Business Analysis : Hennes & Mauritz

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'Hennes & Mauritz ' commonly known as H&M, was in 1947 a recently inaugurated ladies ' store in Västerås, Sweden. It was originally named "Hennes" which is Swedish for "her 's". Hennes saw its name change to Hennes & Mauritz in 1968 when the founder Erling Persson captured the premises and stock of a Stockholm hunting equipment store called Mauritz Widforss. The first store that opened outside of Scandinavia was in London, UK in 1976. H&M exists in 53 nations and starting 2013, employed around 116,000 individuals with 3,200 stores (Marketline, 2014). It is ranked the second largest worldwide clothing retailer, just behind Spain-based Inditex (parent organization of ZARA), and leads over third largest universal clothing retailer, United…show more content…
Celebrities wearing its Conscious Exclusive Collection on the red carpet have made an impact, demonstrating a brand shift from cheap chic to fashionable. Employing celebrities like Gisele Bündchen and David Beckham for their advertising campaign is a huge indication of the superior performance achieved by the company. Fast fashion is an efficient and compelling strategy that always keeps this design-driven brand on the move. Marketing Environment " A marketing environment is the actors and forces outside marketing that affect marketing management’s ability to build and maintain a successful relationship with target customers. " (Kotler, 2006). There are two critical perspectives on the marketing environment, namely the macro-environment and the micro-environment. The Microenvironment consists of the factors that affect the company 's ability to serve its customer - The company, suppliers, marketing, channel companies, customer markets, competitors and publics. (Kotler, 1999). This environment affects the organization directly. Micro is assumed to be small, but this can be misleading. Micro here defines the relationship between firms and the driving forces that dominate or govern this relationship. I am going to use the Porter 's Five Forces model to analyze H&M 's Micro Environment. Bargaining Power of Customers H&M has a broad customer base. Most of the buyers in global apparel retail industry are individual customers. On one hand, this fact does not

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