Free Essay

H&M Analysis

In: Business and Management

Submitted By lingli23
Words 857
Pages 4
Nowadays with fast growing world China has become one of the leading economies in the world, taking into consideration fast growing GDP of 7-10% per year. With fast-growing comes some issues as Green Trade. Green trade barrier appeared in China at the end of 20
The
Century. It was caused by the effects on the trade of import and export in China. However, Chinese government has begun to make the program to protect the environment from pollution. On the environmental issues, Chinese government combined prevention with control, made strict environmental, increased investment of environmental technology and promoted the development of environmental technology and industry. By the end of 2005, the quality of environment has improved and total emissions of major pollutants have reduced10% comparing with 2000. (Bloomberg, 2010) In this aspect, H&M set an example for many Chinese Companies. H&M promotes environmental awareness between their suppliers and employees. They adopted new technologies to use the resources as efficient as possible that could minimize waste. H&M respect the decisions which be made by nature. H&M adhere to use organic cotton, which grow in the traditional environment without any chemical (H&M, 2007b). Therefore H&M has adopted a sustainable cotton strategy that consists of three components: improving conventional cotton production, engaging in organic cotton production, and recycling cotton. Firstly H&M developed a newly Improving conventional production. H&M contributes to improvements in conventional cotton production through its participation in the Better Cotton Initiative (BCI). Its argument for this engagement is that nearly all cotton worldwide continues to be produced conventionally and that large-scale transition to organic production is therefore unlikely to happen quickly.BCI is a voluntary programmer, founded in 2005, with the aim of enabling millions of farmers around the world to grow cotton in a way that is healthier for their Communities and the environment while not costing more. BCI thus promotes the adoption of better management practices in cotton cultivation. In a first phase of its work, BCI has developed production principles. In 2010, its focus shifted to supporting farmers to enhance their economic position. Its ultimate purpose is to prove that the Better Cotton system can work as a mainstream solution for sustainability in the cotton sector. Currently, the following organizations participate in BCI: Adidas, Gap Inc., H&M, ICCO, IKEA, Organic Exchange, Pesticide Action Network UK, and WWF (BCI, 2011). H&M regards BCI as the key strategy through which the company aims to reach its goal of using only sustainable cotton by 2020(H&M, 2011d). Secondly H&M elaborated Organic cotton. Therefore H&M began using organic cotton in 2004 when it started to mix organic in the conventional cotton used for
Children’s clothing. Since 2007, the company has been se
Ling clothing made of 100%organic cotton. As is typical for large retailers, prices at H&M for organic garments are only slightly higher than those for conventional garments. In 2009, it used about8500 tones of organic cotton, compared to only 50 tons in 2006. The company
States that it is now one of the world’s largest users of organic cotton. Its goal is to
Increase the amount of organic cotton by at least 50% per year until 2013 (H&M, 2010c). However, even then organic cotton will make up only a small fraction of all cotton used by the company (H&M, 2010d).As a third approach H&M developed Recycling cotton textiles. Furthermore Homeports that it introduced 16 different garments made from recycled cotton with total quantity of more than 400 000 pieces in 2009. However, this figure indicates that its cotton recycling activities are only of a marginal size, relative to the amount of organic cotton and especially to the amount of all cotton used. In addition, H&Mengages in initiatives to recycle other fibers, like polyester, polyamide or wool textiles, as well as to use new materials, such as tinsel, a renewable fiber made from cellulose (H&M 2010d; 2011d).Finally H&M started using Media Technology. Since 1990 telecommunication has advanced. Today, China has a high subscriber rate of the media, such as TV and Internet has been popular in every family. ThereforeH&M expands online shopping in Asian countries like China. This way H&M could increase sales a lot. H&M created easy online shopping and m-commerce via Internet in China and also has developed new IT programs such as Apps for IPhones and Android in order to be closer to thecustomers.To sum up H&M has always keeps attention on customers and world changes such technology progress. Quick reactions to the world trends make the H&M one of the leading company in this are using technology which was described above. Technology is and good decision, which was made on time, is a key to the profitable future. Moreover only leading in innovations can make the better business environment via technology and increase the Company’s profitability.

