Internal and External Analysis of H&M

STRATEGIC
MANAGEMENT-
FORMATIVE REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
Internal and External Analysis of H&M..........................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The study of various internal and external factors affecting a company and its business policies
through various theories give an insight of the challenges company faces and strategies to
overcome that. H&M is a large clothing retail chain which caters to the needs of people from
various age groups. It is in 74 countries till yet and is the second largest retail chain in the world.
It has an online presence in around 33 countries. The company has a big scope still to enter new
markets and thus develop marketing strategies for them. An analysis of various theories can
certainly help in knowing the business and its expansion like SWOT analysis, Porter's five
forces,PESTLE analysis and VRIO analysis of resources and capabilities, covered up here.
Internal and External Analysis of H&M
PESTLE Analysis
Political factors
Political stability in recent years of UK has gone well with H&M. Intellectual Property
Rights for H&M have been patented by UK government thus protecting right over product
innovation and development. UK has a tax benefit policy for in store shopping thus benefiting
retail brands like H&M (Kumbara, 2020).
Economic factors
The UK exit from European Union can have an economic effect on sales of the business
of H&M,due to currency fluctuation and trade tariffs increase.
Social factors
The trend that people are looking for well designed branded clothes as they see some
famous celebrities doing that. People are ready to shell out extra money for well branded
products. H&M has profited from this survey and has grown famous with youngsters.