8. Hennes and Mauritz AB ‘SWOT analysis
In this section, we talk about internal and external factors based on their marketing strategy that can influence H&M business. The reason why we think using this analysis is important is because it gives us a glance of the external and internal environment situation of the company thus, helps us in understanding the company under examination well.
Strengths
*Strong market segmentation(all gender, age and social class)
*Collaboration and association with famous and talented designers. Celebrity endorsements
*Supply of affordable and good quality fashion items
*Second leader in the global market and first in European market
*Fast supply of trendy clothing
*Strong presence in social media
*Smart move …show more content…
The first weakness that we have found within this organization is the lack of its own factories. As we mentioned it above, the firm works with more than 200 designers in its headquarter in Sweden and more than 700 independent suppliers across Europe and mostly in Asia. This situation have brought problems such as poor quality of products and sizing system that is not constant because they do not have control over those factories. Another problems is that the overstocking of stores makes these latter look unkempt and crowded which can give the impression of shopping in a market than a high fashion store. Overstocking brings price reduction on already low price over time because they do not sell all products and this can make the company lose money. Many people think that buying H&M products means that they are cheap. This makes some not wanting to buy in their stores because of the cheap image associated with their items. A part from cheap image, Hennes and Mauritz AB products do not offer …show more content…
At H&M, the main segment that helps the organization to gain most of its profits is women wear which results in men and children sections taking a little bit the back seats in their stores. This is why, women wear are displayed in every H&M’ s store main entrance because they focus more on this segment. While at Zara, men, women and children sections are mush more balanced because they focus on all the three channels. So , this can mean, Zara’s market segmentation is much more broader that H&M’
In this section, we talk about internal and external factors based on their marketing strategy that can influence H&M business. The reason why we think using this analysis is important is because it gives us a glance of the external and internal environment situation of the company thus, helps us in understanding the company under examination well.
Strengths
*Strong market segmentation(all gender, age and social class)
*Collaboration and association with famous and talented designers. Celebrity endorsements
*Supply of affordable and good quality fashion items
*Second leader in the global market and first in European market
*Fast supply of trendy clothing
*Strong presence in social media
*Smart move …show more content…
The first weakness that we have found within this organization is the lack of its own factories. As we mentioned it above, the firm works with more than 200 designers in its headquarter in Sweden and more than 700 independent suppliers across Europe and mostly in Asia. This situation have brought problems such as poor quality of products and sizing system that is not constant because they do not have control over those factories. Another problems is that the overstocking of stores makes these latter look unkempt and crowded which can give the impression of shopping in a market than a high fashion store. Overstocking brings price reduction on already low price over time because they do not sell all products and this can make the company lose money. Many people think that buying H&M products means that they are cheap. This makes some not wanting to buy in their stores because of the cheap image associated with their items. A part from cheap image, Hennes and Mauritz AB products do not offer …show more content…
At H&M, the main segment that helps the organization to gain most of its profits is women wear which results in men and children sections taking a little bit the back seats in their stores. This is why, women wear are displayed in every H&M’ s store main entrance because they focus more on this segment. While at Zara, men, women and children sections are mush more balanced because they focus on all the three channels. So , this can mean, Zara’s market segmentation is much more broader that H&M’