Similar Documents

Premium Essay

H&M Analysis

...Communication and Organization October 2012 Strategic analysis of H&M keystrokes: 33.556 1 Executive summary This document is written to provide the reader with a knowledge of the structure of H&M. The purpose is to give a clear strategic analysis. It contains information about how H&M is structured. H&M is a company which is famous for many years. It is known for its fashionable dynamic amount of products for a cheap price. The brand is constantly developing and since competition is increasing, satisfying the customer is not enough. It has to stay ahead of the increasing competition. H&M is expanding by products for home edition and on-line selling. The brand is divers and it provides the customer with quality clothing and a great variety of choice. H&M is developed in Sweden and it has recently become well known worldwide. There are stores in the United Stated of America and even in the Middle East. However such a large operation requires good management. There is a head office in Stockholm which is in charge of the sub levels. In Stockholm the most important decisions are made. Furthermore the brand is expanding and using celebrities to promote the band. Recently H&M has suffered with bad communication and promotion from the media. The company had to adjust itself to gain trust from the customers. Future proposals for the company are to get new trustful suppliers and improve the working conditions of some manufactures. The company is responsible to have a...

Words: 5339 - Pages: 22

Free Essay

Asdasds

...European Foundation for the Improvement of Living and Working Conditions EMCC case studies Industrial change in the textiles and leather sector: Hennes & Mauritz Company facts Market dynamics and company changes Organisation and the market Employees Virtualisation of the workplace Research and development Contact details Source list EMCC case studies are available in electronic format only Wyattville Road, Loughlinstown, Dublin 18, Ireland. - Tel: (+353 1) 204 31 00 - Fax: 282 42 09 / 282 64 56 email: postmaster@eurofound.eu.int - website: www.eurofound.eu.int Company facts Hennes & Mauritz (H&M) is well known throughout Europe as a highly successful company selling low-priced fashion clothing and accessories. Erling Persson established the company in Sweden in 1947, and today the Persson family is still on the company board. In recent years, Hennes & Mauritz has been very successful, expanding its outlets at a rapid pace. Today it is one of the most important players on the retail fashion textile market. After opening its first store (as Hennes) in Sweden in 1947, the company expanded to the Danish and Norwegian markets in the 1960s and to the British market in 1976. In 1965, following the take-over of Mauritz, the company became Hennes & Mauritz. In 1974 the company was quoted on the Swedish stock exchange. Since then, Hennes & Mauritz has been entering several other European countries at a steady pace, being present in the USA since the year 2000. Today......

Words: 3803 - Pages: 16

Premium Essay

H&M Analysis Spain

...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......

Words: 3463 - Pages: 14

Premium Essay

H & M Market Analysis

...Analyse the market of H & M and how well the company aligns its operations with its market. H M market can be analysed by using the following dimensions as described by D A Aaker. a) Market size & Market growth: Despite the fierce competition and being in the mature market, H & M has gained reputation of one of the biggest fashion retailer in Europe. The company has been able to maintain and expand its market share/size in the international market by focusing on price, quality and fashion/ market trends. Company’s operations alignment: a) Since establishment, H & M has used cost leadership strategy (Porter 1980) by producing and selling stylish garments at low prices. b) In 1987, the quality was added to this business strategy to offer the customer added value to have gain further competitive advantage against its competitors. The company has various quality tests are carried out at the suppliers factories to ensure they adhere to the company’s quality standards. c) H & M has been able to market development strategy (Ansoff) making its market presence in 16 countries through 1,345 stores. The company operates in Europe, North America, Asia and Middleast (through franchise). d) A wide geographical market presence has enabled the company to diversity its business risk. e) Company’s close review of the store performance has enabled the management to act efficiently resulting in closure of non profit or loss making stores and opening of new stores at more......

Words: 1602 - Pages: 7

Free Essay

Market Analysis H&M

...MG 2033: Quality Control Assignment 1 : H&M Group 20: Dominik Flum Thies Fingerhut Introduction Hennes & Mauritz (H&M) is a 100 billion SEK company. It´s 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. Approximately 87,000 people on a full-time basis are employed at H&M. Strategy According Michael E. Porter (1996), the strategy of a company, per definition is selecting the set of activities in which an organization will excel to create a sustainable difference in the marketplace and which is also supported by Kaplan, R. S. and Norton, D.S. (2010) and the strategy of H&M confirms this definition. “Fashion and quality at the best price“ (H&M 2011a). That´s how Helena Helmersson, Head of Sustainability at H&M, describes the business concept. This statement implicates the three main goals of H&M. First H&M wants to sell a wide range of fashionable products and not just ordinary clothes. “People who come to an H&M store must be able to find everything: the latest fashion, reliable classics and their personal favourites,” says Ann-Sofie Johansson, H&M’s Head of Design. For that reason H&M continuously develops its collections so that each customer can find something new every time they......

