H&M company analysis

Topics: Strategic management, Fashion design, Online shopping Pages: 18 (4087 words) Published: June 5, 2014
Table of Content
Executive Summary
1-2
1.0 Company Background
1.1 H&M History
1.2 Products, Strategy, Vision and Mission Statement
2-3
2.0 Strategy Planning
2.1 Establishment & Effectiveness of Vision, Mission and Goals 2.2 External Analysis
2.2.1 Opportunities
2.2.2 Threats
2.3 Internal Analysis
2.3.1 Strengths
2.3.2 Weaknesses
2.4 SWOT Analysis
2.5 Benchmarking
2.6 Hierarchy of strategy
2.7 BCG Matrix
4-9
3.0 Conclusion
3.1 Advice
3.2 Future Plan

Reference

History of H&M

H&M were established in Vasteras, Sweden in 1947 by Erling Persson. World events and trends of monumental significance have occurred, since the little Swedish ready-to-wear chain developed into a multinational concern with stores in 18 different countries. When their store opened in Stockholm's kungsgatan, there was a queue one kilometer long and the traffic police were forced to intervene. H&M stands for Hennes and Mauritz, it is a Public Limited Company, whereby all the stores are owned and solely run by H&M. Business forms such as joint ventures and franchising are therefore not possible. H&M are regarded as a high street fashion retailer, aimed at 'everybody' - and always with the best prices. They are recognised for inexpensive but trendy clothing. They currently have 901 stores located in 18 countries, employing 39,000 employees. The focus on foreign markets began with a store in Norway in 1964, and due to this inter? national status they currently occupy market share allover the world. By 1961 H&M opened a store in Norway and by 1964 in Denmark, they were quick to keep up with changing trends. In 1974 H&M was listed on the stock exchange, and they opened stores in Europe. By the 1980's H&M began focusing on internationalization with a new managing director Stefan Persson. Stores were opened in Germany and the Netherlands and the share prices rose. H&M got their first in house designers with pupils hand-picked from the fashion and tailoring colleges in Stockholm to work in Norrlandsgatan, where there was also a major drive on jewelry and accessories. In 1983, H&M offered their customers a new and convenient way of shop? ping, by selling clothes by mail order, in order to keep up with competition, which was becoming more and more intense. By the 90's H&M were greatly worried by the impact of e-commerce, more companies were starting to have web pages, and by 1995, companies began providing the service of Internet shopping. In 1992 H&M opened in Belgium, 1994 in Austria, and by 1996 in Luxembourg. A dramatic change came about for H&M in 1998 when they began selling on the Internet. It was apparent to directors, which they had to do this, as competition was becoming fierce, and profits were lowering. Today H&M has received global recognition for its designer collaborations, including Karl Lagerfeld, Stella McCartney, Viktor & Rolf, Roberto Cavalli, Rei Kawakubo of Comme des Garçons, Matthew Williamson, Jimmy Choo, Sonia Rykiel and Lanvin. Every H&M store is unique: our One New Change store is H&M’s first in the City of London and carries collections and accessories for women and men, including tailoring and suiting and a selection of swimwear.

H&M Company Profile
Production
H&M does not own any factories. Instead, clothes and other products are commissioned from around 800 independent suppliers, primarily in Asia and Europe. The H&M buying department plans the range. After that, all practical aspects are dealt with by our production offices. These production offices, where most of the employees are drawn from the local population, are in constant contact with the suppliers. The production offices are responsible for placing the order with the right supplier and for items being produced at the right price, making sure that they are of good quality and delivered at the right time. They also audit that production takes place under good working conditions. The production offices perform...
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