Threshold capabilities are those needed for an organization to meet the nessecary requirement to compete in a given market and achieve the parity with competitors in that market.
a) Threshold resources
Persson family holds 2206 stores in 43 countries and 94000 employees worldwide. To stay in first the place in apparel industry, H&M need to have marketing campaigns with high profile celebrities and also high qualities employees and designer. In there supply chain, buyer and production offices are closely intergrated throughout the value chain with distribution centres, warehouse and the store around the world. Beside that, logistic which support the swift and efficient flow of goods depend on effective information sharing and the latest IT systems that are continously being developed.
b) Threshold competencies
In 2010, H&M steped up investments in order to strengthen the brand future and secure future expansion. Beside that, H&M emphasised the long-term view “Have great respect for the economy climate, have long term perspective and make sure that alway give best combination of fashion and quality for money in every market”. In store operation and management, the company always …show more content…
These are dependent on the organization having distinctive and unique capabilities that are of value to customer and which competitor find it difficult to imitate.
1. Distinctive resources
The company owned by Persson family. In 2009, Karl-johan Peerson took over as CEO, H&M had become the global leader in the fast fashion segments. Moreover, strong brand name is associated with the value and stylish collection help H&M well-knowed by customer. H&M also have a unique design team with 200 in-house designer and 100 pattern maker. For business management, 50 production offices are in direct contact with suppliers and report back to central procurement in Stockholm.
2. Distinctive