H&M Company Analysis Essay

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COMPANY ANALYSIS & PROBLEM IDENTIFICATION MARKETING MANAGEMENT BMKT601 TABLE OF CONTENTS Contents 1. EXECUTIVE SUMMARY 3 2. FAST FASHION 4 3. ENVIRONMENT ANALYSIS 4 3.1. Political Factors 4 3.2. Economical Factor 5 3.3. Social Factors 6 3.4. Technology Factors 6 4. INDUSTRY ANALYSIS 6 5. H&M 8 6. STRATEGY 10 7. SEGMENTATION 11 8. TARGETING 13 9. POSITIONING 14 10. CONSUMER BEHAVIOUR 15 11. MARKETING 17 12. SUPPLY CHAIN 22 13. CONCLUSION 24 14. BIBLIOGRAPHY 25 1. EXECUTIVE SUMMARY The fashion industry is evolving to ever faster incorporate catwalk design to high street stores, with strong competition within an oligopoly market. The ever increasing speed of product…show more content…
Short lead times are made possible through localised production, inventory monitoring technology and expected distribution methods. Inditex, which owns Zara and is also the world’s largest clothing retailer, delivers new products to its stores twice a week whilst H&M is only capable of designing, manufacturing and distributing new products in three weeks by comparison (Cachon and Swinney2011). The second component of the fast fashion system, the product design, is made fast through in depth analysis of consumer behaviour and industry tastes in order to identify unexpected fads and reduce lead times. Benetton for example, employs a group of “trend spotters” and designers throughout Europe and Asia in order to analyse market movements and also pay close attention to popular fashion shows. 3. ENVIRONMENT ANALYSIS PEST stands for Political, Economic, Social and Technical and is a tool used to analyse external factors affecting company performance and aid in monitoring trends in the external environment (Kotler and Armstrong, 2010). 4.1. Political Factors Politics has a profound effect on business in the UK, and plays a critical role in developing any business strategy. Should related political factors fail to be considered there can be resultant loss in profit and elimination of the best market strategy as an option; Simkin et al. (2006) point out that a national political
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