Analysis of Hennes & Mauritz

Running head: ANALYSIS OF HENNES& MAURITZ
Analysis of Hennes & Mauritz
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ANALYSIS OF HENNES& MAURITZ
Resource and Capabilities
An organizations resource and its capabilities represent its competitive assets that can be
used to compete and gain the ability to succeed in the market. The Hennes& MauritzCompany
operates in over 69 markets across 4700 stores with 114,586 numbers of employees. The brand
stands to be $19 billion in the market. Human capital engaged in its production and managing
process is hired from across the countries (About.hm.com 2018). Its main resource stands out to
be its cross cultural employees working with the brand. The capabilities can be considered as its
high responsiveness of the trends that it adapts to attract more of its customers (Arrigo 2018). It
has a good purchasing power and utilizes its suppliers accordingly to achieve the target. The
brand collaborates with best designers such as Balmain, which turns out to stand as the capability
for the company. The company has a strong social media presence and uses long term
advertising campaigns.
VRIN Analysis
VRIN framework stand for the analysis of valuable, rare, imitate and non substitutable.
Valuable
The brand has a strong culture involvement in its process with the management following
non-hierarchical style which helps to generate innovation from within the organization which is
valuable. The company has a strong adaptability to the new market environment with ensuring
improvements assuming the given feedback of the customers with the help of media relationship;
this is possible for its diverse workforce (Nadeem et al. 2015). Its advertising campaigns also
help to grab the customer’s attention which is really important to H&M to make it stand unique

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ANALYSIS OF HENNES& MAURITZ
from its competitors. The competent leaders, strong corporate culture & Persson family’s legacy
are the valuable of H&M. In addition H&M is the leading user of Organic cotton in the world.
Rare
The leadership of H&M becomes rare with its market and brand positioning methods as
compared to its competitors (Youell 2013). It is essential for every company to maintain its
resources securely because the internal clients of the company are its main sources that needs to
be distinguished from others to generate effective management. Its human resource is considered
to be the organizations sustainable advantage. Encouraging experimentation, trial and error
learning, decision making and trying of new ideas is rare to H&M.
Cost Imitate
Procuring more cost in operating the store, purchasing the garments with its best
designers across the world leads to temporary competitive advantage (Shen 2014). Similarly,
brand and reputation cannot be imitated because the company has strong influence in its market
across the world is considered to sustainable competitive advantage to the organization. The
unique design of its stores are cost imitate and competitive advantageous also.
Non Substitutable
The human resource management, the family majority and long term membership leads
to financial support and supply chain management are crucial departments in the organization
that cannot be functionally substitutes (Li et al. 2014). All lead to sustainable competitive
advantage of the organization along with the three generation of the Persson family contribution.
H&M’s business model: fast-fashion and cheap and chic serves as a non-substitutable resource
which can be termed as temporary competitive advantage.