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.