Strategic Management: Analysis of H&M and Competitors

Strategic Management.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External: fast-fashion industry analysis.......................................................................................3
Competitors analysis....................................................................................................................5
Strategic capabilities....................................................................................................................6
Strategic options...........................................................................................................................8
Strategy selection and justification..............................................................................................9
CONCLUSION................................................................................................................................9
RECOMMANDATION...................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
H&M is the fast-fashion company which got continued success at market place by
offering their products and services. Presently company appointed new strategic manager who
undertake review of H&M strategy. Company is second largest clothing retailer and has 2500
stores worldwide in 44 countries. In 2012, company lunches conscious range of clothing making
use of large proportion. The present study is based on the H&M company and its competitors
analysis. The report will include the industry analysis as well as external analysis by using
appropriate model. This will find out the internal strategic capabilities of employees as well as
strategic option for working in better manner. The report will critically evaluate the selected
future strategy for H&M and proper justification. At the end of report will highlight some
recommendations for better opportunity.
MAIN BODY
External: fast-fashion industry analysis.
In order to analyse external environment and industry analysis here is select PESTEL and
Porter's 5 force analysis (Ahmad and et.al., 2017). Both are help to analysis complete work and
its work are as follows:
PESTEL analysis:
Political factor:
The political factor affect to the business of H&M. As per the case study company have
many of the stores at different countries which is importation monitor political risk. Most of the
state monitor the changes and made contingent plan in place to deal with any political instability.
Economical factor:
As per the case study, Corporate social responsibility is also affected to the business in
negative manner because of significant influences on the society (PESTEL Analysis, 2019). This
is the completely agrees by the company to behave ethically and contribute to economic
development.
Social factor:
Social factor another ways to affect H&M business because all the customers have own
taste and style which can affect to business. In that company need to make changes as per
customer.
Technological factor:

In today world, technology is advance day to day because of that company is affected
with lack of knowledge about technology uses. As per the case study, management need to work
with technological changes.
Environmental factor:
H&M have aim to provide 100% quality of product to customer as per case study. In that
management need to generate new products from analysing market as well as old products in
effective manner. Also, management need to recycle and durable material will be used for
products.
Legal factor:
In the past years, company have been involved in a number of legal disputes which are
regard to the clothing retailers (Guan and et.al., 2019). This can affect to business and
manufacturing department.
Industry analysis through Porter's five force analysis:
Threats of new entrants:
New entrants in the market come with unique item which can affect to H&M. As per the
case study company have uniqueness designs of product and best quality of product which is
helpful for H&M to cover up the business and profits.
Bargaining power of suppliers:
Bargaining power of supplier can affect to business because in the market have multiple
suppliers as per different locations and purchase raw materials at lower cost which is the strength
in its supply chain management.
Bargaining power of buyer:
This give higher impact because customer have higher bargaining power in that
management need to maintain their quality of products and services in effective manner (Kim
and Kim, 2017). As per case study, innovation, unique products and good quality of product
always keep interest of customer towards business.
Threats of substitute products:
H&M have great substitute product which is ZARA. In that company have their focus on
good quality of products and services.
Competitive rivalry: