...Title: Case Study: H&M in Fast Fashion: Continued Success. Word count:2638 Abstract 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. Three new potential strategies are tested by using the model of Johnson and Scholes, and one proper strategy will be retained to carry out an Action Plan. 1. Introduction In 1947, the incredible apparel retailer was founded by Erling Persson in Sweden. Over half century, Persson’s 34 years old grandson, named Karl-Johan Persson, took over H&M in 2009(Regnér and Yildiz, 2014). As a pioneering ‘fast-fashion’ retailer, H&M spread in 43 countries, with 2,206 stores worldwide (Regnér and Yildiz, 2014). ‘Fast-fashion’ can be defined as a quick response to up-to-date luxury fashion trends in an affordable price, which meets the deeply held desires for young customers (Joy et.al, 2012). The store expansion has continued at several places, such as Denmark, the United States, Great Britain, also in several European Countries like Spain, Germany (Barman and Petersson, 2002). In order to sustain the growth rate of H&M, the CEO, in 2011, invested more stores and opened another 218 stores on the Champs-Élysées in Paris to strengthen their brand and ensure the future expansion. Following...
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...SAVONIA UNIVERSITY OF APPLIED SCIENCES UNIT OF BUSINESS AND ADMINISTRATION, KUOPIO THE IMPORTANCE OF STRATEGIC MANAGEMENT A case study of H&M Ding Huiru Business Administration Bachelor’s thesis International Business April 2011 2 SAVONIA UNIVERSITY OF APPLIED SCIENCES SAVONIA BUSINESS Degree Programme, option International Business Author(s) Ding Huiru Title of study The importance of strategic management, Case study of H&M Type of project Date Pages Thesis 27.4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen Abstract Executive organization H&M in Kuopio,Finland Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction and some background information...
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...SAVONIA UNIVERSITY OF APPLIED SCIENCES UNIT OF BUSINESS AND ADMINISTRATION, KUOPIO THE IMPORTANCE OF STRATEGIC MANAGEMENT A case study of H&M Ding Huiru Business Administration Bachelor’s thesis International Business April 2011 2 SAVONIA UNIVERSITY OF APPLIED SCIENCES SAVONIA BUSINESS Degree Programme, option International Business Author(s) Ding Huiru Title of study The importance of strategic management, Case study of H&M Type of project Date Pages Thesis 27.4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen Executive organization H&M in Kuopio,Finland Abstract Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction...
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...| | External Environment Macro Environment Analysis using PESTEL The macro environment analysis will be done through the PESTEL model. Its factor are divided as follows, Political Primary political factors that may affect H&M and the fashion apparel industry are a. Political Stability b. Liberalisation of the world c. Taxes and Tariff a. The political stability of any country affects any business operation. H&M operate in 43 countries and hence its political risk is highly diversified. This diversity allows H&M to minimal political risk. b. The liberalization of the world to the clothing and textile industry is an important incident. This greatly increases the number of supplier globally and competition among them intensified. This is an opportunity to the industry as with large number of supplier, it allows the industry to choose the lowest cost supplier. c. The taxes and tariff that are regulates by the authority of the country affects company after-tax income. H&M who operate in 43 countries, any country changes it tax and tariff regulation will affect the company overall profit. The political stability and the liberalization of the world bring opportunity to the industry. Liberalization although bought competitor but also bought a large amount of supplier and opportunity which overall bring the operation cost down. Economic The...
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...Extreme Business-Models in the Clothing Industry - A Case Study of H&M and ZARA Kristianstad University The Department of Business Studies FE6130 Bachelor Dissertation International Business Program December 2007 Tutors: Håkan Phil Timurs Umans Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models. The purpose of this dissertation is to further expand the idea of why the two clothing firms H&M and ZARA chose different business-models. Our set of Complementarities for H&M and ZARA are based on the information derived from studying theories, the EU clothing industry and the two firms. Finally, Complementarities were analysed by conducting interviews. Our Complementarities partly explain why H&M and ZARA chose different business-models. However, our analysis is applicable for H&M and ZARA since the Complementarities are based on characteristics found in these two firms. The value of Complementarities can be used by other firms if they find their specific characteristics. Keywords: business-models, internalization, governance...
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...Cover Page Business Model Analysis in the fast fashion industry Table of Contents 1. Introduction 3 2. Industry environment of fast fashion 4 2.1 PEST analysis 4 2.2 Five forces analysis 6 2.3 Summary of findings 7 3. Analysis of Zara and H&M 7 2.1 Analysis of Zara 7 2.1.1 Vision, mission and objectives 7 2.1.2 Internal analysis 8 2.1.3 Business model canvas 8 2.1.4 Value proposition canvas 9 2.2 Analysis of H&M 10 2.2.1 Vision, mission and objectives 10 2.2.2 Internal analysis 10 2.2.3 Business model canvas 11 2.2.4 Value proposition canvas 12 2.3 Summary of findings 12 4. Comparison of business models between Zara and H&M 12 4.1 Comparison of business models 13 4.2 Comparison of value proposition canvas 14 4.2 Summary of research insights 14 5. Development of a new entrant 15 5.1 Strategic model 15 5.2 Business model canvas 16 6. Reflection on strategic insights 16 7. Conclusion 17 References 18 1. Introduction Fast fashion is a sub sector of the fashion industry that boasts fast response to consumer demand and efficient distribution of materials and products in the global landscape (Hines and Bruce 2007). Hines and Bruce (2007) also imply that fast fashion could quickly identify and capture business opportunities and transform them into products in a timely manner. As fast fashion retailers need to deliver trendy apparels to end customers, low cost production and efficient distribution become...