Words: 2088 - Pages: 9

Premium Essay

H&M Presentation and Swot

...Introduction H & M Hennes & Mauritz AB, now operating as “H&M” is a retail-clothing company, launched in 1947 by Erling Persson who just came back from United States, bringing the idea of selling fashion products for women at a low price from oversea. The first shop called “Hennes” which only sold women clothes, opened in 1947, in Vasteras, Sweden. In 1968, the founder take-over “Mauritz Widforss” shops : Hennes changes its name to “Hennes and Mauritz” and the brand will begin selling fashion clothes to men and women from that day. Then in the 70’, the brand started to sell clothes for kids “Fashion and quality at the best price” (H&M) H&M has been at the forefront of affordable chic for some time now. From its Swedish base, Hennes and Mauritz has grown into a major multinational clothes and cosmetics retailer. Nowaday, internationally known for its fast-fashion clothing, H&M offers low prices fashion products for women, men, teenagers and children including everything from modern basics to high fashion. The company has over 2,300 stores in 43 countries, in 4 continents (Africa, Asia, Europe and North America) However, the company does not have their own factories but work with plenty of designers and buyers from all around the world. In 2011, H&M employed around 94,000 people and is ranked the first largest global clothing retailer, just ahead Spain-based Inditex (parent company of ZARA). The branding consultancy Interbrand ranked the......

Words: 906 - Pages: 4

Free Essay

H&M in India

...Ricky Cheers H&M in India In 2015, H&M opened its first store in India. The emerging market of India was an obvious choice for them. The Swedish retailer is actually behind its competitors of taking advantage of the Indian market. H&M opened its first store in 1947. It was located in Västerås, Sweden and specialized in only women’s clothing. The store was just called Hennes then. Hennes means “hers” in Swedish. In 1964, Hennes opened its first store outside of Sweden, in Norway. In 1968, the company’s founder Erling Persson bought a hunting apparel retailer called Mauritz Widforss. Soon they would start to sell men’s and children's clothing. The name was changed to Hennes and Mauritz and today we have H&M. After the first store opened outside of Sweden in 1964, H&M started to expand more into Europe. Next was Denmark, Switzerland, Germany and the United Kingdom. In 1976, the first store outside of Scandinavia was opened in London. In 1998, online shopping became available for H&M. The company did not expand outside of Europe until 2000, when it came to the U.S. Today there are over 400 stores in the U.S. alone. Worldwide there are over 3,700 stores in 61 different countries and it is the second largest global retailer.   H&M specializes in “fast fashion”. Fast fashion is a term used by fashion retailers to express that designs move from the catwalk quickly in order to capture current fashion trends. Fast fashion clothing collections are based...

Words: 819 - Pages: 4

Free Essay

Hm Analysis

...75 H&M ( , , 。 , , , 100029) , 。 。 H&M H&M , H&M ; ; ; ; Abstract:Crossover marketing is one of the most popular marketing strategies. With the continuous practice, it has been gradually becoming a global trend. As the leader of fast-fashion industry, H&M gains huge success around the world. Its fabulous fashion style and crossover marketing , these made the brand closer to consumers. This thesis has analyzed about the crossover marketing strategy of H&M and concluded some inspiration to China clothing business based on the research result. Key words:H&M ;crossover marketing ;Crossover of design ;Crossover of region ;Crossover of promotion ;Crossover of channel F274 1947 100 H&M 2009 132.65 29 。 、 CROSSOVER 。 。 / 。 。 H&M 。 1、 H&M 。 。 H&M 。 。 。 Lagerfeld 2005 Stella McCartney 11 CHLOE 、 。2004 Chanel 。 Karl Lagerfeld 500 H&M 。 。 GUCCI —— —Stella McCartney for 400 。 Karl “Karl Lagerfeld For H&M” Fendi —— —Karl Lagerfeld 。 、 。 、 H&M H&M 。 。 2004 2 73000 28 2008 。 2007 。 4 12 34 104041 H&M Millward Brown 2009 H&M 120 。 。 · 100 。 — 4 2000 2003 120 mini cooper —— —mini motion 2 part shoe。 、 1700 。 H&M 。 。 。 。 A 1671-8089 (2010 )02-0075-03 76 H&M。 、 H&M 。 H&M 。2006 VICTOR&ROLF 2007 Roberto Cavalli 2008 H&M 。 2009 。 2、 H&M 。2007 。 。 。 H&M H&M 。 Kylie Minogue Kylie 。 H&M 2007 。 H&M 1947 。 。 H&M 。 H&M 2006 H&M Alshaya 。 H&M H&M 、 。 、 H&M H&M 。 H&M 2 。 H&M 、 、 。 2009 2 28 。 。H&M 1964 34 H&M H&M 1700 H&M H&M 《 6 。H&M 2》 H&M H&M loves Kylie 。 、 M by......

