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H&M Expanding to the Brazilian Market.

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International Business Environment
IBMS 2011
H&M Brazil

Brazil

Module 4 International Business Environment

Fryslân International Consultancy Group

Authors:

Docent: Meinard Fransen

Foreword
This document contains an economical business report on the subject of the possibility of H&M expanding to the Brazilian market. Is the Brazilian market a suitable and lucrative market to expand to?
It is issued by Stenden University of Applied Sciences, for the module “International Business Environment” within the International Business and Management study program, as a module assignment.

After dividing the workload within the first couple of days, we focused on writing each part individually and gathering and combining all parts in the end. This type of group work was a drawn-out process, but in the end it all worked for the best and we as the authors hope you enjoy reading this report.

CONTENTS Foreword 3 1 Introduction 5 2 External Environment 6 2.1 Economic Situation 6 2.2 Demographics of Brazil 10 2.3 Import/Export (international scope) 10 2.4 Market environment 11 2.5 Competition 12 2.6 Legal; business format 13 2.7 Social aspects 13 2.8 Five Forces Analysis 14 2.9 Conclusion: Opportunities and Threats 16 3 Retail Formula 17 3.1 Business concept 17 3.2 International exposure 18 3.3 Target groups 19 3.4 Strengths and weaknesses 20 3.5 Recommendations of the Retail Formula 20 4 Conclusions & Reccomendations 21 Bibliography 22

1
Introduction
Hennes & Mauritz (H&M) is a clothing company with around 2.200 stores, operating in 40 countries and employing approximately 87.000 dedicated people from different cultures. The start of this success dates back to the year 1947, when the then thirty year old Erling Persson left Sweden for a trip to the United States. On

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