6.0 STRATEGIC ANALYSIS & RECOMMENDATION FOR ZARA 6.1 PORTER 5 FORCES ANALYSIS 1. Barriers to entry: HIGH a. High fixed cost business requires economics of scale for sustained profitability b. High Selling & Administration Expenses which includes advertising‚ in-store promotions‚ etc.; up to 3.5% of its revenue‚ even though for Zara‚ the company is famous for spending minimum level of advertisements and commercials. However‚ recently the company announced that it invested €450 million in
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which must sign H&M’s “behavior code” for ex in 2006 implementation of an agreement with Procter and Gamble (one on its providers) stipules that H&M can control P&G activities and all its fabrication process. ing high wages. That ability of adaptation shows that H&M can diversify its production and targets specific consumers: its factories make sportswear‚ masculine and feminine clothes‚ as well as accessories or lingerie. The role of advertisement is extremely important in H&M’s strategy. The
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&mHistory of H&M H & M‚ (Hennes & Mauritz AB) is a Swedish multinational retail-clothing company‚ known for its trendy fashion clothing for men‚ women‚ teenagers and children. It started out as a single womenswear store in 1947‚ and subsequently transformed to a global company offering fashion for the whole family‚ and their home. The business concept is to give the customer unbeatable value by offering fashion and quality at the best price. H&M ensures the best price by having
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Mauritzs (H&M) sourcing and inventory direction strategies and their reliance on distribution channel partners. H&M has developed a extraordinary distribution channel dodge to compete with better entrenched retailers including Gap‚ Old Navy‚ Zara and FCUK. H&M ware Strategy Understanding H&Ms distribution strategy requires a clear intellectual of their oerlap philosophy and strategy. Like Gap and other habiliment retailers‚ H&M foodstuffs to a particular segment of the bearing consumer market. H&Ms philosophy
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AB (H&M). We will analyse on it using PESTEL‚ Porter’s Five Forces and SWOT to get a clear concept of what H&M is today and where it can go. This positioning will be helpful in strategy designing. Company activities H&M was established in Västerås‚ Sweden in 1947 by Erling Persson. We now sell clothes and cosmetics in around 2.200 stores around the world. * H&M offers fashion and quality at the best price * H&M offers fashion for women‚ men‚teenagers and children. * H&M also
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I. Market context – understanding the market environment that H&M is operating • What is the overview of the Hong Kong fashion & apparel market? ← What are the characteristics of this market? ← What are the different market segments? ← Segmentation‚ Positioning and Competitor Analyis of H&M – where do they te these impression (marketing strategy STP) ? • How do they evaluate the performance of H&M? ■ Creating a thrilling shopping experiences. Renews
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2. Zara’s product cycle was much better than its competitors. Zara was able to originate a design and have finished goods in stores in 4-5 weeks for entirely new designs. The industry model was 6 months for design and 3 months for manufacturing. Zara produces 11‚000 items a year as compared to 2‚000-4‚000 by competitors. 3. Zara’s quick product cycle created a sense of scarcity and a “buy now or miss it” mentality among customers. Zara shoppers visited the chain 17 times a year‚ compared with an
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analysis 4 PEST 4 Porter’s Five Forces 5 Competitor analysis 5 SWOT analysis 6 Conclusion 6 Literature 7 Enclosures 10 Enclosure 1 10 Introduction In 2009 H&M and Zara were accused of using child labour (www.ilo.org). Even though H&M is a huge company the scandal damaged the reputation of H&M and without the right recovering strategy the damages might have been fatal. Since the scandal H&M has worked towards a better image by implementing CSR and taking a clear
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ZARA是西班牙Inditex集团旗下的一个子公司，它既是服装品牌，也是专营ZARA品牌服装的连锁零售品牌。1975年设立于西班牙的ZARA，在世界各地56个国家内，设立超过两千多家的服装连锁店。ZARA深受全球时尚青年的喜爱，设计师品牌的优异设计，价格却更为低廉，简单来说就是让平民拥抱High Fashion。 Zara‚ a Spanish-based chain owned by Inditex‚ is a clothing retailer who has taken a new approach in the industry. Zara stores are company-owned‚ except where local legislation forbids foreigner-owned businesses. It was first open in 1975‚ originally a lingerie store‚ then the product range expanded to incorporate women’s fashion‚ menswear
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Problem 4: H&M and Burberry’s non-current assets Question 1 (a) Ratio of land‚ buildings and equipment to sales H&M: (420+222+7134) / 78346 = 9.9% Burberry: (58.2+99.2) / 995.4 = 15.8% (b) Ratio of depreciation to sales H&M: (14+1750) / 78346 = 2.25% Burberry: (1.9+27)/ 995.4 = 2.9% The above ratios can be used to measure the efficiency of a firm’s investment policy. Burberry has a higher land‚ buildings and equipment to sales ratio as well as a higher depreciation to sales ratio.
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