Analysis of H&M: External Factors and Competitor Analysis

H&M
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Background information of H&M..........................................................................................4
External analysis.....................................................................................................................4
Competitor analysis................................................................................................................6
Internal analysis in context of H&M by using strategic tool..................................................7
Strategic directions tool use by company to gain competitive benefits.................................7
Justification based on chosen tactics......................................................................................8
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic management is the ongoing process of planning, organizing, directing, staffing
and controlling all the necessities an organization needs to meet its goals and objectives of
company in effective manner. This help to create wonderful advantage for company in effective
manner. The report is based on the H&M Company which best Fashion Style Company.
Company have different kids of products and services. The reports will analysis the external
factors which affect to company. This will analyze competitors of company as well as internal
capabilities of company. This will select the best strategic direction for company by using
models. At the end of report will explain the some recommendations which are helpful for
business.
MAIN BODY
Background information of H&M.
H&M is the Swedish company which deals into Fashion industry. The company is
multinational clothing retail company known as fast fashion clothing for the men, women,
teenagers and children. The company operates into the 74 countries with over the 5000 stores
under the various company brands. Presently company have 126376 employees with 106 million
net incomes. This creates more value and goodwill for company in effective manner. The
company is listed into the London stock exchange which is provide the best quality of products
and services to their customers in effective manner. This customer more loyal but in the present
situation corona virus company faces various issues and problems with their sales because is fall
in down now.
External analysis.
In order to analysis external factor affect to the company here is select PESTEL analysis
model which is help to completely find out those factors which is affect to H&M from outside
the business. PESTEL model is refers with the political, economical, social, technological,
environmental and legal factor. Explanation of those is as follow:
Political factor:
There refers with the all the political factors which is affect to business in negative
manner. For example: if the Tax rate is increase then it is affect to the H&M because through
those prices of product is also increase (MARKETING THEORIES – PESTEL ANALYSIS, 2019).
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