H&M Analysis Essay

1206 Words Mar 12th, 2011 5 Pages
Introduction
In this report, an inside look will be taken on Hennes & Mauritz 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 sells own-brand cosmetics, accessories and footwear * H&M doesn't own any factories, but instead buys its goods from around 700 independent suppliers, primarily in
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So, the currency risks exist.
2. Economic slowdown
The slowdown of economic may lead to the decline of non-durable goods. People may use less money on clothing than before.

References http://en.wikipedia.org/wiki/PESTEL http://en.wikipedia.org/wiki/Porter_five_forces_analysis http://en.wikipedia.org/wiki/SWOT_analysis Appendix
Sustainable Improvements
Consideration for people and the environment is key in every aspect of our business. - All our supplies are obliged to follow H&M’s Code of Conduct- based in ILO Conventions and the UN Convention on the Rights of the Child. - H&M supports All for Children, a project in cooperation with UNICEF that aims to improve the situation of children cotton producing areas in India. - Clean water is a priority and therefore H&M has signed the CEO Water Mandate. - We aim to reduce carbon dioxide emissions by 5 percent per year in the three years to 2012 relative to sales. - We are using – and continuously trying out- new sustainable materials. The Garden Collection, a spring 2010 collection made entirely of environmentally accepted materials, offer garments and accessories with floral patterns and a modern look. - H&M’s Organic Cotton range increased. Our aim is to step up the use of organic cotton by at least 50 percent per year from 2008 until 2013 based on the previous year’s target. So far we have exceeded the target, using 3,000 tons in

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