Report Strategy Enterprise and Innovation 1

REPORT STRATEGY
ENTERPRISE AND
INNOVATION 1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Analysing internal resources and capabilities that give H &M a competitive advantage...........3
Key drivers of change in the external environment and their impact on the business activities
of H&M.......................................................................................................................................6
Evaluating the influence of major competitive forces on the business activities and
profitability of the organization...................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Enterprise strategy is a wide form of strategy within the organization which deal with
issues that affected to the company (Ischenko, 2018). It is developed by top management team
and board of director at higher level with in the firm. Enterprise strategy is important for
company survival and achieving the goal. Innovation is a process of implementing ideas and
introducing new product in the market which is beneficial for company.
H &M is a Swedish multinational clothing company headquartered in Stockholm. It is
second largest clothing retailer in the world and it was founded by Erling persoon (Candeloro,
2020). It focus is fast fashion clothing for women, men, teenager and in November, this company
operate in 74 countries with over 5000 stores.
Letter, this report will explain about internal resources and capability that give H&M a
competitive advantage. Identify the key driver of changes in the external environment and
evaluating their impact on the entrepreneurial activity of company. Using five forces framework
and other tools, evaluating the impact of competitive forces that influence entrepreneurial
activity and profit within retail industry.
TASK
Analysing internal resources and capabilities that give H &M a competitive advantage
VRIO model is an internal environment analysis framework that helps the businesses to identify
the capabilities and resources that give them competitive advantages (Jovanov, 2019). It is a tool
that provide a ground to begin mapping out and understanding what resources make the company
successful and provide competitive advantages. With the help of VRIO model, analysing the
internal resources and capability that give competitive advantages of H&M ;
Resources or
capability
valuable Rare Inimitable
and non -
substitutable
Organized to
exploit
Impact of
competitive
advantage
Advertising
product and
services
Yes No Yes Yes Increasing
customer trust
and loyalty
Cost Yes Yes No Yes Provide better
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advantage and
differentiation
product at
lower price
Better human
capital
Yes No Yes Yes Quality
enhancement
and better
leadership
Price
discrimination
Yes No Yes Yes Attract the
customer
Innovation
capability
Yes Yes No Yes Discovering
new and better
product
Strong global
presence
Yes Yes Yes Yes Realized
sustainable
competitive
advantage
Access to new
technology
Yes yes Yes Yes Connect with
the customer
easily
Enhance value
chain system
Yes No No Yes Increasing
productivity
Advertising product and services – From the above table this is a capability of the
company to advertising the good and services with the lower price and higher quality which
increase the interest of the consume. It is valuable for the company because it attracts the
potential customer and give competition in the market (Zameer, 2020). This is a reason customer
prefer one particular product rather than other company and this capability help H&M to get
competitive advantages in the market.
Cost advantages and differentiation – From the above table defining the capability that
gives competitive advantage to the H&M. It is valuable for company to provide same product
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