H&M Report

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Table of contents

1. Introduction

2. Macro environmental analysis

(PESTLE- political, economic, social, technology, legal, ecological)

3. Customer analysis

4. Market description

5. SWOT analysis

(Strengths, weaknesses, opportunity, threats)

6. Conclusion and Recommendations

7. References

P.1 D002 T2242531

Introduction

H&M (Hennes & Mauritz) is a global fashion brand and retail clothing company founded in Sweden, 1947 by Erling Persson. H & M founder Erling Persson because of a U.S. tour, inspired him to open a low price, high-class women's fashion clothing store ideas. (“H&M offers fashion and quality at the best price”, 2011) The first Hennes opened in Vasteras, which is the predecessor of H&M. In 60s, he expanded Hennes in most parts of Sweden, developed new markets in neighboring Norway and Denmark in 1964 and 1967. In order to expand the market share and product lines in Stockholm, Persson acquired a company called Mauritz Widforss, firearms and hunting supply stores to get the men`s clothing business for Hennes. After that, Persson renamed as Hennes & Mauritz and still in use. Until the 21st century, H&M began to expand business in Asia. It has over 2,300 stores in 41 countries and as of 2011 employed around 87,000 people for now. H&M designer collaborations with plenty of famous designers and celebrities, such as Karl Lagerfeld, Roberto Cavalli, Stella McCartney, Comme des Garcons, Viktor & Rolf, Madonna, Lanvin and Sonia Rykiel. (“H&M-Wikipedia”, 2011) The report is to analyze about the H&M Company (Hennes& Mauritz). This includes the Marco environmental analysis (PESTLE- political, economic, social, technology, legal, ecological), customer analysis, market description, SWOT analysis (Strengths, weaknesses, opportunity, threats), after that, the conclusion, recommendations and references will be provided.

P.2 D002 T2242531

Environmental Analysis (PESTLE)

PESTLE means political, economic, social, technological, legal and environmental. Political: EU and national laws; codes and practice (David Jobber, 2007, p.43)

H&M Company is following the enactment of Swedish and the actions of Swedish companies, as H&M is a Swedish brand and company. Nevertheless, if there is an H&M store located in Cambodia therefore that H&M store has to follow the Cambodia government legislation. (“Worldnews.com”. 2011) For instance, there has an article posted on hm.com about Royal Government of Cambodia is considering amendment to article 67 and 73 of Cambodia enactment. This affects H&M as it injures their short-term contracts. If there are changes in laws, H&M has to change the purposes or operations to fit the requirements.

Economic: economic growth; unemployment; interest and exchange rate; global economic trends (David Jobber, 2007, p.43)

H&M Company has over 87,000 employees in about 41 countries for now, they target growth around 10-15 percent new stores per year. (“H&M offers fashion and quality at the best price”, 2011) It shows H&M create a large number of Employment opportunities for the sociaty, conducive to economic growth.

Social: changes in world population, age distribution and household structure; attitude and lifestyle changes; subcultures within and across national boundaries; consumerism (David Jobber, 2007, p.43)

H&M makes sure all products can meet customer`s anticipation. All products have to go through over 100...
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