Internal and extarnal factors

Introduction
H&M is very popular multinational retail company especially known for its
fast-clothing for men, teenagers, children and women. The company was
founded in 4 October, 1947 by Erling Persson. The headquarters is situated
in Stockholm, Sweden. According to the reports of 2019, it had generated
that it operates more than 74 countries with over 500o stores with different
brands of company.
H&M and its Internal and External Factors
External Environment
Political:
 Instability of economy because of trade
 Constantly changing leaders of Asia, Europe and USA
Economical:
 Improving disposable income of targeted market
 Changed laws related to labour
Social:
 Constantly changing customers’ choices
 Emerging social media channels
Technological:
 Bringing innovative technologies like Artificial Intelligence and Data
Analytics for improving efficiency
 Enhanced significance of digital channels
Legal:
 Strict rules, regulations and norms for foreign organizations in different
countries
 Taxpaying rules
Environmental:
 Increasing demand for products that are eco-friendly
 Changing demand in apparel due to conditions of climate
 Impact of H&M on external environment:
Political:
 Producing and importing products in different countries
according to the rules
Economical:
 Contributing in Gross Domestic Products
 Employing large number of employees
Environmental:
 Using environment friendly materials in the production of
apparel
 Experimenting with recycle and reuse
Social:
 Fulfilling expectations and needs of consumers’
Internal Factors
Strengths:
 Great brand value with strong presence globally
 Large number of satisfied customers
Weaknesses:
 Designs could easily replicate by local brands
 Due to insensitive promotions it has to face backlash
Opportunities:
 Popularity among customers’ for online as well as offline stores
 Improving buying power of customers’
Threats:
 Competition from local artisans and other competitors
 Requirement of innovation to keep up with latest and fashionable trends
Conclusion
From the above data it is being summarized that for every
type of organizations analysis of external and internal environment
is necessary.
Belin, P., 2019. Marketinške strategije u poslovanju poduzeća H&M (Doctoral dissertation, University of Dubrovnik. Department of Economics and Business Economics.).
Islam, S. M., 2020. Marketing Strategies of Vintage Denim Apparels Limited (VDAL).
Sarker, T. R. and Al Saeed, L. S. L. A., 2020. Benchmarking Marketing and Business Strategy of UNIQLO to Start-up a Retail Shop in Bangladesh. Benchmarking. 12(2).