H&M vs Zara
INTRODUCTION
I. Japan PEST analysis 3 A. Political Landscape 3 B. Economic Landscape 3 C. Socio-cultural Landscape 4 D. Technological Landscape 5 II. Fashion Industry: Five Forces of Porter 6 A. Threat of new entry 6 B. Bargaining power of suppliers 8 C. Bargaining power of buyers 8 D. Threat of substitute products/services 9 E. Intensity of rivalry among competitor 10 III. Company analysis 11 A. H&M 11 1. H&M Vision, Values, Goal and Strategy 11 2. H&M’s internationalization process 11 3. H&M’s organizational structure 12 4. H&M’s Global Role 13 B. SWOT Analysis 14 1. H&M in Japan 14 2. ZARA in Japan 17 C. Value Chain Analysis 19 1. Logistics. 19 2. Operation. 20 3. Marketing & sales. 21 4. Service. 21 5. Infrastructure. 22 6. Human resource management. 23 7. Technology 24 8. Procurement. 25 IV. Strategy and environment 26 V. Recommendations 27
Introduction
H&M was established in Vasteras, Sweden in 1947. At the beginning, it was given the name Hennes (the Swedish word for “hers”) because only women’s clothes were sold there at that time. In 1968, men’s clothes began to be sold in the stores thus, the company changed its name to Hennes & Mauritz (H&M in short). In the following years, H&M kept expanding continuously in different markets. The business concept of the company is “to provide people with fashion and quality at the best price”.
The company arrived in Japan in 1998 seeking a notoriously market whose consumers have one of the strongest purchasing power worldwide to offer fashionable items at low price. This operation was considered an important step in the international expansion for the company because it represented not only an opportunity to grow in a solid economy but it also meant a huge challenge in considering the cultural and social differences.
The structure of the following research starts with
I. Japan PEST analysis 3 A. Political Landscape 3 B. Economic Landscape 3 C. Socio-cultural Landscape 4 D. Technological Landscape 5 II. Fashion Industry: Five Forces of Porter 6 A. Threat of new entry 6 B. Bargaining power of suppliers 8 C. Bargaining power of buyers 8 D. Threat of substitute products/services 9 E. Intensity of rivalry among competitor 10 III. Company analysis 11 A. H&M 11 1. H&M Vision, Values, Goal and Strategy 11 2. H&M’s internationalization process 11 3. H&M’s organizational structure 12 4. H&M’s Global Role 13 B. SWOT Analysis 14 1. H&M in Japan 14 2. ZARA in Japan 17 C. Value Chain Analysis 19 1. Logistics. 19 2. Operation. 20 3. Marketing & sales. 21 4. Service. 21 5. Infrastructure. 22 6. Human resource management. 23 7. Technology 24 8. Procurement. 25 IV. Strategy and environment 26 V. Recommendations 27
Introduction
H&M was established in Vasteras, Sweden in 1947. At the beginning, it was given the name Hennes (the Swedish word for “hers”) because only women’s clothes were sold there at that time. In 1968, men’s clothes began to be sold in the stores thus, the company changed its name to Hennes & Mauritz (H&M in short). In the following years, H&M kept expanding continuously in different markets. The business concept of the company is “to provide people with fashion and quality at the best price”.
The company arrived in Japan in 1998 seeking a notoriously market whose consumers have one of the strongest purchasing power worldwide to offer fashionable items at low price. This operation was considered an important step in the international expansion for the company because it represented not only an opportunity to grow in a solid economy but it also meant a huge challenge in considering the cultural and social differences.
The structure of the following research starts with
References: 1. Panka. Ghemawat, Jose. Luis. Nueno. “ZARA: Fast Fashion.” Harvard Business School. 9-703-497 REV: December 21, 2006. Print. 2. Andrew. Mcafee, Vincent. Dessain, Anders. Sjoman. “ZARA: IT for Fast Fashion.” Harvard Business School. 9-604-081 REV: September 6, 2007. Print. 3. Porter. Michael. E. “What is Strategy?” Harvard Business Review. Vol.74. Issue6. (1996) P61. Print. 4. Mats. Wingborg. “H&M’s Infrastructure for the auditing and improvement of working conditions in supplier factories” Clean Clothes Campaign (2006) P12. Print. 7. Vignali. Claudio. “Retail Fashion Marketing: the complete strategic guide (H&M)” Zagreb. 2006. 119-31. Print. 8. H&M official website. Facts About H&M. 2010. Wbe. December 20, 2010. 10. Geert Hofstede. “What about Japn?” 2009. Web. November 20, 2009.