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...Strategic Analysis MGMT 460 By: Darien Jackson Table of Contents Chapter 1. INTRODUCTION 1.1. Company Background. 1.2. Vision and Mission. 1.3. Longterm Objectives. Chapter 2. EXTERNAL ASSESSMENT. 2.1 Michael Porter’s FiveForces Model. Chapter 3. INTERNAL ASSESSMENT. 3.1 ResourceBased View Analysis. 3.2 Financial Analysis. Chapter 4. STRATEGIES IN ACTION. 4.1 The Strategies. 4.2 Michael Porter’s 4 Generic Strategies. Chapter 5. STRATEGY ANALYSIS AND CHOICE. 5.1 The StrengthsWeaknessesOpportunitiesThreats (SWOT) Matrix. 5.2 The Strategic Position and Action Evaluation (SPACE) Matrix. 5.3 The Boston Consulting Group (BCG) Matrix. 5.4 The InternalExternal (IE) Matrix. 5.5 The Grand Strategy Matrix. Chapter 6. CONCLUSION. 6.1 H&M’s Competitive Advantage. 6.2 Vision, Mission, and Strategies. BIBLIOGRAPHY Introduction 1.1. Company Background In 1947 Hennes women’s clothing store opened in Vasteras, Sweden. Today the Hennes & Mauritz (H&M) Group offers fashion for everyone under the brands of H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories, as well as fashion for the home at H&M Home. Their business concept is fashion and quality at the best price in a sustainable way. H&M should always have the best customer offering in each and every market. H&M offers collections that are wideranging...
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...Economic Insights – Trends and Challenges Vol. LXIV No. 1/2012 24 - 34 Strategic Environmental Scanning and Organization Performance in a Competitive Business Environment Bayode O. Babatunde*, Adebola O. Adebisi** * Department of Business Administration, College of Management and Social Sciences, Osun State University, P.M.B 2008, Okuku Campus , Osun State, Nigeria e-mail: bayoogoga@yahoo.com ** Department of Business Administration, Federal Polytechnic Ado -Ekiti, Ekiti State, Nigeria e-mail: adebisiadebola@yahoo.com Abstract This work justified “the impacts of Strategic Environmental Scanning on Organization performance in a competitive business environment” by studying Nestle Nigeria Plc and Cadbury Nigeria Plc. The opinions of the selected respondents were sought by the use of structured questionnaire; the collected data were analyzed and interpreted with regression and coefficient of correlation method of analysis. Hypothesis one revealed that there is significant relationship between strategic environmental scanning and organization performance, the coefficient of determination (R2) is 0.297. It shows that 30% of the variation or change in effective organization performance is caused by variation in strategic environmental scanning. Hypothesis two also shows that the coefficient of determination (R2) is 0.301. It means that 30% of the variation or change in organization productivity is caused by variation in external environmental factors, which connotes...
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...in a SWOT Matrix? a. b. c. d. e. Two Four Six Eight Nine 5. What are two external dimensions of the SPACE Matrix? a. b. c. d. e. Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength 6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e. A strong industry An unstable environment A stable environment A weak industry A weak financial position 7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b. Stage 1 Stage 2 c. d. e. Stage 3 Stage 4 Stage 5 9. 10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration b. c. b. c. Divestiture Forward integration Cost leadership Related diversification 11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e. Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand Strategy Matrix QSPM. 12. Which of the following is not true about objectives? a. b. c. d. e. They should be communicated throughout the organization...
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...C:\Users\rf\Documents\A R C H I V 311013\F 160108\B820_Strategy\TMA\TMA01\TMA01_B820rf.doc I R M E N R E I N H A R D 301109\MBA FILES Druck: 20.11.13, 22:42 REPORT ABOUT EASYJET Seite 2/53 Executive Summary Deregulation has seriously changed the environment and structure of airline industry. Out of STEP analysis I have identified the following ain issues: Deregulation will stimulate competition, but also market growth Lower prices will cause focus on costs Focus on security measures will increase costs There is no need for added values in connection with prestige Analysing the airline industry by Porter’s “Five Forces” I have stated: Big Player and/or Alliances fight a price war, often using a second brand (Buzz, etc.) Big Players have not identified and reacted on the change in environment Few structural changes to support the need of cost effectiveness und to bring them in line with new customer requirements Because of the very static picture I have supported that analysis by BCG strategic model: BCG's Strategic Enviroments Matrix Many Source of Advantage FRAGMENTED Airline Industry SPECIALIZATION 2nd brand for Budget Segment STALEMATE Budget Airlines VOLUME Few Small Size of Advantage Big Global airlines which come from the „Fragmented Segment“ with a 2nd brand try to enter direct the „volume market“ taking their costs for product differentiation with them, causing not competitive costs Airliners like EasyJet...
