Strategic Analysis Presentation H&M
To what extent can H&M’s important resources and capabilities be sustained?
-Describe resources and capabilities. VRIO framework
The resources and capabilities of an organisation contribute to its long-term survival and potentially to competitive advantage.
Resources are the assets that organisations possess
• Physical facilities: o Production office, distribution centres, and warehouse. o H&M does not own any factories and physical store.
• Financial: o The Persson Family’s long-term commitment offers a strong financial foundation for H&M. o H&M has a positive financial condition and ratios. 3.84% revenue increase in 2014.
• Human resources: o Strong corporate culture from the leadership of the Persson …show more content…
• Intangible assets: o The brand name of H&M has a strong reputation in the market. It was ranked 21st among the top 100 most valuable global brands according to Interbrand in 2015 o H&M has an integrated IT system that is highly reliable to ensure the supply and demand, monitor customer needs and preferences based on sales patterns.
Competences
• Culture o The business strategy of H&M is to offer “cheap-and-chic” or “fashionable and elegant clothes at affordable prices”. One of the main factors to achieve the strategy is the company strong culture. It ensure all the employee around the world to understand and share the same value o The company highly encourage employee involvement and experimentation o It has an open-door policy where every individual has the right and possibility to discuss any work-related issue directly with management. o decision-making is decentralised and store managers have considerable autonomy
• Design o Design is centralised at the Stockholm headquarters that has a team of almost 200 …show more content…
o H&M has done 200 in-house collaboration with famous designers and celebrity such as Stella McCartney, Alexander Wang, Madonna, and Beyonce o H&M also perform CSR by using sustainable materials for the special collections and ensuring the working conditions of the supplier’s workers.
• Internationasation strategy o When H&M opens a new store in a country, H&M minimize the formal rules and procedure o They prefer the employee to learn by experiential learning such as training programmes and on the job training to ensure that the employees understand the company’s core values
• Store concept o H&M always open a store in a prime location of a shopping district o It constantly change the window and in store displays to attract customers. o Every two or three years a new store interior design is created
• Supply chain o Production offices, distribution centres, and warehouse work closely together to increase flexibility and allowing store to restock at the right
To what extent can H&M’s important resources and capabilities be sustained?
-Describe resources and capabilities. VRIO framework
The resources and capabilities of an organisation contribute to its long-term survival and potentially to competitive advantage.
Resources are the assets that organisations possess
• Physical facilities: o Production office, distribution centres, and warehouse. o H&M does not own any factories and physical store.
• Financial: o The Persson Family’s long-term commitment offers a strong financial foundation for H&M. o H&M has a positive financial condition and ratios. 3.84% revenue increase in 2014.
• Human resources: o Strong corporate culture from the leadership of the Persson …show more content…
• Intangible assets: o The brand name of H&M has a strong reputation in the market. It was ranked 21st among the top 100 most valuable global brands according to Interbrand in 2015 o H&M has an integrated IT system that is highly reliable to ensure the supply and demand, monitor customer needs and preferences based on sales patterns.
Competences
• Culture o The business strategy of H&M is to offer “cheap-and-chic” or “fashionable and elegant clothes at affordable prices”. One of the main factors to achieve the strategy is the company strong culture. It ensure all the employee around the world to understand and share the same value o The company highly encourage employee involvement and experimentation o It has an open-door policy where every individual has the right and possibility to discuss any work-related issue directly with management. o decision-making is decentralised and store managers have considerable autonomy
• Design o Design is centralised at the Stockholm headquarters that has a team of almost 200 …show more content…
o H&M has done 200 in-house collaboration with famous designers and celebrity such as Stella McCartney, Alexander Wang, Madonna, and Beyonce o H&M also perform CSR by using sustainable materials for the special collections and ensuring the working conditions of the supplier’s workers.
• Internationasation strategy o When H&M opens a new store in a country, H&M minimize the formal rules and procedure o They prefer the employee to learn by experiential learning such as training programmes and on the job training to ensure that the employees understand the company’s core values
• Store concept o H&M always open a store in a prime location of a shopping district o It constantly change the window and in store displays to attract customers. o Every two or three years a new store interior design is created
• Supply chain o Production offices, distribution centres, and warehouse work closely together to increase flexibility and allowing store to restock at the right