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.
Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.
A company, such as H&M for example, faces many challenges because selling clothes is a very competitive field. One of the challenges H&M face is the competition of other clothing stores, such as Zara’s and Forever21-these clothing stores sell very similar products at different prices. H&M is known for their originality, convenience and great prices but they are not the only company providing these benefits. Forever21 provides their audience with
Under Armour has some competitive advantages that will help the company expand in the domestic market as well as the international market. The company offers a wide variety of fitness products. UA is also very recognizable because the company’s logo is simple and easy to recognize. UA also possesses strong brand loyalty and cost advantage compared to other competitors. However, Under Armour lacks international market share, lack of product differentiation compared to competitors, and lack of female and children’s market. UA needs to expand their target markets internationally and build their women’s and children’s market. UA should have
As adaptation of entry mode in different markets, H&M get success in international expansion in retailer industry and now become market leader in this industry.
Suppliers are in great power over their employees, this is when ethics is involved as employee working for the suppliers would be giving out very low wages, disrespect to employees, in which can be covered up and ensure the brand doesn’t find out. However with the power of the internet, the world’s knows and as the brand is associated with them, it ruins the brands image.
* Inbound logistic: One of the core values of H&M is the sustainability, and, thus, sustainability in production. The aim of H&M is to offer good quality fashion at the best price and to achieve it, H&M tries to avoid the waste. In this purpose, all the waste coming from the manufacturing, the transport and other sources are planned to be reused, recycled and reduced.(H&M, 2012)
Clothing brand chain has been a trend over the world, which has gained much profit for the clothing retailers, such as H&M, ZARA, C&A and so on. They are very good at using their special marketing strategies to manage their brands. While in China, there are many brands try to use this manage model, whereas, they are still inexperienced, whose marketing strategies should be improved. So it is worthy to study. This paper introduces what marketing strategy is, and how important it is. It uses an international brand-H&M in UK and a Chines local brand Metersbonwe for example, by comparing their marketing strategies
This paper provides an insight into the business profile of Forever21 Company. An analysis of the company’s objectives includes competitive strategies, external and business environment, the strengths and weaknesses of Forever21 as a major clothing company. This study evaluates the strategies employed, the alternative possible strategies or market play and the best selected strategic move that Forever21 may bank on to expand its capacity and exploit the opportunities in aggressive and temporal markets. This analysis factors in marketing methods, strategies, competitive advantages, disadvantages and methods of how Forever21 can capitalize on these factors and move forward toward greater paradigms of success. Forever21 are a middle level multi-billion clothing company that provides products affordable to young ladies in their teens across the world. This company has multiple retail stores and keeps opening new outlets in various countries; various market segments while other non-performing outlets close shop. Forever21 has its major market niche in ladies wear for young ladies who have relatively small incomes, which makes their disposable incomes on the lower side. Forever21’s business opportunity is to fill this gap and it has. Through comparatives strategies, Forever21 has managed to source some of the cheapest labor in the clothing market by outsourcing production to Asian markets. This gave them the advantage of
The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. (QuickMBA n.d.)
H&M is one of the most popular worldwide fashion clothing company that attempting for sustained brand awareness, market share and income growth. This report will practice the justification behind this statement, including the company’s current situation within Thailand clothing industry and current trends by using various difference tools such as PESTEL, Porter’s 5 Forces, and SWOT. This will then show a detailed marketing
Mr. Yanai, the CEO of UNIQLO demonstrates that UNIQLO is the only world’s Life Wear brand that represents everyday clothes as it is inexpensive, unique, fashionable and has high quality (Loeb, 2015). This is because UNIQLO follows the strictest quality safety which set by The Quality Establishment
Over the next few three years H&M aims to becoming more competitive winning competitive they are all recycle clothes in a recycle fashion with a brand
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.
Fashion has a limited life cycle, and there is always some part of collection will not be able to accept for the customers. However, H&M try to execute a sustainable fashion for each collection and combination the right quality with the right price.
The media product strategy for selling fashion wear online will involve an analysis of the existing media, such as Facebook, which has the highest number of active users at 2 billion. Various fashion brands are using different online platforms to push their products and increase penetration level on the social media platform through consistency and creative ideas to capture the audience’s attention. Therefore, Facebook is the best platform of attracting potential clients.