Sustainability of H&M in Competitive Apparel Market

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).

The SWOT analysis is a great way for companies or organizations to determine their brand and product’s strengths, weaknesses, opportunities, and threats. In order to more effectively determine these areas, separation of internal and external issues within the company or association is crucial.

When examining the potential for a new business or product, a SWOT analysis can help determine the likely risks and rewards. A SWOT analysis is an organized list of a business’s greatest strengths, weaknesses, opportunities, and threats. Strengths, which are the appearances of the business that give it an advantage over others, and weaknesses, which are features that place the team at a disadvantage, are internal to the company and can be changed over time but not without some work. Opportunities, which are basics that the business could use to enhance its strengths, and threats, which are elements in the environment that could cause concern for the business, are external and they are out there in the market,

Style, quality and price are some of the most significant competitive factors in the industry. Merchandise mix, brands, service, loyalty programs, credit availability, and customer experience and convenience are also key competitive factors. Primary competitors are traditional department stores, upscale mass merchandisers, off-price retailers, specialty stores, internet and catalog businesses and retail commerce. Specific competitors vary from market to market by include the following: Target, Nordstrom, The Gap, Walmart, Macy’s Inc., J.C. Penny, L Brands, Inc., Ross Stores, Inc., the TJX Companies Inc., and Bed Bath and Beyond Inc.

Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air” case study and concepts from strategic marketing

In order to become more aware of the competitive nature of the retail environment, our group conducted a competitive analysis over three different retail stores. In order to see a difference between stores, we knew we would analyze one discount/mass store, one department store, and one specialty store. From there, we chose one classification of products to analyze: women’s cropped workout leggings. We then graded this classification of products on multiple topics including: presentation of product, service, depth of assortment, location of store, shopability of classification, promotion/marketing of product, price of products and product pricing, return policy, and website. For grading purposes, we assigned each topic a score from one to five,

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

Swot analysis refers to the strength, weaknesses, opportunities and the threats that a business faces. Every company has its strengths, weaknesses, opportunities and threats that it faces.

SWOT is an acronym that simply stands the strength, the weaknesses, the opportunities available and the threats that the company faces. Every business organization or entity always has its points of strength, its weaknesses in terms of how it conducts its businesses. Furthermore, there are always opportunities that are available to any company in addition to those factors or issues that the company faces which are threats to the success of the business. From the case of Harley Davidson, there are various strengths, weaknesses, opportunities and threats that the company faced throughout its operations.

Porter’s five model is defined as the framework that evaluate the position of a company in the external environment with focus drawn on the level of competitiveness (Roy 2011). The framework considers factors such as rivalry, substitute goods, the power of suppliers and buyers as well as new entrants. Four forces can influence the success of Michael Kors. The first one is competitive rivalry. Here, the struggle is about maintaining performance despite different tactics used by different companies to increase sales. For instance, Ralph Lauren uses premium prices for quality products to differentiate itself, while Coach uses product variety within the line of handbags to remain competitive (Stewart 2016). Also, when the industry is flooded with similar companies producing similar merchandise, the probability of a company stagnating is high because consumers have a variety to pick from. Hence, the need to establish loyal customers.

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.

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.

Competition has became evident and essential in the market of the world’s most important companies. It has allowed consumers to receive ultimate value from the goods and services that they are seeking. In my case study this competition is between two companies that produce ponchos for the fashion industry. The company that we are introduced with is named Tela and their running mate, Saira, is the Goliath of this market. Tela is trying to stay afloat and gain more customers as the underdog. Their plan to reach out to prospective customers is to introduce their new marketing strategy. This strategy includes Tela’s new mission statement which would make consumers aware of their core values and advantages over the Saira. Tela is owned by

Based on the PESTEL Analysis, the external environment of H&M is hostile as there are more threats than opportunities. This is mainly due to the high unpredictable of Socio-Culture factor where customer’s trend preferences and expectations on apparel are difficult to gauge and manage. Furthermore, Economic factor further intensifies the competition as it tends to control customer’s willingness to spend.

Ambiguity: SWOT analysis creates a one-dimensional model in which each problem attribute is viewed as a strength, weakness, opportunity or threat. As a result, each attribute is seen to have only one influence on the problem being analysed. However, one factor might be both strength and a weakness. For example, locating a chain of stores on well-travelled streets that grant easy access to customers might be reflected in increased sales. However, the costs of operating high-visibility facilities can make it difficult to compete on price without a large sales