Words: 432 - Pages: 2

Free Essay

H&M Intro

...H&M, which was formally known as “Hennes” (The Swedish word for “hers”) was founded by Erling Persson in 1947. The first store was opened in Vasteras, Sweden, and only women’s apparels were sold during that time. In 1968, Erling Persson bought Mauritz Widforrs, which was a hunting and gun store in Stockham. Soon enough, Men’s apparel was introduced and made available in the store. The company then changes its name to Hennes & Mauritz (H&M in short). Ever since then, H&M has expanded its store worldwide. H&M sells clothing and accessories that caters for women, men, teenagers and children for every occasion. It has expanded their stores around the world in Asia, Europe, Middle East & North Africa and North America and aims to increase the number of stores by 10-15% per year. In 2011, when H&M announced that they are launching their first ever outlet in Singapore, it was a much-anticipated event because their apparels are trendy, affordable and they are known for their quality. According to the data provided by the official website, there are over 94,000 employees, working in approximately 2,500 stores spread over 40 markets world wide. During the end of the financial year in November 2009, the company recorded an earning of SEK118,697 million ($15,473.3 million) which seen an increase of 14.1% over 2008. Operating profit in FY2009 was SEK21,644 million, an increase of 7.5% over 2008 whereas the total net profit was SEK16,384 million in FY2009 with an increase of 7.1%......

Words: 265 - Pages: 2

Free Essay

Dreadful Success of H&M

...especially in this time frame that we are living in. this is where the popular clothing brand H&M comes in. since Erling Persson acknowledges that the society is dependant and are up to date with the latest fashion trends and he has took upon himself to develop clothing to make the consumers a victim of “vanity slaves” Hennes & Mauritz which has been known H&M for decades is a very popular retail clothing company known for its trendy fashions targeted for women, men, teenagers and children. The company's founder Erling Persson traveled in 1946 and came up with the business idea which was to offer fashionable clothing at great prices. In 1947 he opened his first shop in Vasters, Sweden called "Hennes”, where he exclusively sold women's clothing. "Hennes" is Swedish and means "for her" and/or "hers". 1968 clothing retailer Mauritz Widforss took over, which led to the inclusion of a menswear collection in the offer and the name change to "Hennes & Mauritz" (H & M). In 1998, the company succeeded her initials "HM" which was the combination of both names. The company offers great items for everyone, that’s the major result of their success. The multimillion company has gained so much popularity that they have managed to branch out 2776 stores in 43 countries around the world. The company has successfully globalised their brand but they’ve done achieved this the cruel and easy way. H&M is one of the most successful affordable clothing companies worldwide. The question is how......

Words: 702 - Pages: 3

Premium Essay

Competitive Environment Analysis of H&M

...------------------------------------------------- ------------------------------------------------- Competitive environment analysis: H&M ------------------------------------------------- Introduction We chose to write our report about H&M for many different reasons. First of all, even if we focus on the French market, the fact that H&M is a global brand, operating from nearly everywhere in the world, both made us sure that we would have to analyze a very strong and efficient strategy, and to face some difficulties, deeply linked with the industry (such as problems of relocations or competition from Chinese textile) that would help us understand a strategy better. Besides fashion is an unavoidable factor of our daily life. It always seemed interesting to analyze what stands behind the doors of a store in which we shop. Presentation of the brand H&M is a Sweden based company. It was funded in 1947 by two Swede Hennes and Mauritz, which gave the brand their name. The firm designs, produces and retails clothing items and accessories (including cosmetic products). Its range of product includes clothing (innerwear and sportswear) for men, women and children. Presently, H&M operates in 28 countries. Its largest/major markets are in Germany, Sweden and the UK. The company also allows its customers to buy on the Internet through their online shop (not available in all countries.) H&M reflects international......

