Analysis of Internal and External Environment of H&M: A Study of Strategy, Enterprise and Innovation

Report

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analysing internal environment of H&M....................................................................................1
Analysing external environment of H&M...................................................................................3
Analysing competitive forces within the retail industry..............................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategy, enterprise as well as innovation describes the study which helps individuals in
order to develop ideas in order to operate and manage their organisation and innovation along
this it prepare them to face future challenges such as political, social and cultural in
contemporary governments, businesses as well as non-profit making organisation (Miao, 2021).
The following report is about the H&M which is multinational retail organisation as well as its
headquarters is in Stockholm, Sweden. The company is founded by Erling Persson in 1947 in
Vasteras, Sweden. It offers fast fashion clothing and accessories for women, men, teenagers as
well as children. It report covers analysis of internal and external environment with the help of
VRIO analysis and PESTLE analysis along with the Porter's five forces frameworks.
MAIN BODY
Analysing internal environment of H&M
VRIO analysis refers to an effective framework for an internal analysis which help
companies in order to identify their advantages and resources that provide competitive
advantages to them (Wendee and Sussan, 2018). It includes four important factors that help
company to analyse their capabilies and resources which includes Valuable, rare, imitable and
organised. In context of H&M, its capabilities and resources that provide competitive advantages
are described below:
Resources and
capabilities
Valuable Rare Imitable Organised Competitive
Implication
Supply chain Yes Yes Yes No Competitive
advantage
Technology Yes Yes Yes Yes Sustainable
competitive
advantage
Research and
development
Yes Yes No No Partly competitive
advantage
Service quality Yes Yes No No Competitive
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