Challenges Faced by H&M in Digital Transformation

Major Project

TABLE OF CONTENTS
TASK ONE......................................................................................................................................3
1 Identification of one of the challenges that is faced by Hennes and mauritz UK LTD............3
TASK TWO.....................................................................................................................................5
2 One of the suggestions for H&M..............................................................................................5
TASK THREE.................................................................................................................................7
3 The way company can practically implement solution............................................................7

TASK ONE
1 Identification of one of the challenges that is faced by Hennes and mauritz UK LTD
There are various external changes in environment such as changes in taste and
preference of customers, transformation in technology or more use of digital media by people to
have fun, entertainment and strong connectivity with each other. H&M is not able to adapt to
digital transformation that leads to decreased in overall sales volume and profitability of
enterprise. Company is not able to attract more customers thus it have to loss its market share
and competitive positioning of firm. Despite H&M has launched its online stores in 1998 most of
the people think that company has adapted a changes at very slow pace that lead to
dissatisfaction among customers. Therefore it can be stated that digital disruption has eaten
business of H &M in fashion retailer so company needs to take several steps in order to cope up
with external changes of environment for enjoying profitability for longer period of time (H&M
FACES AN UNCERTAIN FUTURE AS IT STRUGGLES TO ADAPT TO DIGITAL, 2019).
So one of the most important challenges that are faced by H&M can be understand with helps of
Bruke Litwin change model such as:
External environment: There were several changes in external environment that was not
adapted by Hennes and Mauritz such as digital transformation, increasing use of social media
and search engine by customers to know about various products and services of different brands
so that they can select best alternative options (Bacevice and et.al., 2020). Therefore company by
not identifying opportunities that are available in external environment have to face reduction in
sales and profitability of enterprise.
Mission and vision statement: H&M mission was to bring innovation and changes in fashion
retail industry and incorporate ethical, fair and equal practices within enterprise. Company is not
able to achieved its mission and vision statement due to ineffective management and adaptation
of external changes of environment.
Leadership: It can be stated that CEO of company Karl john have used transactional leadership
style to manage diverse individual within enterprise. Transactional leadership does not allow
employees to perform task as per their choice as they have to abide to strict rules and regulation
3