Entry Strategy of H&M

WHSmith can be broken down into 3 market segments. Firstly, the High Street division accounts for 565 stores in prominent locations with a high footfall (WHSmith PLC). Secondly, the Travel division consists of 490 retail outlets in airports, railway stations, motorway service stations and hospitals. Thirdly, the company operates online.

I believe that H&M’s future growth depends a lot on how they will expand online and their sustainability. H&M launched their online store in the US in 2013, but has had some negative response. They offer free shipping, but the costs for the returns will be deducted from the credit of the returned merchandise. Costumers believe that returns should be free or that they should have the possibility to return in stores, which at the moment is not possible. For H&M this is an issue because of the high volume and costs of returns. To stay true to their sustainable image,

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).

* Procurement: As it is the second Europe’s cloth retailer company, for the production H&M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the production’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, H&M can easily change its suppliers. Moreover, due to its huge size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price.

Even though H&M follows a strategy which differs significantly from Inditex’s approach it is the closest competitor from the financial point of view. H&M differs from Zara because it outsources all of the production, it is more price oriented and spends more money on advertising. But both companies are based in Europe, are fashion forward at lower price retailers, and have a strong international expansion strategy. Exhibit 6 indicates that the financial results of Inditex and H&M seem to

In order to be competitive, companies have to satisfy customers’ requirements. They have to provide a fast and dependable service at reasonable price. There are five performance objectives that lead companies to competitiveness. They are:

Firstly, it is important to remember the current situation of Trader Joe’s in USA, the company has over 400 stores in 30 states and is the leader in customer service in USA. However, the company is not on the top ten supermarkets in sales category. Additionally, Trader Joe’s just operates in USA and does not have experience in other international markets. (Peterson, 2013)

Founded in 1947, H & M Hennes & Mauritz AB has become one of the major competitor in the fashion industry (Alexander, 11). H&M produces clothes and accessories for men, women, teenagers, and children. The clothing-retail company has its headquarters in Sweden. The company has more than 4,000 stores in over 60 countries globally. The number of employees has surpassed 132,000 dues to the increased market expansion. Currently, the company faces stiff competition from other retail companies such as the Wal-Mart, Zara, Nordstrom, and Primark.

This is a big deal actually, going internationally and being the market leader in the home country at the same time. They have adopted a great strategy and supported it with advertisements. For Asian market focusing on Asian women, their skin and face characteristics and also they have analyzed the climate carefully and designed products accordingly so that they won’t go down early. Also keeping low prices for Asian market can be important, due to economic conditions and customer preferences, since they are price sensitive.

In this assignment we will review different aspects of Globally Integrated Marketing Strategy and our focused organisation will be Marks & Spencer. We will focus on its IMC practices and how they act as part of the organisation’s strategic framework. The study will consider M&S operations in UK and UAE for its research purposes and will elaborate how resembles as well as differs in the two environments. Finally, with the launch of a new product line we will try to incorporate how a new product needs to integrated into the existing overall structure and marketing framework of the organisation.

Sweden 's Hennes & Mauritz, more commonly known as H&M, is a retail-clothing company, famous for its reasonably priced “fast fashion.” With 6 different brands sold in 3,300 stores spread out over 54 countries, the company is second only in size to its direct competitor Zara. H&M uses psychographic segmentation, targeting at customers who belong to the group of fashionable and trendy consumers, who see shopping as a social activity providing pleasure in their daily life.

H&M was established in Västerås, Sweden in 1947 by Erling Persson. We now sell clothes and cosmetics in around 2.200 stores around the world.

H&M became one of the biggest worldwide leading fashion retailers. Until Year 2010, H&M has around 2,000 stores in 37 markets (Data from H&M-US Website). Details of market overview of H&M can be referred to Appendix I.

Each organization requires different strategic planning, as there is no single strategic planning model that suits all organizations. Every organization has to develop model of strategic planning according to its own development, its nature of business and as per their own planning process. These models provide an extent of options on the basis of which different organizations might be able to select an approach and initiate to grow their own strategic planning process. Any organization might select to combine the models suitable to their planning process, for example, they can use a Basic model to recognize strategic issues and aims, and then they can select an issues-based model to develop approach to initiate the issues and grasp the

Hence, H&M shall remain in the textile industry as they are able to leverage on their core competencies to out-win their competitors with the above mentioned recommendations.