Essay on H&M in Accounting

2734 Words Nov 16th, 2014 11 Pages
Content Page
Questions
Question 1. Using Michael Porter’s five forces model, evaluate the importance of Barriers to Entry to the fast-fashion industry. Support your arguments with evidence from the case study. (20%)
Question 2. Conduct a value chain analysis to assess H&M’s capabilities and derive its core competencies. (35%)
Question 3. Based on these competencies identify the generic competitive strategy which H&M is pursuing. (10%)
Question 4. It is suggested in the case study that the fashion industry is full of companies that have confidently expanded into international markets but later have been forced to retreat. Analyze the international strategy choice being pursued by H&M and assess the extent to which
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This may become a weakness in the management of H&M.For the operation of H&M, it opts for renting store premises to increase flexibility and adaptability. In addition to this, H&M will do the product testing about the quality control. Furthermore, a new interiors program is created to catch up with the latest trend.Under outbound logistics, only transportation is handled by the external contractors. However, H&M deals well with the distribution by offering the best price to avoid middlemen. H&M is cost-conscious and thus can reduce the costs being incurred. Also, daily shipments are available to H&M which implies an effective and efficient shipment scheduling system.Considering the marketing and sales, H&M has been collaborating with 200 in-house designers and several famous ones. In addition to this, it has launched long-term advertising campaigns with high-profile celebrities which can indirectly boost the sales and build up its image. Online promotion is also available for customers for the latest updates.The last category is the service. Usually it refers to the after-sale service that how well a company can do on the quality control. H&M just put little focus on after-sale service such as the customer support. This appears to be a weakness to H&M.Apart from inbound logistics and the service, other activities are considered as H&M’s strengths which makes H&M being world leader.
Concerning the two types of the

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