What Is H & M Swot Analysis Model

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In view of the above findings, SWOT analysis is used to evaluate the business performance of the two companies. Strength
H&M has been expanding and responding to fashion trend rapidly to become a global leader. While Uniqlo emerges in the Asian market and is known as one of the top Japanese apparel brands, H&M attains a substantial market share in the Western market. In terms of promotional strategy, H&M adopts effective social media marketing strategies, such as online promotion via Facebook and YouTube, in order to raise public awareness and boost sales, as well as the return of investment in the long run. To maintain the quality standard, Uniqlo outsources the quality control process to an external party and H&M relies on its internal
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Moreover, the manufacturers have been accused of letting employees work in working conditions, known as sweatshops, which are notorious for mandatory overtime, illicit use of child labour, as well as poor wages. Consequently, ill-will from its employees would likely result in reduced brand loyalty, which is a penalty for H&M in unethical production scandal. Opportunity
Given the low cost of H&M apparel, H&M can easily take advantage of emerging markets and boost its revenue. Uniqlo occupies a greater market share in the Asian market with the support of expertise; in addition, it can quickly respond to variable customer demand and attract new customers with the products as described above. In the digital transformation of an era of big data, the digital marketing strategies of H&M become more effective. It is not unique for Uniqlo to contribute to the society by recycling the fibre and clothes and donating them to countries in Africa. Hong Kong H&M has developed a state-of-the-art technology to turn obsolete clothes into new clothing. Given Uniqlo’s successful human resources management, most of the experienced employees are willing to stay in the company. They deliver higher service standards and productivity than H&M employees. Hence, it leads to an increase in overall customer satisfaction and brand loyalty, together with the sales revenue.

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