There are always many ways and type of forms in order to stay competitive with the competitors in the globe. According to Harvard Professor Michael E. Porter propelled the concept of industry environment into the foreground of strategic thought and business planning (SM Text Book p.g97). The Porter Five forces will reveal the five forces that will be undergo of the shape of the competition in an industry. The H&M involvement in an industry where Porter Five forces are included in these forces to determines the success of a company in the industry. The Porter Five forces establish among the determinants of entry, rivalry, customers, suppliers and potentials entrant and the treats of the substitutions products. The highlight of the Porter Five
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Although H&M ‘s existing competitors have been aggressively expanding in the Apparel Industry, H&M have not been falling far too behind and has been staying competitive with the competitors by providing the combination of timelessness and distinctive trends. Even thought H&M doesn’t have own production factory the company have been able to stand strong to compete against competitors like Inditex (Zara) as the most significant competitor with a reliable and strong outsource independent supplier to produce the product for H&M. H&M have been able to achieve economic of scale due to the intense competitions by having 2,206 stores which included 50 franchise stores, 35 COS stores, 48 Monki stores, 18 Weekday stores and one Cheap Monday store which the product are produce by 700 independent suppliers through its 16 local production offices in Asia and Europe. The figure of 700 independent supplier that are outsources has been able to shows the strength of H&M to achieve the competitive gains without having own manufacturing productions factories like others. The fact that, H&M have been able to outsource the productions of 700 suppliers also proves the company could have comfortable to engage on low-cost production with quality which the all consumers are concerned about …show more content…
Strong completion, price transparency, and high technology innovation involvement has limit the power of suppliers as H&M could replace the supplier as the suppliers no longer dominate the Apparel Industry where other suppliers could have provide effective type of solution to H&M. As the Apparel Industry are prone and tend to switch at a fast paced will also limits the power of suppliers as there are also many suppliers that provide different types of raw material and not all suppliers will have the raw material to complete the production which H&M wish to produce. Outsource product manufacturing could be consider as an effective move for H&M as the company will not have to worry about the production line with different raw material and technologies required. Suppliers will also tend to have long term and close collaborative relationship and will be working hand in hand closely because of the vast amount of supplier in the globe and be replaceable easily. Therefore, H&M have dominance power of supplier around the globe which allows H&M to engage in low-cost productivity and fast fashion
Although H&M ‘s existing competitors have been aggressively expanding in the Apparel Industry, H&M have not been falling far too behind and has been staying competitive with the competitors by providing the combination of timelessness and distinctive trends. Even thought H&M doesn’t have own production factory the company have been able to stand strong to compete against competitors like Inditex (Zara) as the most significant competitor with a reliable and strong outsource independent supplier to produce the product for H&M. H&M have been able to achieve economic of scale due to the intense competitions by having 2,206 stores which included 50 franchise stores, 35 COS stores, 48 Monki stores, 18 Weekday stores and one Cheap Monday store which the product are produce by 700 independent suppliers through its 16 local production offices in Asia and Europe. The figure of 700 independent supplier that are outsources has been able to shows the strength of H&M to achieve the competitive gains without having own manufacturing productions factories like others. The fact that, H&M have been able to outsource the productions of 700 suppliers also proves the company could have comfortable to engage on low-cost production with quality which the all consumers are concerned about …show more content…
Strong completion, price transparency, and high technology innovation involvement has limit the power of suppliers as H&M could replace the supplier as the suppliers no longer dominate the Apparel Industry where other suppliers could have provide effective type of solution to H&M. As the Apparel Industry are prone and tend to switch at a fast paced will also limits the power of suppliers as there are also many suppliers that provide different types of raw material and not all suppliers will have the raw material to complete the production which H&M wish to produce. Outsource product manufacturing could be consider as an effective move for H&M as the company will not have to worry about the production line with different raw material and technologies required. Suppliers will also tend to have long term and close collaborative relationship and will be working hand in hand closely because of the vast amount of supplier in the globe and be replaceable easily. Therefore, H&M have dominance power of supplier around the globe which allows H&M to engage in low-cost productivity and fast fashion