H&M's Global Strategy and Competitive Advantage: An Analysis

PGBM135 Global Strategy and Foresight London

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1 -..................................................................................................................................1
Question 2 -..................................................................................................................................3
Question 3 –.................................................................................................................................7
Question 4 -................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
It is important for company to develop effective and efficient business strategies that is helpful
for improving organisational practices and task. There are different factors that needs to be
consider by organisation for developing significant business as well as improving organisational
practices in order to attain desired goals (Velásquez, 2022). Global strategies of company is
helpful for creative action plan that is effective for successfully and accurately conducting
business practices in global market area. This report is based on H&M company. This company
is performing its practices in retail market area and it is a Swedish Multinational company.
Hennes & Mauritz AB that is well known as H&M company is a clothing brand this is providing
its products and services in large market area. Head office of this company is located in
Stockholm, Sweden and it was founded in year 1947. H&M company was developed by Erling
Persson and it is providing its high quality products and services in world wide market area. This
report includes information regarding the current global positioning of H&M taking in
consideration. In this the theories of competitive advantage and evaluate their relevance to
management. This report consist of the firm's strategy in relation to firm's resources, capabilities
and the firm performance. Apart from this the relevance of innovation and internationalisation in
designing and implementing H&M’s strategy/ competitive position has been evaluated in this
report.
MAIN BODY
Question 1 -
a)
H&M company is known for its high quality and fashionable products that is significant
for successfully meeting desire of customers. It has been analysed that there are different factors
and elements which could be consider as the driver for changes and it will lead to affect
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performance and functioning of business. it is essential for organisation to consider different
trends of fast fashion industry in order to develop right and accurate product that is able to
significantly meet customer requirements (Ferreira and et.al., 2022). Through this it has been
analysed that there are several external events such as Covid 19 that lead to have major impact
on performance and functioning of fast fashion companies. due to Covid 19 pandemic situation
the way of living and conducting practices has been highly changes. This can be consider as the
crucial factor that is affecting and influence the changes in fast fashion industry. It has been
analysed that now a days customers of fast fashion industry is considering online purchasing of
products in order to meet with the needs and wants of customers. This will lead to significantly
affect the way organisation is performing and conducting its practices as well as impact over
sales or profitability of organisation. digitalization and innovative technology has played crucial
role in the fast fashion industry. this could be consider as the crucial aspect that will lead to
increase performance of organisation as well as help in enhancing improving business practices.
through the support of these changes H&M company is able to develop strong and effective
relationship with its customers and lead to attract large number of customers towards business.
There is different new digital technology and platform that is significant for successfully
conducting business practices of fast fashion industry and it will lead to enhance overall
capability of company to attract more customers towards business.
b)
H&M is one of the largest company that is performing its business practices in large
market area. This is well established organisation that is providing high quality products and
services in order to meet needs of customers (Birkinshaw, 2022). The mission of H&M
company is to make the better choice easy as well as attractive in the entire garment industry.
The 5 year scenarios for H&M company includes consideration of sustainable business strategies
in order to successfully and effectively conducting its business practices. H&M company is
planning to consider innovative materials along with the processes that is helpful for making
products more sustainable. This will lead to have positive impact on organisation as well as assist
in overall growth and development practices of business. There are various kinds of products that
is offered by H&M company that is developed with high quality material as well as unique
design for meeting wants of customers. In the next 5 year scenarios for H&M company this is
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