Case Study: H&M in Fast Fashion: Continued Success. Essay

3141 Words Dec 25th, 2014 13 Pages
Title: Case Study: H&M in Fast Fashion: Continued Success.

Word count:2638
Abstract
This report contains the analysis of value and culture of reputable apparel retailer H&M, as well as three analysis method, which is PETEL, Porter’s five forces, and VRIO framework, to analyse the external influence factors, competitors, and competitive advantages of H&M.
Three new potential strategies are tested by using the model of Johnson and Scholes, and one proper strategy will be retained to carry out an Action Plan.

1. Introduction
In 1947, the incredible apparel retailer was founded by Erling Persson in Sweden. Over half century, Persson’s 34 years old grandson, named Karl-Johan Persson,
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H&M cruelly underlined the continuity of its expansion strategy in long-term perspective (Regnér and Yildiz, 2014), which means continuing to open stores ultimately (Barman and Petersson, 2002). It is planned that H&M will establish another 300 new stores, especially China, the United States and the United Kingdom as the largest growing market. Despite the countries mentioned before, South America, Latvia, Indonesia, Bulgaria and Thailand will be involved (Regnér and Yildiz, 2014).
In this report, values and culture of H&M will be clarified at the beginning. Following that, PESTEL, Porter’s five forces, and VRIO analysis will be elaborated. Three new strategies will be tested and one relatively appropriate strategy will be used to make action plan.

2. Values and culture
Corporate values are ‘the operating philosophies or principles that guide an internal conduct of the organization and its association with its clients, partners and shareholders’. It is also a fundamental and long-lasting belief that specific mode of conduction highly valued by the organization’s membership’ according to IBM corporate responsibility report (2002, What is the value of company).
The values of H&M, which guide the teamwork and lead to success, are strong and clear, involving an organization belief in people, and other values like

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