Factors Affecting The Clothing Company H & M

1. Political: “issues affecting our international vendors could materially adversely affect our business and financial performance.”(Page 8.)

Hennes and Mauritz AB is a Swedish retail-clothing company, which has expanded enormously in the past years. H&M has grown from one single store in a small town in Sweden to a multinational ranked as the second largest global fashion retailer with its 3,600 stores in over 58 countries and $22 billion in annual sales (The World’s). This incredible story of success makes us wonder about their strategies and how they managed to get where they are today.

Political factors refer to the legal activities and political rules that may influence the business in some way. However, ASDA will continue to face many changing in the business for better or maybe worse when it comes to changes in government laws, for example, taxation and unemployment. The government is encouraging business to create or provide different jobs for the consumer this may affect or puts pressure on ASDA as they have to meet the all the government rules and regulation while continues to run the business according to the law (Worthington & Britton

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.

Attention getter: Brands like H&M, forever 21, Zara have a dark secret that they don’t want you to know. Digging deeper in the world of fast fashion I found out of the vicious cycles that our clothing is manufactured in.

* 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.

The companies that were chosen for a company analysis include Macy’s, Kohl’s, and Burlington. Since the retail industry has been lagging behind lately, these companies will help determine the prospective financial investment in the retail industry. As Macy’s as our primary company, we chose Kohl’s and Burlington to be the two comparative companies. These companies are comparable due to the same SIC code of 5311 in the subgroup of department stores. These companies offer similar products and services with little differentiation between the three.

Technological environment is the combination some factors which develop new products and also create opportunities and threats for the company. Not only does it benefit marketers greatly creating new product and market opportunities, it also creates opportunity for customers to consume new products. The evolution of technology has provided many platforms for marketers. New and improved technology can either profit the organization, or create threats of more competitors in the market. In the sportswear industry, technological factors could cause unemployment as machines replace workers. It could, however, reduce cost as more products can be made at a lower cost and lesser amount of time compared to labor made garments. Moreover, technology can benefit the sportswear marketers as a form of market research as social media and internet has outrageously developed over the past decade. Social media famous people can promote the sportswear by just wearing the items and posting a picture on the internet or simply advertising it at a really low price, almost immediately increasing sales. Political factors are those that affect the

Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules

In this report we will focus on Singapore’s Uniqlo companies by providing a PESTEL analysis and review of the Porter’s Five Forces analysis to gauge the company’s competitive environment. Lastly,

American Apparel, is an American multi-national clothing manufacturer, distributor and retailer since 1988based in Los Angeles, California. Dov Charney, a Canadian business man was a founder and former CEO of the company. He was involved in nearly every part of the business process from design and manufacturing to marketing. The Ernst & Young named Charney Entrepreneur of the Year in 2004. He was also termed "Man of the Year" by various fashion

In this report, an inside look will be taken on Hennes & Mauritz AB (H&M). We will analyse on it using PESTEL, Porter’s Five Forces and SWOT to get a clear concept of what H&M is today and where it can go. This positioning will be helpful in strategy designing.

Since H&M opened the first shop in Sweden in 1947, using an American concept of shops selling stylish clothes with low prices bring H&M successful in the domestic market. H&M started to expand internationally from 1964. Not only Europe market, H&M also enter in North America, Asia and Middle East market.

This report examines the strategic management of the international iconic fashion company- Prada. In this report we conduct an analysis of the external and internal environments and identify strengths, weaknesses, opportunities and threats of the Prada. The key issues identified in the environment analysis is the Prada’s future market especially China. The report reviews the financial and non-financial objectives of the company’s strategies and their affects for the stakeholders. Prada is engaging in their attempts to achieve their objectives. The strategic

Various heads of these departments alongside a board and an assigned president then made decisions for the organization thereby adding a ‘visible hand’ to the affairs of the organization leading the enterprise in a set direction. Another point to be taken under consideration here is that an industrial enterprise, in addition to the functional units, also expanded in other ways. There were defensive expansion trends i.e. horizontal or vertical expansion, and the offensive ones, i.e. geographical and product diversification. Further evolution in the industrial enterprise led to performance monitoring measures i.e. inclusion of a long-term and innovative corporate strategy with middle and the top management being the sole decision makers. However, with labor intensive industries i.e. printing or textiles, they don`t offer a competitive advantage for the integrated enterprises (Chandler & Montgomery 1979: 71). Therefore, in these cases, mass retailers tend to dominate with large purchasing units while eliminating other intermediaries.