Words: 4487 - Pages: 18

Premium Essay

H & M Comparative Analysis Model

...be done relative top competitor. The correlation can be made in different ways. specifically with respect to every one of the three principle competitor canvassed for the situation think about for H&M are for instance are Zara Gap and Uniqlo tables 1. on the other hand, we can be made a request to direct a more engaged investigation by evaluating the aggressive position o H&M contrasted with just a single key contender for instance Zara . the more particular this examination gets in connection to the main rival, the more probable that H&M's position will seem...

Words: 880 - Pages: 4

Premium Essay

H&M Business and Management Analysis

...Hey fvdfvdf df df df df df df fd df fd fd df fd df df df df fd dfdf fddf dfdfdf fd fdfd fddfdfdffdfdffdfddf ddf The composition of the county courts varies but is regulated by law. The Copenhagen County Court has 49 judges and a President, whilst Aarhus, Odense, Aalborg and Roskilde county courts have a President and 15, 10, 10 and 7 other judges, respectively. 29 jurisdictions have two to four judges, whilst the last 50 jurisdictions have only one judge. At the preparatory and trial stages of civil cases only one judge presides. In criminal cases where the defendant pleads guilty to all charges presented against him or her, or when the prosecution does not ask for a sentence in excess of a fine, the case is also presided by a single judge. In criminal cases where this is not the case, the judge sits with two lay judges. Special rules regarding appointment of lay judges apply to maritime cases. In cases where lay judges sit with the judge, decisions are adopted by simple majority. In addition to their normal duties, county court judges act as notary public and bailiffs (in particular, the fogedret sees to the enforcement of judgments and legal claims), as well as administrators of bankruptcy proceedings and probate matters. Furthermore they administer the local land registry. In regard to the administrative tasks, these functions may be assigned to an assessor, which is a deputy judge. An electronic reform of the land registry system is being implemented, making the......

Words: 627 - Pages: 3

Free Essay

Analysis of Mash

...MASH The first thing I noticed was the awesome theme music. I remember seeing reruns of M*A*S*H as a kid and turning the channel immediately because the opening theme made it sound like a drama and not something funny. So when the lyrics of the song are sung at the beginning of the film it catches me off guard. “Suicide is painless”, is one of the stupidest lyrics I think I've ever heard but I think that was the point of director Robert Altman. I later did some research and found out the song was written by the director's 14 year old son. Something else I noticed right off the bat was how familiar a lot of the faces were but I couldn't put a name on any of them until the credits rolled, Donald Sutherland, Elliot Gould, and Robert Duvall being the most familiar. Up until a few years ago I had no idea M*A*S*H was a movie before it was a show. So when we were assigned the film I had expectations of seeing some of the cast members of the series. Apparently I was wrong because I didn't see any whatsoever. From what I've read, the show is based on the movie, and the movie is based on the book so all the characters are exactly the same. I have to say this. Hawkeye and Trapper John are now two of my favorite movie characters of all time. Sutherland and Gould played their respective parts so nonchalantly that you forget they're both actually trained surgeons in the middle of a very bloody war. I have to admit the zaniness of the film touched a bit too close to something I......

Words: 341 - Pages: 2

Free Essay

Sit-Coms

...All in the Family a show which aired from 1971-1983 was one of the most important and influential series that aired during the time frame mentioned above. This show did not shy away from addressing controversial or socially relevant issues. MASH (Mobile Army Surgical Hospital) aired from 1972-1983, this show was revolved around the 4077th MASH which was one of the surgical units stationed in Korea during the Korean War (1950-1953). The staff of a Korean War field hospital used humor to keep their sanity in the face of the horror of war. The issues that All in the Family addressed were religious, political, social and personal issues. Archie Bunker one of the main characters, was better known as a bigot, a prejudice blue collar backlasher against liberal and permissive values. He treated his wife Edith with no respect, always argued wit his daughter, and verbally assaulted his son-in-law. MASH addressed political and social issues. This show was mostly liberal and this show often criticized politicians who mired the United States in Vietnam (Davidson, Delay, Heyrman, Lytle, & Stoff pg. 932). Both All in the Family and MASH were condemned by the religious right because they believed that shows played a major role in corrupting the family values. Religious right considered the shows of the 1970s to being permissive, having positive portrayal of unmarried women, premarital sex along with drug use, profanity, homosexuality, nudity, violence and prejudices. The religious right......

Words: 373 - Pages: 2