H And M & SWOT Analysis Of H & M

Great Essays
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’

Related Documents

  • Improved Essays

    Morrulo pharmacy is a medium sized upscale pharmacy that is opening in Grilling heights area. It is located near the suburban plaza that houses many communities. It is located near Grilling heights nursing hospital and is under partial authorization by the Grilling heights city council. This pharmacy employs around 60 staffs that include 10 senior pharmacists, 20 junior pharmacists, 10 pharmacist assistants and other staffs.…

    • 903 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Hyvee Swot Analysis

    • 1794 Words
    • 8 Pages

    History of Hyvee https://www.hy-vee.com/company/about-hy-vee/history/default.aspx and from wikipedia we will site the references https://en.wikipedia.org/wiki/Hy-Vee Early years and General Supply Company The Beaconsfield Supply Store Beginning in 1917, Vredenburg and Lewis, David Vredenburg's past organization, worked stores as a component of the General Supply Company, a RLDS Church possessed organization situated in Lamoni, Iowa. In 1921, Charles Hyde began working for the General Supply Company's store in Woodbine, Iowa, which was worked by Vredenburg and Lewis.…

    • 1794 Words
    • 8 Pages
    Great Essays
  • Great Essays

    This has resulted in a decline in costs and an increase in its market share which is 17.7 % of cheap apparel. The company has increased the type of products it offers, by bringing in complimentary products, again aimed at its target market. While its main product is still fashion, it has expanded its line to include toiletries and cosmetics along with a wider range of accessories. This has allowed the company to achieve economies of scope by the savings created in producing a greater choice of products using many of the same…

    • 1040 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    Dillard's Case Analysis

    • 1524 Words
    • 7 Pages

    Macy’s and Dillard’s are both major department stores in the United States. How these companies position themselves to customer are similar yet different. The Segmentation groups, geographical, demographical, psychographic, and behavior aspects are relevant toward the targeting and positioning made by these companies. What kind of targeting these department stores use, and the value proposition the companies have. These factors determining their positioning.…

    • 1524 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Hunks Engines Case Study

    • 551 Words
    • 3 Pages

    When Gordon McMaster CEO of Hunks Engines introduced Marty Echt the head of marketing department, it was clear that he aims to make some changes in his company. The biggest problem that the company was facing was that the marketing department wasn’t doing enough to promote the product. Due to being satisfied with the situation, the marketers were not willing to take an extra mile to improve their strategies, and the sales were declining. It was clear that the marketing of the company needed a different strategy approach for the company to compete with other leading firms. Marty Echt was not only concerned with the marketing but also the reputation and authenticity of the product.…

    • 551 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Situational Factors………………………………………………………………….... 6 5. External Factors………………………………………………………………………7 6. Consumer Decision Process…………………………………………………………..8 7. Swot Analysis…………………………………………………………………………10 8.…

    • 3675 Words
    • 15 Pages
    Superior Essays
  • Great Essays

    Abstract This case study that makes a long-term 5+ years policy and strategy recommendations to the Vera Bradley company. Vera Bradley founded in 1982 by two friends, Barbara Bradley and Patrick Miller. The company operates in the women’s luxury handbag in the accessories industry. The company is focused on women’s distinctive fashion needs. The company generates revenues in two segments, are direct and indirect.…

    • 1799 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    4.0 The organization business strategy 4.1 Business level strategy of Zara Michael Porter also formulated a theory of how company can select a business level strategy. The organization must choose between two basic ways of increasing the value of an organization’s product which is differentiating the product to add value or lowering the costs of value creation. Based on Zara’s company the business level strategy is based on focusing both and differentiation cost leadership. Most important point of this strategy is to maintain balance between low cost and differentiated products.…

    • 858 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Zara is the leading brand in the portfolio of Inditex, the Spanish fashion group founded in 1975. It accounts for almost one third of the Group stores and two thirds of revenue. By the end of 2013 Zara had 1827 stores opened globally on 88 markets and continued its online expansion by launching online sales in South Korea and Mexico making total online presence on 27 markets. The original business idea of Zara was to link customer demand to production by following the fashion trends and to link production to distribution, thus creating “fast” fashion, which is the key success factor of the company.…

    • 1319 Words
    • 6 Pages
    Great Essays
  • Great Essays

    Zara Fashion System Analysis

    • 2487 Words
    • 10 Pages

    Fast fashion system mainly contains two components that make it superior from other systems. One component is short production and distribution lead times, which helps match supply and demand so eventually minimize the gap between them. Another component is highly fashionable design capabilities that enhance the desires of consumers and increase sales (Cachon and Swinney, 2010). As a fast growing fast fashion brand, Zara is “the most innovative and devastating retailer in the word”, called by the luxury goods maker LVMH’s fashion director (Gallaugher, 2008). I will use Zara as a case to inspect fast fashion’s remarkable innovation for the whole fashion…

    • 2487 Words
    • 10 Pages
    Great Essays
  • Great Essays

    5. Methodology The Porter’s five force model is used to evaluate the competitive environment of the company. PESTLE analysis is used to assess the external environment of the company. SWOT analysis is used to understand the external and internal facto…

    • 1394 Words
    • 6 Pages
    Great Essays
  • Great Essays

    Abstract: The case is about a company, Dore Dore which manufactures knitted products and is famous for its hosiery segment. Dore Dore, a higher end brand, is known to provide quality products and superior customer service because of which it has been successful in entering the market for knitted products. Francois Marguet, the newly appointed Director of Operations is asked by the company’s head PDG to look into different issues and find a new angle to deal with them. Some of the problems are: Poor demand forecasting, increasing labour costs, high inventories, excessive lead times and ever-improving competition. The PDG wanted to know a way to improve the operations of the company to strengthen their competitive advantage.…

    • 1130 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The case study of The Swatch Company is mainly aimed to explore the management, marketing and positioning decisions that organisation make in order to enhance its product line within domestic boundaries. The case study analysis has significantly reflected the outcomes for the Swatch Company in the aspects of developing marketing and positioning strategies for significant international expansion. It is evident that the management of the company under particular consideration should consider the mono-brand retail strategy to expand business internationally. For the purpose, it is necessary for organisation to conduct in-depth analysis for making appropriate marketing and management decisions to significantly enhance the product line of the company…

    • 1064 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    1. Introduction The author has chosen, Hennes and Mauritz which is commonly known as H&M, the biggest fashion retailer in the world, which was established in Sweden, in year 1947. The choice was brought upon the interest and insights the author has upon the company after working four years for H&M in Singapore. 2.…

    • 1401 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Abstract: The Port of Singapore has a multi-pricing structure. The costs are arranged in three categories: port-calling costs, terminal-handling costs and concession pricing. Port-calling costs are the costs of all services offered to the vessel, ranging from access to quay or terminal, to pilotage, to the supply of water and bunkering, i.e. they encompass all ship-handling costs. Terminal-handling costs comprise costs for loading or unloading, storage, customs clearance, repacking and forwarding, i.e. they cover all services required for moving the cargo onwards through the port and down the supply chain. Terminal concession costs are the cost of acquiring a dedicated terminal.…

    • 2159 Words
    • 9 Pages
    Superior Essays