Global Strategy and Foresight

Global Strategy and Foresight
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Author Note

Introduction
Global planning and strategic foresight is very important for a company to grow and
achieve sustainability. Strategic Foresight can be defined as the discipline which is planning
oriented. Strategies are to be developed in a business context to achieve goals. In a global
environment, companies need to achieve sustainability in order to achieve success and thrive in
the fast and competitive world. Therefore, a company should be able to gain competitive
advantage, which allows a business to position itself over the major competitors operating with
the same market. There can be several ways by which a company may achieve sustainability and
competitive advantage in the market. The company, respect to which, the report will be based to
study the strategic objectives, competitive advantage, internationalism, innovation, is H&M.
Company Overview
H&M is a Swedish company which retails clothing. It has grown since 1947 and become
one of the most well recognized clothing brands across the globe. The fashion industry is
dominated by the brand, to a great extent, with its impressive offerings and fast fashion. The
company has over 4200 stores which are situated in various parts of the world, mostly across 72
countries. H&M, as one of the most leading brands of fashion, has been able to capitalize the
fashion market with its offline as well as online presence. The company has created more
popularity with the online availability of products and services, which are preferred by the
customers, in a fast paced, global world, in which fashion has grown up to be of great
significance among people. There are over 177000 employees who work with the company,
globally. The online presence of the company is spectacular, as the interested customers can
purchase the products of their choices through the online site, which can be availed in 47
countries and connect online markets. The company responds to the changing tastes and trends in

fashion and offer products in the market which meet the needs and desires of the customers
immediately, which can also be referred to as fast fashion.
Question one
Sources of Competitive Advantage and its relevance to management
Competitive Advantage is a very essential component when it comes to strategic
management. Management of a company might be difficult in a complex and global
environment. Michael Porter has contributed to strategic management to understand complex
aspects of business and how it can be enhanced to better suit the business realities. He has laid
important theories on competitiveness and how companies can achieve competitive advantage in
a fast paced competitive world, to be ahead of the rival forces and achieve sustainability
(Hm.com 2020). The models he has theorized can be utilized and practiced in companies for
their benefit and maximization of sales and profit.
According to Porter’s Generic Strategies, an organization can achieve sustainability and
be able to compete with the dominant competing forces in the industry. The profitability of a
company is a determinant for the position of the organization in the industry. Whether a
company has a relative position, below or above the industry average, it is directly related to
profitability. The most fundamental factor for achieving profitability above the industry average
is to gain completive advantage within the industry, which should be sustainable. Competitive
advantage can be categorized into two types, which include low cost or differentiation. There are
three Generic Strategies which a company gets lead to, when the two competitive advantage
types are fused with the various activities with which they can be achieved by the company
(Hm.com 2020). These three Generic Strategies are focus, cost leadership and differentiation.

The challenge which the companies might face, in order to achieve sustainable competitive
advantage, is to choose the right and effective way. Competitive Advantage can be referred to, as
the, advantage which an organization has acquired through their products and services, which
can be in terms of lower prices, great value or by other means, which satisfies the customers and
make them prefer the company over others operating within the same industry. These strategies
justify higher prices often as the customers receive better products, services and benefits.
Cost Leadership
The most effective and dominant method by which a company can achieve advantage in
the industry, is by producing on a large scale, which allows the business to grow as well as be
able to exploit the economies of sale of the industry. The market segments get dominated to keep
the costs low. If there is an average selling price while there is a company being able to make
their products available in the market at a cost which is near the average selling price, by keeping
the cost of production lowest according to the industry standards, then the company is most
likely to be most benefitted in the market. This is most applicable with large scale businesses,
which offer standardized products in the market. These products usually have little
differentiation and are acceptable to majority of the customer base. Sales are often maximized by
the company by offering discounts, which helps the company to be the cost leader of the industry
(Hm.com 2020). The companies can also expand their market share by following cost leadership.
Cost leadership should be followed by synchronizing operation across different areas of business
which include productivity, use of technology, lean methods of production, assert bargaining
power and increasing utilization of capacity. This ensures that a company is able to build
distribution channels which are most effective.
Focus