H&M SWOT Analysis Essay

3890 Words Mar 8th, 2011 16 Pages
H&M Analysis
H&M is a Swedish company founded in 1947. It is a family owned company controlled by Stefan Persson and family. H&M act in the fashion industry and are one of the really big global players with 2078 stores in more than 30 countries. In 2009 they launched H&M Home which sells interior textiles through internet. Recently H&M have launched several new store concepts. Other than the H&M stores there are now also Weekday, Monki, COS and Cheap Monday stores. H&M’s new concept stores and their success will probably play a greater role in the future if H&M wish to continue their fantastic growth figures. There are also uncertainties of H&M’s future since they are in the middle of a shift of expansion focus from the European
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The result will increase or decrease compared to local currencies depending on if the SEK have weakened or strengthened. No exchange rate hedging is carried out against this risk. Competitors
There are a wide range of competitors for H&M since they focus on a lot of segments in the clothing industry. The different concepts such as COS which is aimed at higher price segments will also face different competition. Six of the major competitors which can be said to compete with H&M in its core business and challenges H&M’s price leadership strategy are Zara, Uniqlo, Forever 21, Urban Outfitters, Target and Top Shop. In Sweden the main competitors are Lindex, KappAhl and JC. All competitors sell pretty homogenous products which can easily be replaced. To stay ahead of the competition it is important to work hard on brand and image. The company that can offer the market the "best" fashion for the lowest possible price will be the one staying in front. Strategies
H&M seem to have a very clear and easy to understand business concept. H&M seem to be very good at following their concept and this might be a reason for their success over the past six decades. When you open the annual report the business concept is the first thing you see. This is the case for a lot of companies but one thing that separates H&M’s concept is the fact that it is easy to understand and not to abstract. H&M’s business concept is

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