H&M Competitive Advantage | Assignment

H&M COMPETITIVE ADVANTAGE
• Trends in Fashion market:
Sustainability- the sustainability of the companies is essential for
the companies in order to have competitive advantage. (Dach and
Allmendinger 2014)
 rise of the influencers- the use of social media and the popularity
of the pop influencers embarked the fast fashion model.
 Merging of tech and fashion- digital platforms enabled the trend
of fast fashion to have a more global expanse.
• Other Mega trends:
Competing Rivals- the rivals of the company like Zara and
Primark are rising gradually to the peak. The company thus
need to have competitive advantage (Finster and Hernke 2014.)
retaining the nostalgia of being the leading brand-
• 5-10 year scenario
Indian Ascent
End of the ownership strategy
Digital spread
Transparency
• .
• Possible Opportunities:
 increase in the popularity of online stores
purchasing power of customers will increase (Youell
2013)
more differentiation scopes.
•Threats:
 the change of global dynamics (Luo, C. and
Wang, Y., 2019
rise of local artisans
saturation in innovation
Reference list:
Dach, L. and Allmendinger, K., 2014. Sustainability in Corporate Communications and its
Influence on Consumer Awareness and Perceptions: A study of H&M and Primark.
Procedia-Social and Behavioral Sciences, 130(15), pp.409-418.
Finster, M.P. and Hernke, M.T., 2014. Benefits organizations pursue when seeking
competitive advantage by improving environmental performance. Journal of Industrial
Ecology, 18(5), pp.652-662.
Youell, M., 2013. An Analysis of the Growth and Success of H&M. How They Could
Impact the Largest Swiss Watch Company, Swatch Group, p.108.
Luo, C. and Wang, Y., 2019, November. Game Theory in the Fashion Industry: How Can
H&M Use Game Theory to Determine Their Marketing Strategy?. In International
Workshop of Advanced Manufacturing and Automation (pp. 633-638). Springer,
Singapore.