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...marketing environment should analysis the macroenviorment, microenvironment, internal and external audits. Marketing environment not only influence by macroenviorment also of the company its own marketplace and its clients (Vignali et al., 2008, p. 361). Penrose (1959) and Hatch (1997) also suggested that competitive strategy requires both the exploitation of existing internal and external firm-specific capabilities in order to develop new ones. To analysis the microenvironment of a company, the competitive environment must be given the great importance, by trying to construct the competitive strategy, an assessment of the external environment will help to answer one basic question that is what will happen in the markets in which company choose to compete(Asch & Bowman, 1996)? By answering this, the company can therefore to find a well position for its company and make their own strategies but in the meantime, the other issues will be raised, that is what markets are the company are competing in? In order to define the market the firm is, company need to know well about what customers needs, and who it is the customers see the firm will competing with. Porter (1980) said that “the first step in structural analysis is an assessment of the competitive environment – the basic competitive forces and the strength of each in shaping industry structure. The second is an assessment of the company's own strategy-of how well it has positioned itself to prosper in this environment.” When...
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...March 2012 Cairo, Egypt. Abstract: From one hand the dynamic capabilities of firms are the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. Other hand, Human capital ultimate objectives are linking HR practices and knowledge with goals of the firm to achieve and develop Competitive advantages. Accordingly, linking both statements would generate that HC is not only working to achieve the organizations objectives and but also to formalize, maintain and develop the firm dynamic capabilities. HC should also work on sharing and collecting success stories, lessons learnt and implicit individuals' knowledge into institutional explicit knowledge. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining which is more difficult among horizontal levels but easy in the vertical levels applying the chain of command), shaped by the firm's asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is ampled where conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests...
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...IBA Kolding Table of content 1.0 Intro 3 1.1 Problem proposal 3 1.2 Strategic questions 3 2.0 Internal analysis 3 2.1 Strategic capability 3 2.2 VRIN 5 2.3 VRIO 5 2.4 9 Strategic Windows 5 2.5 PLC 6 2.6 Boston Matrix 6 3.0 External analysis 6 3.1 PESTEL analysis 6 3.2 Porter’s 5 forces 6 3.3 Market Life cycle 7 3.4 Benchmarking 7 4.0 SWOT 8 5.0 Strategies 8 5.1 Generic Strategy 8 5.2 Growth strategy 9 5.3 Logistics and supplier strategy 9 6.0 STP 9 6.1 Segmentation 9 6.2 Targeting 9 6.3 Positioning 9 6.4 M-mix 9 6.5 Profile 10 7.0 2nd question 10 8.0 Conclusion 11 1.0 Intro 1.1 Problem proposal How to develop H&M position on Spanish market and eventually create future growth? 1.2 Strategic questions •What is the problem? Define the demand for high end clothing for woman; increase the number of stores and the sales of products within each of 6 brands. •Why are we doing this? To be at the forefront of both fashion and sustainability •Objectives and goals. To bring fashion and quality at the best price in a sustainable way, with retention of values. •Current performance and where we want to get. There are 6 brands, 3600 stores in 58 markets worldwide and online shopping in 21 countries. Expansion target is to boost the number of stores, each year by 10-15%. 2.0 Internal analysis 2.1 Strategic capability 2.1.1 Resources and Competences 1. Tangible resources: ○ 80% of directly operated stores and...
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...| | | | | 5.1. Strategic Management in the P-O-L-C FrameworkLearning Objectives 1. Be able to define strategic management. 2. Understand how strategic management fits in the P-O-L-C framework. 3. Broadly identify the inputs for strategy formulation.What Is Strategic Management?As you already know, the P-O-L-C framework starts with “planning.” You might also know that planning is related to, but not synonymous with, strategic management. Strategic management reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives.A more formal definition tells us that the strategic management process “is the process by which a firm manages the formulation and implementation of its strategy.”[196] The strategic management process is “the coordinated means by which an organization achieves its goals and objectives.”[197] Others have described strategy as the pattern of resource allocation choices and organizational arrangements that result from managerial decision making.[198] Planning and strategy formulation sometimes called business planning, or strategic planning, have much in common, since formulation helps determine what the firm should do. Strategy implementation tells managers how they should go about putting the desired strategy into action.The concept of strategy is relevant to all types of organizations, from large, public companies like GE, to religious organizations, to political parties.Strategic Management...
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...Global and Transnational Business: Strategy and Management Second Edition Global and Transnational Business: Strategy and Management Second Edition George Stonehouse Northumbria University David Campbell University of Newcastle-upon-Tyne Jim Hamill University of Strathclyde Tony Purdie Northumbria University Copyright # 2004 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (þ44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wileyeurope.com or www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (þ44) 1243 770620. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services...
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