashion and quality at the best price. | There is a mix of external shocks in the fast fashion industry:
  * Economic slowdown
  * Energy costs (oil price)
  * Employment level
  * Change in regulations
  * Logistics (i.e. shipping time)
  * Transportation cost and time (H&M owns design but do not own factories therefore it is importing most of its goods from china which results in high transportation costs)
  * Use of IT
  * Raw material price fluctuation (e.i: cotton’s price have doubled up in 2010)

There is a mix of external shocks in the fast fashion industry:
  * Economic slowdown
  * Energy costs (oil price)
  * Employment level
  * Change in regulations
  * Logistics (i.e. shipping time)
  * Transportation cost and time (H&M owns design but do not own factories therefore it is importing most of its goods from china which results in high transportation costs)
  * Use of IT
  * Raw material price fluctuation (e.i: cotton’s price have doubled up in 2010)

ˡ (2011), H&M’s environmental objectives and sustainability policy. Available from: H&M, Web site:... [continues]

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