Strategic Management: H&M Company Analysis

Strategic Management.
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
External environment analysis PESTEL.....................................................................................3
Industry sector Porter five force..................................................................................................4
Resources and capabilities VRIO................................................................................................5
Internal analysis SWOT analysis.................................................................................................6
CONCLUSION...............................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
Strategic management is the ongoing process of planning, monitoring, analyzing and
assessing all the necessities an organization which have need to meet its goals and objectives in
effective manner. The present report is based on the “H&M” company which deals in clothing
Fashion industry. This report will present a SWOT framework based on the PESTEL analysis,
Porter five force analysis and VRIO model analysis.
MAIN BODY
External environment analysis PESTEL.
PESTEL analysis is help to H&M for examine the various external factors like political,
economical, social, technological, environmental and legal factor which is impact its business.
The explanation of those are as follows:
Political factor:
Company product system is set up in the various country which can affect to business in
negative and in positive manner. The tax rate of country is not stable which increases day by day
then H&M affect because through that price of product is also increase and loss the interest of
customer from company products (Sun and Dang, 2016). On the other side, if tax rate decrease
then product price also decreases then it is attracted interest of customer towards product.
Economical factor:
Economical factors is consisted with the economic condition of country. Economic
condition of company is sets and perfect then customers have ability to purchase products
because through that their income sources are run effectively. On the other side, if economic
condition of country is not well then it can affect to the H&M company and their growth because
through that customer income is affected then they are not ready to purchase products from
company.
Social factor:
Clothing field where people are directly influenced by the social media. They relate more
with the brand which their favorite stars are promoted to business. Thus, the promoting through
the social media in that channel is important. In that attitude of customers is changed then
products are highly affected by company (H&M PESTLE Analysis, 2019). For example: attitude
of customer towards product is changed then H&M affected in negative manner. In respect to
that management need to produce different kinds and designs product is help to attract more
3